Jameson Van Houten is one of the leading Scottsdale financial planners found within Arizona, and offers advice for those who decided to save their tax refund this year. In fact, this Scottsdale financial planner reveals that there are some great ways to invest this money that could potentially be life-changing.
It’s important to ask oneself what a large chunk of money like a tax return could help accomplish, but there are some easy ways to invest the money without simply sticking it a savings account that doesn’t yield much interest. One suggestion that Jameson Van Houten knows will return more money for the investment is by placing it into a workplace-sponsored retirement account. This is an especially good option for those out there with employers that have matching programs in place, since it will add even more money to the account this year.
Another option Jameson Van Houten shares that is a smart move for investing a refund is funding an IRA. For those who don’t know, the maximum contribution each year is $5,500 (Roth and traditional for those under 50) or $6500 for those over that age. With the amount of some people’s tax refunds, their return might be enough to fund a retirement account for the entire year without having to think about it again until 2016.
Last but not least, consider adding some home upgrades that will save money as well with your return. Certain improvements might even part of the Energy Efficient Property Credit, which gives a tax credit of up to $500, and will be in place until the end of next year, perfect for those who still need some time to plan. For those who already spent 2015’s refund—perhaps the other go-to financial principles from Scottsdale financial planners could apply to next year’s return as well.