900 N. Kings Highway, Cherry Hill, New Jersey 08034
856.667.4100 ·
215.563.0276 ·
Fax: 856.667.3652
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Financial Planning |
The average federal tax refund for 1999 tax returns was over $1,600.
This is a tidy sum for many households. So, will the money be put to good use? Or will the money be quickly spent
and the euphoria of a refund be gone and forgotten in a matter of weeks?
What can $1,600 do for you if it is properly invested? Let's suppose you are 25 years old and are willing to invest
these funds for your retirement. If your investment made an annual return of 8%, you would have over $34,000 at
age 65. That is not bad, and it beats spending the refund on a consumer item that has little future value.
What if the $1,600 was just your seed money? Suppose you invested $1,600 every year until age 65. If you assume
the same 8% return, you would have over $400,000 at retirement time.
It is never too late to start investing for retirement. You may want to consider an automatic payroll deduction
that goes directly to an investment account. You can start small, but you should work your way up so that you are
saving at least 10% of what you earn.
Some people feel that they need a large sum to get their investment program started. Nothing could be further from
the truth. There are numerous institutions, mutual funds, and brokerages where you can start with your first payroll
deduction as your opening balance.
Unless you want to retire broke, now is the time to get started on an investment program. Investing this year's
tax refund is a very good way to begin.
If you would like assistance with any of your financial concerns, please contact us. We are here to make your financial
life a little easier.
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