4 ways to put your tax refund to good use

This tax season, the average federal tax refund is over $1,900. Tax refunds are a happy windfall for many people, and it’s tempting to spend that lump sum of cash on something fun. However, if you can resist the urge to splurge, here are four ways you can invest your refund toward your financial future:

  1. Reduce your debt. Paying down debt, especially on high-interest credit cards, may save you big on finance charges.
  2. Build your emergency fund. Experts recommend setting aside three to six months’ worth of expenses in a bank account as a safety net in case of unexpected expenses or loss of income.
  3. Improve your home. By investing in upgrades or repairs for your home, you can increase its value and enjoy the improvements.
  4. Save for your goals. Some extra funds could bring you closer to your next vacation, a home purchase or other goals.

Lastly, if you receive a big refund, consider adjusting your withholdings or estimated tax payments. Reducing your withholdings or payments may allow you to receive more in each paycheck rather than waiting for a big refund every year.This material is for informational purposes only and is not intended to provide, and should not be relied on for, tax, accounting or financial planning advice. Consult your own tax, accounting and financial planning advisors for advice for your specific situation.

Why People Hate Their Mortgage and Why You Shouldn’t


  4. Retirement and College – Plans fully funded.


Mortgages and Divorce

We have all heard the statistics: nearly 50% of all U.S. marriages end in divorce.


The good news is it doesn’t have to be this way. By taking a proactive approach and creating a specific plan to maintain and protect your credit during divorce, you can ensure that “starting over” doesn’t have to also mean rebuilding credit. The first step is to obtain a valid copy of your credit report.


  1. Can you purchase a new home now or will you have to wait until everything is finalized?
  2. Can you refinance the house to pay off your spouse and consolidate debt?
  3. Can you use child support or alimony to qualify for a new mortgage? How long do you have to wait?

These are some of the questions that we can assist you with. Divorce is difficult for everyone involved. By having professional advice, both legal and financial, you can ensure that your credit remains intact

Getting Your Financial House in Order

Life is often so hectic that it is difficult to find the time to make sure all areas of your financial future are secure. Yet such a comprehensive assessment is critical to the ongoing health, security and stability of your financial future.

Take a moment to ask yourself these important questions and check off those you have completed.

  1. Property Insurance Review

    Do you have adequate property and casualty insurance? Do you need an Umbrella Policy? Do you have the correct deductibles to minimize your premiums while still providing adequate protection?

  2. Family Budget

    Do you have a family budget? Mint.com is a great resource to get your finances organized and see where your dollars are going each month.

  3. Emergency Savings Plan Funded

    Do you have 3-6 months’ worth of living expenses saved? Would you be able to survive financially if there was a job loss or unexpected short term disability?

  4. Life Insurance Review

    Do you have at least 10 times your salary in life insurance? Is your life insurance portable (not tied to your current job)? Have you updated your insurance since you got married, had kids or bought a house?

  5. Disability Insurance Review

    Do you have short and long term disability insurance? What would happen to your finances and family if you were out of work for 6 months, 2 years?

  6. Will & Estate Plan

    Do you have a Will and/or Estate Plan? Have you reviewed your will or estate plan within the last 5 years?

  7. Retirement Plan

    Do you have adequate retirement savings? Are you saving in such a way that you are reducing future taxes? Will you have an income stream in retirement that is not contingent upon the ups and downs of the stock market?

  8. College Plan

    Do you have a detailed savings plan for college? Do you understand how to save so that your expected family contribution is as low as possible?

The Chaffee Team is here to help you check these items off your “to-do” list.  We have a vast list of referral partners who we work closely with to get you answers to these important questions.

Contact us today if you would like a referral for any of these financial milestones.