Ideas for spending your tax refund - | WBTV Charlotte

Ideas for spending your tax refund

CHARLOTTE, NC (WBTV) - So you got a little money back when you filed your tax return?  You may feel the urge to spend it all on a great vacation or that thing you've had your eye on at the store.


Judson Gee, with JHG Financial Advisors, stopped by WBTV News Sunday Morning to offer some advice.  His tips are below but he reminds us that everyone's situation is unique and a tax professional who knows your situation might be your best resource for advice.


Ideas on how to use your tax refund from Judson Gee:


Spend Some, Invest Some, Give a Little Back

A. Spend Some!

1. Put some money into your short to midterm savings in order to build a cushion or plan for upcoming vacation, your next emergency (auto repair, home projects, other personal expenses that don't recur each month, such as fixed expenses like mortgage/rent, utilities etc) I call this your M2 Vault (2-3 year $$)

B. Invest Some! - Hopefully part of one's refund comes from good planning. Perhaps they made an IRA contribution or maximized their Company Retirement Account contributions, thus they lessened their tax burden via Deduction a 2014 Contributions.

1. Therefore this is a great opportunity to build on their long term savings by either increasing their 401k/403b percentage to a higher level, or they might make contribution to a Traditional IRA, or even Tax Free Growth ROTH IRA, to compliment their company plan

C. Give A Little Back!

1. Your favorite charitable organization could use your help! As Grandmother Gee used to say; “it will come back to you tenfold, not necessarily monetarily but in other ways” Karma!

Of course it may be tax deductible too!

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