View in: Desktop
Copyright @2024 TigerDroppings.com. All rights reserved.
- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Posted by
Message
Thoughts on what to do with unexpected tax return?
Posted by pngtiger on 11/17/16 at 3:03 am03
Have received a large tax return from the IRS (filed in october). Trying to figure out what to do with it.
Have life/disability taken care of, Roth is maxed, have money in mutual funds and long-term stocks. Only debt is a vehicle I purchased last year at 0% interest. Planned on saving a small portion for honeymoon (wedding has passed and all paid for). The rest is for whatever. Because I didn't expect it, and actually expected to have to pay more, I feel like I'm playing with house money.
Thought about paying off car note, but figure even putting the cash into a money market and gradually paying off car, I'll get out ahead. And I'm one that drives a vehicle a while (also have a 2003 Silverado). I could just go with the capital one 360 money market and get 1%, instead of the abysmal rates from banks. Or I could play the markets, though I have no experience. Or invest in real estate; the threads about buying and renting intrigued me. I've talked to my brother, who is in construction, about flipping houses or becoming landlords, but he's too busy to do anything currently.
One caveat: I'd like the money somewhat available if/when I'm looking to buy/build a house in the next 2-5 years, which means buying and renting may be out.
Have life/disability taken care of, Roth is maxed, have money in mutual funds and long-term stocks. Only debt is a vehicle I purchased last year at 0% interest. Planned on saving a small portion for honeymoon (wedding has passed and all paid for). The rest is for whatever. Because I didn't expect it, and actually expected to have to pay more, I feel like I'm playing with house money.
Thought about paying off car note, but figure even putting the cash into a money market and gradually paying off car, I'll get out ahead. And I'm one that drives a vehicle a while (also have a 2003 Silverado). I could just go with the capital one 360 money market and get 1%, instead of the abysmal rates from banks. Or I could play the markets, though I have no experience. Or invest in real estate; the threads about buying and renting intrigued me. I've talked to my brother, who is in construction, about flipping houses or becoming landlords, but he's too busy to do anything currently.
One caveat: I'd like the money somewhat available if/when I'm looking to buy/build a house in the next 2-5 years, which means buying and renting may be out.
re: Thoughts on what to do with unexpected tax return?Posted by SLafourche07 on 11/17/16 at 7:02 am to pngtiger
Not trying to be a douche, just a little early morning education:
The forms you file to the IRS are your RETURN. The money you get back is a REFUND.
Now to your question, if you want this money in the next 2-5 years, 1% in a savings or money market is probably your best bet.
If this money is only a small part of your savings towards your house then you would probably be okay if you wanted to invest. You just need to understand that you may have less when you go to pull it out. I personally wouldn't risk it.
The forms you file to the IRS are your RETURN. The money you get back is a REFUND.
Now to your question, if you want this money in the next 2-5 years, 1% in a savings or money market is probably your best bet.
If this money is only a small part of your savings towards your house then you would probably be okay if you wanted to invest. You just need to understand that you may have less when you go to pull it out. I personally wouldn't risk it.
First thing to do is change your withholdings immediately to stop loaning the government money. You have them an interest free loan for 18 months.
How much are we talking about here? Honesty I'd probably just pay your car note and move on. The savings aren't going to be enough to spend much time on.
How much are we talking about here? Honesty I'd probably just pay your car note and move on. The savings aren't going to be enough to spend much time on.
I had an LLC and paid quarterly estimated taxes, based on the previous years numbers. Usually in April, I have to pay an extra $20k, so don't think what I'm withholding is the problem. Basically, I closed shop and moved to a different city (with my new wife), and in the process, took a huge loss on the business. And even though I sold my house for a small profit, it was still a net negative (barely). So, according to my CPA, I had a total loss in 2015, and would get back all of the quarterly taxes that I paid, roughly low 6 figures.
re: Thoughts on what to do with unexpected tax return?Posted by OldeScratch04 on 11/18/16 at 8:45 am to pngtiger
hookers and blow
If you need the money available soon I definitely wouldn't buy a house. Even a flip you could get stuck with.
Honestly if you don't know what to do with it right now and you are set up pretty well, I'd just put it in a couple growth mutual funds or ETF's until you have a great use for it. You can always put Limit Orders on them so that if they go down by 5% or whatever they will sell to limit your losses short term.
Honestly if you don't know what to do with it right now and you are set up pretty well, I'd just put it in a couple growth mutual funds or ETF's until you have a great use for it. You can always put Limit Orders on them so that if they go down by 5% or whatever they will sell to limit your losses short term.
re: Thoughts on what to do with unexpected tax return?Posted by slinger1317 on 11/18/16 at 11:40 am to SLafourche07
quote:
The forms you file to the IRS are your RETURN. The money you get back is a REFUND.
As an accountant this is one of my biggest pet peeves. Makes my ears bleed.
Back to top
Follow TigerDroppings for LSU Football News