With nearly 106 million individual income-tax returns resulting in refunds in 2023, a significant number of Americans are already pondering how to use their additional funds. As the Wall Street Journal reported, this year’s average refund is a little over $3,100. If you are contemplating where to allocate this unexpected money, take a moment before embarking on your spending spree to explore innovative ways to make the most of your money.
- Pay down debt. According to LendingTree, nearly 40% of Americans use their tax refunds to stay afloat, whether tackling credit card debt or staying ahead on loan payments. Pay off some of that existing debt and rest easy knowing you’re taking steps towards your financial security.
- Prepare for unexpected expenses by building up your emergency savings. While the latest gadgets may tempt you, prioritize your future by saving a portion of your refund and let compound interest work its magic.
- Plan for tomorrow by boosting your retirement savings. The tax benefits of saving for retirement are substantial. Consider contributing a portion of your paycheck to your employer’s 401(k) plan, especially if they offer a matching contribution or moving your refund into an Individual Retirement Account (IRA).
- Protect your loved ones by investing in permanent life insurance. Don’t wait until it’s too late to safeguard your family’s financial security; securing coverage while you’re young and healthy can save you money in the long run. Even more, a recent study by Ernst and Young showed that Americans with a holistic financial plan that includes permanent life insurance, investments, and annuities have better returns than those who don’t have a holistic plan.
Remember, everyone’s financial situation is unique. Don’t hesitate to seek guidance from a professional. We highly recommend consulting a holistic financial security professional (FSP) when crafting your financial plan. A reliable FSP, preferably one affiliated with Finseca, can assess your circumstances, offer clarity on available options, and tailor a comprehensive strategy that aligns perfectly with your needs.
About Finseca
At Finseca, we know that financial security improves people’s lives and protects their livelihoods and future well-being. We are rising to the challenge of increasing financial security for all. Finseca represents the men and women of the financial security profession who dedicate themselves to delivering holistic financial security to their clients every day.
SOURCE Finseca