Tax season is just about here! Are you expecting a refund this year? If so how do you plan to use it? I’d like to offer some suggestions to maximize your anticipated tax refund. This is a good time because the IRS won’t start accepting returns electronically until January 27, 2020. So here we go…
The first thing you want to consider is that there are only four ways to make money in this country. Yes, only four ways, that is correct, here they are:
Profits from business
Paper or digital assets
So if you are anticipating a refund, you should consider investing in one of these four areas. Maybe for you that is taking your refund and buying a rental property or shares in a REIT (real estate investment trust). Either of these can cause you to change your financial future if you do your research. If you think your refund isn’t large enough to invest in real estate, consider joint venturing with like-minded people and invest in real estate together.
You may want to consider investing in a franchise or another type of business. You don’t have to necessarily operate the business, just invest. Do your due diligence when investing in a business. Everything looks and sounds good during a presentation, but be sure to “kick the tires” before you invest your money.
Paper or digital assets would consist of everything from stocks and bonds to mutual funds and crypto. Each of these can be viable investments depending on your situation. Again do your due diligence, don’t feel pressured to jump into anything until you do your research and have a level of comfort.
Commodities are goods or materials that can be exchanged for revenue. A commodity could be gold, silver, minerals, a piece of property, timber or specialized information. Do you have a commodity? If so, you may want to use some of your tax refund. Examine what you currently have in your control, determine if there are any commodities, then find out what you need to do to exchange the commodity for revenue. For instance, I have a client who has a great deal of property in the south with many trees on the property. Timber is a commodity. If the land has minerals in the ground, those minerals are commodities. Both the timber and minerals can be exchanged for revenue.
We should make every dollar count and this is a good way to change the dynamics of your financial future. Which of these four will you use your tax refund on to maximize your refund? Let me know!