Tax season is here, so here are five things we recommend you do with some of that tax return money:
1. Pay down your mortgage. Whatever you can set aside, make sure that you take it and apply it to the principal balance of your mortgage so you can get it paid off sooner.
2. Add to your down payment savings. If you’re planning to buy a home this year, a tax return is a good opportunity to save some extra money to put more down.
3. Investment property. You could also use the money as a nest egg for a down payment on an investment property. This allows you to put your money to work for you and eliminate some risk.
4. Put it into an investment vehicle. Whether it’s an RSA, Roth IRA, or something similar, you can make tax-free gains here. Disclaimer: I’m not a financial professional, so make sure you contact one before doing this.
5. Make upgrades to your house. This is a great opportunity for you to reach out to your real estate agent to figure out which upgrades and improvements will bring you the most money in return when you sell down the road.
If you have questions for us about anything we mentioned above, feel free to reach out via phone or email. We look forward to hearing from you soon.