The Uncle Sam Bonus Plan

So far this year, income tax refunds are averaging $2,650–up about $100 from last year. Among the suggestions about what to do with that money from a recent _MSNBC_ article: Put the money in an IRA, pay down debt, give some to charity, invest in yourself by taking a class, pay to have a will or more comprehensive estate plan created, use a portion of it to treat yourself to something you’ve been wanting, and change your withholding so you don’t overpay on your taxes again this year.
h3(matt). Matt’s View
p(matt). Giving to a good cause is a great use of at least a portion of a tax refund. Which organizations are addressing issues that you care about? One favorite of our family is , which helps impoverished children. As for other ideas for your refund, if you don’t have an emergency fund, open a money market fund with a brokerage house such as Fidelity or Vanguard. Paying down debt is my next choice. And one last idea: If you have children and haven’t started saving for their college expenses, consider putting some of your refund money in a 529 plan. is a good resource for finding the right plan.