How Do You Invest A Tax Refund Or Rebate?
Are you going to get a tax refund this year? If so, two things come to mind: • You need to adjust your withholding or take a hard look at your tax situation. No one should get a refund, because all you are getting is your own money back without interest. • If you are getting a sum back that is large enough to make you think about what you should do with it (or if you come into a lump sum through the tax rebate, a bonus, an inheritance or other means), consider an investment in your future. What does an investment in your future look like? That depends, of course, on where you are in life and what goals and dreams you have. How you get there financially, will depend on your tolerance for risk and how much time you have to achieve your goal or dream. Here is a general rule that may help with your planning to meet your goal. It relates to different financial products and the amount of time you have to work towards your goal. If you have: • Two years or less – Fixed income products such as
