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Rusty · 03-24-2019, 06:08 PM

This article explains why people should not be getting a big refund and I feel the same way:

"Here’s what you could be doing with your money if you had it for that year. Let’s assume you had $2,800, around the amount of the average refund.

1. You could save for retirement. When you let the government sit on nearly $3,000 for up to 12 months, you’re giving up a huge opportunity for savings. What if, instead of waiting for the IRS to refund you your overpayments each spring, you bumped up your 401(k) contributions by a percentage point or two (or more)? Over several decades of your working career, that change could earn you a more comfortable existence in retirement. “There are ups and downs in the market,” says Jude Coard, a tax partner with Berdon LLP in New York City, “but if you’re a long-term investor and you don’t put that money in until you get your refund, you’re basically losing a year’s worth of appreciation on it.”

2. You could have an emergency fund. That $2,800 is no small chunk of change. If you had an unexpected car expense or medical bill, you’d probably be really happy you had it. Emergency funds don’t spring up overnight — you have to put money aside, little by little. If you don’t have one, an extra $233 a month would help start to fill yours out. (Your goal is to have enough funds to tide you over for six months worth of household expenses.)

3. You could pay down debt. As mentioned, a refund of $2,800 is an extra $233 a month in greenbacks you could have had in your pocket, which you could have used to pay off debt or to have kept yourself from getting into debt. About half of U.S. households report carrying a credit card balance. “You could dedicate that extra money to paying down their balances, which could save you as much as 20% on that money,” Coard says. Even if you’re not paying that high of an interest rate on your plastic, the average credit card charges 13% to 15% in interest, so keeping your balance low (or nonexistent) is a good idea."

https://learnvest.com/article/got-a-...-dont-want-one

03-24-2019, 06:08 PM	#64
Rusty Senior Member Join Date: Oct 2010 Posts: 2,028 Thanks: 603 Thanked 687 Times in 425 Posts	This article explains why people should not be getting a big refund and I feel the same way: "Here’s what you could be doing with your money if you had it for that year. Let’s assume you had $2,800, around the amount of the average refund. 1. You could save for retirement. When you let the government sit on nearly $3,000 for up to 12 months, you’re giving up a huge opportunity for savings. What if, instead of waiting for the IRS to refund you your overpayments each spring, you bumped up your 401(k) contributions by a percentage point or two (or more)? Over several decades of your working career, that change could earn you a more comfortable existence in retirement. “There are ups and downs in the market,” says Jude Coard, a tax partner with Berdon LLP in New York City, “but if you’re a long-term investor and you don’t put that money in until you get your refund, you’re basically losing a year’s worth of appreciation on it.” 2. You could have an emergency fund. That $2,800 is no small chunk of change. If you had an unexpected car expense or medical bill, you’d probably be really happy you had it. Emergency funds don’t spring up overnight — you have to put money aside, little by little. If you don’t have one, an extra $233 a month would help start to fill yours out. (Your goal is to have enough funds to tide you over for six months worth of household expenses.) 3. You could pay down debt. As mentioned, a refund of $2,800 is an extra $233 a month in greenbacks you could have had in your pocket, which you could have used to pay off debt or to have kept yourself from getting into debt. About half of U.S. households report carrying a credit card balance. “You could dedicate that extra money to paying down their balances, which could save you as much as 20% on that money,” Coard says. Even if you’re not paying that high of an interest rate on your plastic, the average credit card charges 13% to 15% in interest, so keeping your balance low (or nonexistent) is a good idea." https://learnvest.com/article/got-a-...-dont-want-one __________________ It's never crowded along the extra mile.