With visions of H&R Block commercials ringing in our ears, we thought we would share some ideas on smart ways to spend your tax refund dollars. While there are certainly many things you can choose to do with your refund from taking a vacation to saving for a rainy day, we thought we would put the focus on things that can give you added peace of mind.
Protect Yourself from Liability
If you don’t already have a Personal Umbrella Insurance Policy, this is a great way to spend your refund! This type of policy gives you coverage above the limits of your homeowners and auto insurance policies in the event that someone is injured by your car or in your home. If you want more information regarding liability insurance and how it can benefit you, feel free to check out Denise Koslowsky’s Umbrella Day blog post on the subject.
Make Sure Your Home and its Contents are Safe
Everyone has a homeowners policy, however, there are often limits on the coverage it provides that can leave your valuables vulnerable. A little extra cash from a tax refund can go a long way to help protect your home and the items it contains.
In terms of insurance products, consider a Personal Valuables Policy. If you are a collector of jewelry, art or silverware, the value of your collection often exceeds the limits of your homeowners policy.
Additionally, even if your home is not in what is considered a high-risk flood zone, with some extra money in your pocket, the extra protection of a Flood Insurance Policy is worth the added expense.
We’d also like to offer a list of things you can do to protect your home that have nothing at all to do with insurance. In the event of a weather related event, it may be worth spending your refund check on:
- A generator
- Hiring an arborist to trim back trees and/or branches that could cause damage to your home.
- The installation and purchase of a sump-pump if your basement is prone to flooding.
- Bringing in a landscaper to help with grading and other drainage issues that often occur during storm season.
Give to a Worthy Cause
Why not use the money from your return to help someone in need? Making a donation to a worthy cause will not only provide you with a tax deduction in the coming year, it will also make you feel good about yourself. What offers more peace than that?
At Advocate, we want to bring our clients information that helps make their lives easier and when we can, offer a little peace of mind. If you want additional information on smart uses for your tax refund, check out the inspiration for our article at kiplinger.com: