Tuesday, May 21, 2013

Use Income Tax Refunds Wisely





Are you one of the few who’s getting a tax refund this year? If so, you’re probably thrilled. After all, getting money is infinitely better than having to pay money! While you might be tempted to take that refund check and go on a shopping spree or make a few “splurge” purchases, why not do something smarter with your extra funds? You can visit a Naperville wealth management firm to learn about wise ways to spend your little windfall. You might want to invest it in the stock market, for example, or use it to open up a savings account.

Of course, if you have a lot of debt stacked up, your Naperville wealth management firm will likely advise you to use the extra cash toward paying it off. You could pay off a credit card in full, for example, allowing you to opt out of excess interest fees and to boost your credit score. This is particularly helpful if you’ve fallen a little (or a lot) behind on those credit card payments! You could also use the extra money toward paying some or all of your home or car loan, or toward student loans or other pressing financial demands.

If your present is pretty well taken care of, financially speaking, then you can consider investing the extra money in your future. Ask your financial advisor about opening up an IRA to help you save for retirement or, if you have children who would like to one day attend college, think about opening up a 529 plan.

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