Make Your Tax Refund Work for You

April 27, 2016 | By Steven DiGregorio

Tax Refund

Make Your Tax Refund Work for You

 

How will you spend your tax refund?
Every year we scramble to get our taxes filed with the IRS, no one wants to pay penalties or give Uncle Sam cause to audit our taxes. After the 15th of April most either have received or happily begin thinking about their refund and how they plan to spend it!

Now what to do with all that money? Here are some great  ideas to make your buck to farther:

INVEST
The most powerful decision is to invest!  Make your money work harder for you! Whether you park the dollars in safe, risk averse investments or strategize for longer term goals, it’s one of the best decisions you can make with your tax refund. “Diversification is an invaluable form of risk management,” says Steven DiGregorio President Compass Asset Management Group LLC. “A well structured portfolio with low expenses and non highly correlated assets is a great approach” — don’t put your eggs all in one basket and remember, investing is for the long-term.

Consider the cost. Fees are how your adviser is compensated and can affect overall returns.

Don’t gamble, place your trust in an investment manager who is a fiduciary legally bound to act in your best interests.  A fiduciary’s responsibilities include:

  • Acting solely in the best interests of the clients or participants at all times.
  • Controlling expenses of the underlying investments to ensure they are reasonable.
  • Maintaining a portfolio of investments in which risk is controlled and appropriate for the client.
  • Following the Prudent Man Rule — carrying out duties with the care, skill, prudence and diligence of a prudent person familiar with the matters.

IMPROVE
Make your home more energy efficient. Stop throwing money out the window when it unbearably hot or cold. There are many tax credits and/or rebates that make converting your home to solar or wind power a shrewd business decision.

EDUCATE
Invest in additional education and improve your skill set. With mergers and acquisitions being the new norm, only the most skilled staffers are kept on. Make yourself indispensable and finally get that well deserved raise.

ELIMINATE
Pay off student loans and credit cards.  If the interest payments are killing you, consider the cost of consolidating your debt. Then create a plan to pay down your debt thereby freeing up more money for other important things in you life.

EXERCISE
Invest in your health. Can you think of a more invaluable investment you can enjoy? No one likes being sick, debilitated or a burden on family and friends. Start eating right, exercise, and avoid toxic relationships, both personal and professional. That may mean a new career, lifestyle or business.

THE UNEXPECTED
Create an emergency fund.  We live in challenging times, most of us fully know and expect that sometimes the car just won’t start or the next big storm may send that big maple tree down on the roof. Plan for unexpected events. Don’t let these expenses wind up on your credit card that will take months and more money to pay off.

RELAX
Take a vacation. Spending time with family or friends can refresh your batteries … and you’ve earned it.

All great ideas to consider before cashing that check!

 

About Compass Asset Management Group

Our boutique-style firm has an investment philosophy is both prudent and value driven. We combine research from the largest firms on Wall Street with three decades of market experience to provide strategic, tactical and dynamic investment management.  Compass Asset Management Group, LLC delivers personalized financial planning, estate planning and investment management advice in a private setting with a high degree of sensitivity to your concerns and objectives. Our goal is to exceed yours expectations by listening closely, understanding deeply and communicating well through frequent, personal consultations entirely focused on your financial goals.

Make the right choice with your financial future.

Consult Compass Asset Management Group for advice & guidance that will change your life.

Plan better to live better…Call Compass Asset Management Group today.

 

For more information contact us at 845.563.0537 or contact@CompassAMG.com.

Compass Asset Management Group | 100 Stony Brook Ct. | Newburgh, NY 12550
845.563.0537
www.CompassAMG.com

Steven M DiGregorio is President of Compass Asset Management Group, LLC and an Investment Advisor Representative with Spire Wealth Management, LLC a Federally Registered Investment Advisory Firm.  Securities offered through an affiliated company Spire Securities, LLC a Registered Broker/Dealer and member FINRA/SIPC.

Please note that the content of this article does not constitute tax advice and is only intended for the educational purpose of the reader.  Please consult your tax advisor for specifics regarding your circumstances.

 

Source:

Foreman, G. (March 21, 2013). 10 Ways to Put Your Tax Refund to Work. Money, U.S. News & World Report.

Gillespie, P. (April 18, 2015). How to Invest $1,000. Investing Guide, CNN Money.

Photo Cred.

Tags: finances, financial planning, investing, investment strategies, investments, IRS, IRS Tax Refund, retirement, Taxes

Steve Digregorio Headshot
STEVEN M DIGREGORIO is President of Compass Asset Management Group, LLC and an Investment Advisor Representative with Spire Wealth Management, LLC.
Connect with him on LinkedIn.
Back to Results | |