If you have already visited your CPA or filed your 2012 income taxes on your own; you may want to invest the money (provided you are receiving a large sum). Some may ask why investing your tax refund is a smart move, while others can’t wait to cash the check.
Here are some investment ideas for those of you who are considering it.
Owning a home requires upkeep and constant maintenance, right? Well, you certainly want the value of your home to increase on a yearly basis. To this end, you may want to use your tax refund and reinvest it into your home by implementing a few repairs. Or perhaps your front lawn needs new sod, or your backyard landscape needs a workover.
Whatever the case may be, the more you invest in your home, the more likely you will be able to sell it at a higher price.
Another way to invest the tax refund is to apply it towards a bank CD or increase your IRA account. Think about your retirement fund; maybe you would like to increase the amount you are paying into it now that you have this money available. Also, you may be saving for your children’s education via a savings account or other high-yield account.
Instead of borrowing money, invest your tax refund for any future eventuality. You may have insurance premiums you need to pay; why not pay them off with your tax refund.
Whether you invest the tax refund in your home or for the future, this is found money which you may not want cash and spend. Do you have credit cards that you need to pay off? While this may not seem like an investment, it can certainly help by getting that debt off your back and help you save your wages for other important things.
Think about why investing your tax refund is a smart move. Talk to your accountant to determine the best course of action which will yield the highest interest for you and your family. This may be the smartest move you’ve ever made!
Our tax refund last year went into a savings account for our son. This year, we’re investing it in exterior updates for our home for some extra curb appeal. We’re ripping out the ugly bushes, re-seeding the lawn, and painting our front door and shutters. I’ll also probably do some DIY garden planters for the front porch to make it pop just a little more. I’m thinking some bold black and white stripes, with really brightly colored flowers inside!