Revamping your refund
EL PASO, Texas —
Nearly two-thirds of Americans are expecting to get a tax refund this year, and the options are endless on what to do with your tax refund.
Last year in Texas, the IRS said, the average tax refund was just over $3,000.
Local financial professional Brian Mirau, from Mirau Capital Management, said there are several ways to revamp your refund. The first? Buying your financial freedom.
“Credit card debt in America is at an all-time high,” Mirau said. “It’s over a trillion dollars. If you have high credit card debt, high interest loans, it’s good to go ahead and get those paid off.”
Mirau also recommends getting a piece of mind by setting up an emergency fund, like a savings account.
“We recommend having somewhere between 3 to 6 months worth of expenses set aside in your emergency fund,” Mirau said.
The third step is upgrading your retirement. Mirau suggests putting aside 20 percent of your paycheck to your 401k.
“We tend to spend what we earn, but we know if we save a little bit over a long period of time, that’s how it adds up and we get a pretty good retirement account,” Mirau said.
And of course, he says people should invest in their future. According to Mirau, Baby Boomers are the fastest growing segment of people with student loan debt.
“Well your thinking, how can that be the Baby Boomers?” Mirau said. “Well, their grandchildren. They’re borrowing money for them.”
Mirau says Baby Boomers should set their money aside for a “529 plan,” for as little as $25 to $50 a month.
He says starting the plan will help you avoid being part of the 44 million Americans with student loan debt.