What should you do with a tax refund?

Are you expecting a tax refund this year? If so, what will you do with it?

Consider these suggestions:

You could use your refund to contribute to your IRA. You’ve got until April 18 to fund your IRA for the 2021 tax year, but if you’ve already reached the maximum amount, you can put money in for 2022.

Here’s another idea: Use some of your refund to build up the cash portion of your portfolio. By having cash available, you’ll be ready to take advantage of new investment opportunities.

You also might consider investing in a 529 education savings plan for your children or grandchildren.

But don’t forget your day-to-day needs. You might want to use part of the refund to pay down some of your debts or to build an emergency fund to meet unexpected costs, such as an expensive repair to your home or car.

And you might also think about making a charitable gift. Your generosity will be appreciated, and you could earn a tax deduction.

A tax refund is always nice to receive – and it’s even better when you put the money to good use.

This content was provided by Edward Jones for use by Daniel Pellerin, your Edward Jones financial advisor at 189 East Main Street Suite G, in Newport, (802) 334-6261.

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