Smart Money: How to Invest your Income Tax Refund

2016 is fast approaching which means income tax season is coming! If you are like many Americans who receive an income tax refund, you have already estimated your refund and you're anxiously awaiting W-2s! So while you are mapping out what you could potentially do with your refund (if you get one), make sure you prioritize. Put the most important things FIRST: life after tax season! There are several things you can do to maximize the use of your refund and position yourself for life after refund. Including (not limited to):

• invest in bonds
• invest in stocks
• pay your current bills up for 6 months
• buy & pay up your life/health insurance for a year or two
• start a business
• DO NOT buy or finance a vehicle, jewelry, anything from Aarons, Rent-a-Center, etc!

Let's focus on two options: business and insurance. In 2013, I received an income tax refund of $1,118 and started my natural product line. I invested those funds to start a business that I was passionate about without going into debt. Another great option is life insurance. Life insurance is a great investment tool to have in your portfolio (not term or whole life). When you receive your income tax refund, pay it up for year or two! No new "bills," and your life is covered!

Let's take a look at some numbers for me. I am a 25 year old female, no tobacco usage, with no medical issues, and I have not been prescribed any medications in several years (since a bad stomach flu in 2012). I also have a four year old son that I want to protect. Here are a few options available to cover me and my son for a year (these numbers are for 12/17/2015):

Foresters
Smart UL $250,000: $1,275.31
20 Year Term: $484.60

AIG
Elite Index II $250,000: $817.60
20 Year Term $250,000: $186.50

Mutual of Omaha
Guaranteed UL $250,000: $$1,144
20 Year Term $250,000: $452


These are just a few options that I have available. Keep in mind that permanent insurance is customizable, and the right agent will customize a protection plan that fits your needs and your budget. Stay tuned for more information about how to customize your life insurance to fit your needs and your budget. Be blessed!

~Shanta Wilkerson