A tax refund can be a welcome financial windfall. Consider these unique ways to take advantage of the extra money in your pocket.
Don’t get a refund
According to financial expert Jean Chatzky, you may want to “get rid of the refund.” In other words, if you receive a refund, you’re likely paying too much in taxes throughout the year and essentially giving the government an interest-free loan. Consider using that money to increase your retirement contributions throughout the year. For example, if you receive a $1200 refund, increase your 401(k) contributions by $100 a month.
Invest in your home without tapping its equity
Dreaming about solar panels? Your tax refund can be a great way to invest in solar, which will increase your home’s worth and lower your electricity cost. RCU offers low-rate, flexible term solar loans for the purchase and installation of solar panels for your home. Click here to learn more.
Donate to charity
While you may love to give, donating to charities and nonprofits might not work for your budget. Your tax refund is an excellent way to support organizations that need your help. To find a list of reputable charities, visit charitynavigator.org, charitywatch.org, or give.org.
For additional ideas on how to make your tax refund work for you, contact RCU’s Investment and Wealth Management* team, available through CUSO Financial Services L.P., at 1 (800) 479-7928, ext. 65040 or online.
*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The credit union has contracted with CFS to make non-deposit investment products and services available to credit union members.