I am about to have a few thousand dollars after I receive my tax refund. I am putting the money in a savings account but I want to do something else with the money to make it grow. Anyone have any suggestions?
2007-01-05 08:40:56 · 5 answers · asked by mz_jamaya 2 in Business & Finance ➔ Taxes ➔ United States
1st - fix your withholding so no refund this yr. Should never be giving govt an interest free loan & then often paying interest to get it back early. If have no Ira - start 1 for 2007 now. Get out of banks - no savings; just whatever cking you need. Can never not lose purchasing power after taxes an inflation there. A classic closed end like ADX would help a lot either in an Ira or not. Can open acct at schwab. They do have foxed income options as well.
2007-01-05 10:09:34 · answer #1 · answered by vegas_iwish 5 · 1⤊ 0⤋
H & R Block is offering a 5.25 % savings account if you file your taxes with them. The closest rate I have seen to it is around 2 % so if you need access to the money this is the way to go. They are also offering IRAs that are at the same rate. Again the rates are no where near compettive at other places. This would be great if you can live without the money. The best part is it is taken care of when you file your taxes so you dont have to make an extra trip to the bank.
2007-01-05 08:51:59 · answer #2 · answered by misskenzie12 2 · 0⤊ 0⤋
It depends on your risk assessment. If you are not afraid of the stock market, you can invest it into mutual funds. You best bet it to put it into an IRA, preferably a Roth since it grows tax free.
Any mutual fund that you put your money into should not contain any loads or sales charges. There are many good companies out there like Vanguard, Fidelity, etc. If any company wants to charge you any money to invest your own money, stay away from them.
If you have any debts, you also could pay down or pay off the debt.
2007-01-05 10:30:40 · answer #3 · answered by Steve 6 · 0⤊ 1⤋
Sure. Put it into mutual funds. They grow much faster than savings. Many have growth over 10%. H&R Block has a Financial group and you can hook up with a personal financial advisor who will invest it according to your age and level of risk you can handle. This is a great idea and I have to congratulate you on this decision! Too many will have it spent with nothing to show for it. Way to go!
2007-01-05 09:30:44 · answer #4 · answered by Anonymous · 1⤊ 0⤋
It depends upon risk versus reward. Can you afford to watch it go down in value at times during a long term? If so buy no load stock index funds. If not keep it in the bank and buy CD's when rates are high.
2007-01-05 08:45:58 · answer #5 · answered by spicertax 5 · 0⤊ 0⤋