What Should You Do with a Tax Refund?

What Should You Do with a Tax Refund?

As people begin filing their taxes, they may discover they are due a large refund. Is it better to pay off debt or invest? Tradition’s Frani Feit, CFP answers this question on

Q. I expect to get a larger than usual tax refund. I’m trying to decide if I should use it to pay off some debt – a HELOC and a credit card – or invest it in an IRA. What should I consider?
— Can’t decide

A. You have a lot to consider, and we’re glad you’re planning to use the refund in a way that will improve your financial situation.

This refund is an opportunity to think about your total financial picture, said Frani Feit, a certified financial planner with Tradition Capital Management in Summit.

In looking at each option, she said, you should consider interest rates and taxes.

Read the entire answer here.



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