Best Ways to Use Your Tax Refund - Wealth Coach William R. Patterson
In February through April of every year, millions of Americans will be filing their taxes and receiving sizeable refunds.
Here are seven smart ways to make best use of your tax refund:
- Reduce your credit card debt.
It is difficult to build wealth if you are paying 20-30% interest on credit cards. There are few better uses of your tax refund than paying down your high interest rate debt. You can use the Resources section of BaronSeries.com to obtain your free credit report and find the fastest way to pay-off your debt.
- Contribute to a Roth or Traditional IRA.
Through April 15th, individuals are allowed to contribute up to a $4,000 ($5,000 if you are age 50 or older) to an IRA for tax year 2007. If you are unable to make the April 15th deadline, you can make your 2008 contribution with it instead. For 2008, individuals are allowed to contribute up to a $5,000 ($6,000 if you are age 50 or older).
- Fund a 529 plan.
For many parents and students, the cost of higher-education has become increasingly difficult to manage. According to the College Board, tuition and fees at public colleges and universities have increased 51 percent on an inflation-adjusted basis over the last 10 years. 529 plans can be a great way to begin saving for your children’s college education. Some states even offer an income tax deduction for residents who contribute to a 529 plan.
Ranked as the #1 Business Motivational Speaker by Ranking.com, William R. Patterson is a four-time award-winning lecturer, national best-selling author, and wealth coach who uses his trademark approach, THE BARON SOLUTION™, to coach, train, and motivate business leaders, sales professionals, entrepreneurs, and investors. His breakthrough book, The Baron Son, has been translated around the world and featured in the Forbes Book Club. William is an internationally recognized business authority who has been a featured guest on over 500 television and radio programs. William’s website, BaronSeries.com, is also winner of three 2008 Web Awards including Best Wealth-Building Site. THE BARON SOLUTION integrates over 250 proven business and financial accelerators to help you rapidly achieve your personal and organizational goals.