Horsham, PA (PRWEB) April 16, 2014
With millions of Americans having already received or soon receiving their 2013 tax refund, The Penn Mutual Life Insurance Company, a more than 167-year-old company, offers tips for getting the most out of your refund.
According to the latest IRS statistics from January 31 through March 28, 73 million tax refunds have already been distributed to Americans, averaging $2,831 per person. Instead of spending that large sum on a new TV, a vacation or a motorcycle, Penn Mutual offers these five ways to spend that tax refund more wisely.
Create an emergency fund. When some people are laid off or lose a job, it can sometimes take months to find new employment. A safe bet is for individuals to have at least six months’ pay set aside in an emergency fund.
Pay down debt. Instead of putting a tax refund toward a large purchase that creates more debt down the road, try using that money to get rid of current debt. Taking care of payments on a home, a car or other loan now will put more money in the bank later when the debt is paid down sooner.
Save for retirement. Retirement saving may get put on the back burner because of day-to-day financial obligations, but saving even a small amount each day, week or month should always be a priority. And putting that refund cash away in a retirement plan now gives it time to grow into a much larger sum in a few years.
Start a college savings fund. As the costs of higher education have skyrocketed well beyond the inflation rate, more and more young people are leaving college with massive amounts of student loan debt. Helping a child out by starting a college saving plan when they’re young will ease the stress of graduating in the 21st century.
Buy a life insurance policy. There’s no wrong time to buy life insurance – it’s central to any sound financial plan. Not only will permanent life insurance deliver peace of mind with its death protection, the guaranteed cash value accumulation can help pay you for future needs, such as a down payment for a house, funds to open a small business, or money to pay for a wedding.
About The Penn Mutual Life Insurance Company
Since its founding in 1847, Penn Mutual has been driven by our noble purpose to create a world of possibilities. At the heart of this purpose is the belief that purchasing life insurance is the most protective, responsible and rewarding action a person can take, and is central to a sound financial plan. The company is committed to helping families unlock life’s possibilities through life insurance and annuity solutions. This is accomplished through a national network of financial professionals, who help clients make great things possible. Penn Mutual supports its field representatives with brokerage services through Hornor, Townsend & Kent, Inc. Registered Investment Advisor and wholly owned subsidiary. Member FINRA/SIPC. Visit Penn Mutual on the Internet at http://www.pennmutual.com/.
©2014 The Penn Mutual Life Insurance Company, 600 Dresher Road, Horsham, PA 19044