Many people view their annual tax refund as a bonus or windfall to use as they wish. This timely video encourages you to consider how you might use a tax refund to help better yourself financially – e.g., by paying down credit card debt or investing the money – rather than engaging in a splurge that might feel good in the short term, but serves no long-term benefit. We also suggest you to consider adjusting your withholding and investing the difference in your retirement savings plans.
At Chesapeake Financial Advisors we know both our clients personal financial plan and tax planning and guide our clients to making smart decisions on tax withholding. One item we address in all our plans is increasing your 401k/403b savings contributions thereby reducing your taxable income and increasing your net worth.