Doing Our Future Selves a Favor

Well, I had a biopsy today because we found a lump. So maybe I’m not cancer free.  But, this lump didn’t change any of my financial plans.

Let’s talk for a few minutes about one of the greatest gifts you can give your future self: a retirement fund.

It’s tax season and people are just itching to use their refund on something: a new car, a night out, vacation, debt payments, maybe. Do you know what I did with my refund?  I opened up an IRA. Do you know what my Old Man did with his refund?  He put it in an IRA that I asked him to open last year.

**Disclaimer: My refund is usually small but this year for a variety of reasons, it was much larger than I anticipated.**

Did you know that adding money to a traditional IRA can give you a larger refund (this was one of my reasons)?  But just because you can get a bigger refund doesn’t mean a traditional IRA is the way to go.  A Roth IRA won’t get you a bigger refund, but you won’t have to pay taxes on it later when you do retire. I encourage you to look at some online calculators to decide which is better for you.

For 2015, you can still contribute up to $5,500 to any IRA. I know you may not have that money in the bank, which is why I encourage anyone who doesn’t need to pay off a debt with their refund to put the money in an IRA. I use Vanguard because of their low fees.

I also encourage everyone to adjust their withholding to get a smaller refund because you do more with that money in your pocket every month than you can by giving the government a 0% interest loan.

So do your future self  favor, use your refund to pay off a debt or save for your retirement account. You will appreciate it much more in the long run than a fancy television or vacation.



About His Polish Princess

I'm an engineer by day and an entrepreneur by night. I live with my Old Man, and our cat, Junior. Okay, so the cat is mine, not ours. I have some old fashioned opinions and I believe the unlikely can be achieved with hard work and a little bit of luck. I like cars and motorcycles and remodeling houses and taking risks. I love my family and my community in Small Town, USA. I believe life is one grand adventure that should be lived and thoroughly enjoyed. In 2013 I was diagnosed with an autoimmune disease and focused on natural healing. Fortunately, my disease has been in remission since 2014. In 2015 I was diagnosed with Hodgkin's Lymphoma. These things are just a road bump in life. They won't stop me from remodeling or buying houses or starting new ventures. Life is all about how you see it.
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