{"id":106874,"date":"2021-03-05T00:42:57","date_gmt":"2021-03-05T00:42:57","guid":{"rendered":"http:\/\/evertise.net\/?p=8494"},"modified":"2021-03-05T00:42:57","modified_gmt":"2021-03-05T00:42:57","slug":"smart-ideas-for-what-to-do-with-your-2021-tax-refund","status":"publish","type":"post","link":"https:\/\/ipsnews.net\/business\/2021\/03\/05\/smart-ideas-for-what-to-do-with-your-2021-tax-refund\/","title":{"rendered":"Smart Ideas for What to Do With Your 2021 Tax Refund"},"content":{"rendered":"

<\/span><\/p>\n

There is at least one nice aspect to submitting your tax return: the possibility of obtaining a tax refund.\u00a0According to data from the Canada Revenue Agency, just over half of the approximately 25 million tax returns received in 2017 were eligible for an average refund of $ 1,670.<\/p>\n

If you receive a refund, you must decide what to do with it.\u00a0It can be tempting to spend it on the spot.\u00a0Who wouldn\u2019t want a trip, a new car or a brand new kitchen?\u00a0However, it\u2019s important to consider all of your options, such as paying off debt or saving for the future.<\/p>\n

Whether you\u2019re early in your career or about to start a family, or saving for a home, here are some ways to use your refund wisely.<\/p>\n

    \n
  1. Pay off your debts \u2026 especially those with high interest rates<\/strong><\/li>\n<\/ol>\n

    According to a survey conducted by Global News in late 2017, the demographic struggling with the most debt is Gen X (the 35-54 age group).\u00a0Its members say they have debts of $ 10,000 on average, and that\u2019s not counting their mortgage.\u00a0This includes credit card debt, which can carry interest rates approaching 20%.\u00a0At this rate, monthly payments can put a huge dent in a budget.<\/p>\n

    The Tax Refund Loans Online offers advice on how to\u00a0tax refund loans bad credit<\/strong><\/a>.\u00a0She recommends paying off debts with the highest interest rates first, like payday loans and credit card balances.\u00a0By doing this, you will pay less interest and have more money to reduce your overall debt.<\/p>\n

    Once you determine which debt to tackle first, you can define a strategy for paying it off.\u00a0Many Canadians have mortgage debt.\u00a0FCAC suggests a variety of strategies to help you pay off your mortgage faster, such as lump sum or increasing your regular payments.<\/p>\n

    Is it better to invest your money or use it to pay off your debts?\u00a0The debate on this issue is not new.\u00a0In fact, the choice depends on the prevailing interest rates, the amount of your debt and your financial situation.\u00a0Online calculators can help you determine if reducing your debt is the right choice for you.<\/p>\n

      \n
    1. Saving for retirement<\/strong><\/li>\n<\/ol>\n

      The statistics confirm it: Canadians are not saving enough for their retirement.\u00a0Government programs like the Canada Pension Plan, the Quebec Pension Plan, and Old Age Security will provide a basic income for many Canadians when they retire, but you must consider your own needs and wants to determine how much. Additional amount you will need to accumulate.<\/p>\n

      The good news, however, is that the sooner you start saving, the longer the value of your investments can grow, thanks to smart choices?<\/p>\n

      The most popular retirement savings option is the Registered Retirement Savings Plan (RRSP).\u00a0It allows you to make contributions each year without having to pay tax on them until you withdraw money from your (at a lower tax rate, hopefully).\u00a0In fact, your contributions can increase your tax refund.<\/p>\n

      Another great choice for long-term savings is the Tax-Free Savings Account (TFSA), since any capital gain that accumulates in it is not taxable.<\/p>\n

      Fortunately, there are plenty of options for saving for retirement.\u00a0Canada Life offers a wide range of investment and savings solutions, including mutual funds and comprehensive retirement programs.<\/p>\n

        \n
      1. Save for other long-term goals<\/strong><\/li>\n<\/ol>\n

        Beyond the long-term goal of retirement, there are plenty of other reasons to save.\u00a0FCAC recommends that Canadians set up an emergency fund to deal with unforeseen events, such as the loss of a job or a medical emergency.\u00a0This can be done slowly, with small weekly contributions put into a separate savings account.\u00a0You can also use part of your tax refund to set up an emergency fund, which you can grow over time.<\/p>\n

        The same can be done to achieve other savings goals, such as a wedding or a down payment for a home.\u00a0You can set aside a portion of your tax refund and then add small, periodic contributions to achieve your goal.<\/p>\n

          \n
        1. Saving for a child\u2019s education<\/strong><\/li>\n<\/ol>\n

          If you are pregnant or are the parent of a newborn baby, you have probably already thought about the costs of their education.\u00a0The average tuition fee for a year of undergraduate university studies in Canada was $ 6,571 in 2017, according to Statistics Canada.\u00a0In addition, overall tuition fees are expected to continue to rise.\u00a0Fortunately, there are government programs that can help you save for your children, the most popular being the Registered Education Savings Plan.<\/p>\n

            \n
          1. Take out life insurance<\/strong><\/li>\n<\/ol>\n

            If you have young children or are about to have them, you should consider purchasing life insurance if you haven\u2019t already.\u00a0According to a recent survey conducted by investment firm Edward Jones, less than a third of Canadians have insurance protection against life contingencies, such as death or critical illness.<\/p>\n

            However, such protection is important.\u00a0You probably want your children to have financial security if the unthinkable should happen to you or someone responsible for your children.\u00a0The two most common types of life insurance are term life insurance \u2013 a more economical option that covers the insured for a defined period of time \u2013 and participating whole life insurance \u2013 which offers protection along with opportunity to accumulate cash value in the policy on a tax-efficient basis.<\/p>\n

            The post Smart Ideas for What to Do With Your 2021 Tax Refund<\/a> appeared first on Evertise<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

            <\/span>There is at least one nice aspect to submitting your tax return: the possibility of obtaining a tax refund. According to data from the Canada Revenue Agency, just over half of the approximately 25 million tax returns received in 2017 were eligible for an average refund of $ 1,670. If you receive a refund, you must […]<\/p>\n

            The post Smart Ideas for What to Do With Your 2021 Tax Refund<\/a> appeared first on Evertise<\/a>.<\/p>\n

            Continue Reading →<\/span><\/a><\/p>\n","protected":false},"author":272,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,57],"tags":[],"class_list":["post-106874","post","type-post","status-publish","format-standard","hentry","category-content-marketing","category-ips"],"yoast_head":"\nSmart Ideas for What to Do With Your 2021 Tax Refund - Business<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ipsnews.net\/business\/2021\/03\/05\/smart-ideas-for-what-to-do-with-your-2021-tax-refund\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Smart Ideas for What to Do With Your 2021 Tax Refund - Business\" \/>\n<meta property=\"og:description\" content=\"There is at least one nice aspect to submitting your tax return: the possibility of obtaining a tax refund. According to data from the Canada Revenue Agency, just over half of the approximately 25 million tax returns received in 2017 were eligible for an average refund of $ 1,670. 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