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  • Steve Sexton

WHAT TO DO WITH YOUR TAX REFUND

Sexton Advisory Group share best tips for maximizing your 2024 tax refund.


Expecting a tax refund this year? Make your tax refund work for you by strategically allocating it to vehicles that can help build financial stability and health:


  • Update your emergency fund. I recommend having at least 6-months' worth of living expenses saved in your emergency fund to ensure you're covered in the event of unexpected job loss, an accident, or a medical diagnosis. If your emergency fund is already fully funded, consider updating the amount saved to reflect recent inflation rates.


  • Pay off high-interest credit card debt. Use your tax return to pay off high interest debt, prioritizing anything with an interest rate of 7% or higher. Start with the debt with the highest interest rate, then work your way down as you pay off each debt.


  • Contribute to your retirement accounts. Use your tax refund to contribute to your IRA or 401(k). If you're enrolled in a 401(k) program that offers employee matching, contribute as much as you can to the maximum - otherwise, you're leaving free money on the table.


  • Open a high-yield savings account. Allocate your tax refund to an HYSA, which offers a much better interest rate than a traditional savings account.


Wishing you a stress-free tax season,

Steve Sexton

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