It’s April, and that means tax refund season has arrived once again. Yes, a vacation or new furniture sounds tempting, but you might be wondering about ways to put your tax refund to its best use. We have a few suggestions that can help secure your financial future.
Consider Life Insurance
Whether you already have a life insurance policy, or you’ve been considering this important coverage, you know that the point is to offer long-term security to your family in the event that something happens to you. But many people face obstacles in securing a life insurance policy, such as:
- Fitting the monthly premiums into their budgets
- Remembering to pay premiums (and if you forget, your coverage could lapse)
- Wondering if they really have enough life insurance, especially when situations changeBy enrolling in a life insurance policy now and using your tax refund to cover the next year’s premiums, you can address all of these issues.
Contribute to a Health Savings Account (HSA)
If you have out-of-pocket medical costs, you can start or contribute to an existing HSA and use that money for future medical bills.
One nice benefit of an HSA is that the money you contribute is tax exempt. So not only do you save for expenses, but you also cut your tax liability. We can answer questions for you regarding HSAs and also help you to start one.
Contribute to a Roth IRA
You can contribute up to $5500 per year to a Roth IRA and this money will grow tax free. If you are married, both you and your spouse can contribute $5500 to a Roth IRA.
When you retire, the funds in your Roth IRA can be withdrawn without any tax liability, making a Roth IRA an advantageous retirement income source.
For more information on any of these solutions, please give us a call. We can help you decide what makes the best sense for you and your family and can answer any questions that you might have.