77
      Tuesday
      75 / 55
      Wednesday
      74 / 53
      Thursday
      75 / 56

      Investing your tax refund

      tax refund ideas
      tax refund ideas


      Budgeting expert Joni Kearn of Freedom Financial says we should be investing at least a quarter of our income tax refund. She broke down the numbers for us on Good Day Wisconsin.

      Kearn says the average 2013 IRS refund was $2,985 and the average 2011 WI tax refund was $2,463.

      Taking those numbers as an example,  she suggests you spend it like this:

      ½ paid down debt - $2,750

      ¼ fun money - $1,375

      ¼ long term savings - $1,375

      When it comes to long term savings, Kearn has the following suggestions:

      One-time investment of $1,375

      10 years @ 8% interest - $2,968

      20 years @ 8% interest - $6,409

      $1,375 every year for:

      10 years – $19,919

      20 years –$62,923

      30 years - $155,764

      Monthly investment of $50

      10 years - $9,147

      20 years - $29,451

      30 years - $74,518

      Options for investing:   Roth IRA, Annuities, Bond funds

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