Laser Focus World is an industry bedrock—first published in 1965 and still going strong. We publish original articles about cutting-edge advances in lasers, optics, photonics, sensors, and quantum technologies, as well as test and measurement, and the shift currently underway to usher in the photonic integrated circuits, optical interconnects, and copackaged electronics and photonics to deliver the speed and efficiency essential for data centers of the future.

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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

4 Ways Financial Professionals Recommend You Spend Your Tax Refund

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SPONSORED CONTENT -- (StatePoint) Receiving a tax refund this year? While it can be tempting to impulse spend, if you want to really treat yourself, financial professionals recommend using the payout for practical expenses.

According to CERTIFIED FINANCIAL PLANNING® professionals, here are smart ways to spend your tax refund that will improve your life:

1. Build an emergency fund: Unexpected circumstances, such as illness or job loss, can leave you with more bills and less income. Not having an emergency fund puts you at risk of having to take on high-interest debt to meet expenses. Use your tax refund to create some peace of mind for yourself and your family. And now that you’ve started the emergency fund, consider using direct deposit to funnel a portion of each paycheck into this account.

2. Reduce debt: Paying down debt can feel like an insurmountable challenge. And if it’s a challenge you’ve been avoiding, you can use your tax refund to kick-start your journey. Not sure where to start? A CFP® professional can help you identify which debt to prioritize first, as well as help you craft a repayment strategy moving forward.

3. Save for retirement: No matter your age or stage in life, a tax refund offers a great opportunity to give your retirement account a boost. Thanks to compounding, the money you set aside today in an investment account, such as a 401(k) or Roth IRA, will exponentially grow between now and when it’s time to tap your nest egg.

4. Set financial goals: From planning a vacation or wedding to becoming a homeowner, your goals are worth investing in. Put your tax refund toward something that matters to you.

The best thing you can do may be avoiding future refunds. While it feels great to receive a big check during tax time, a tax refund is effectively an interest-free loan you have made to the government. You’re much better off keeping more of your money throughout the year so you can invest it or use it on things you need. Consult a CFP® professional on how to adjust your withholdings to get closer to breaking even next year.

For more tax season tips and to find your CFP® professional, visit LetsMakeAPlan.org.

With an actionable plan and the help of a qualified financial professional, you can ensure your tax refund is put to good use.

Photo Credit: (c) AaronAmat / iStock via Getty Images Plus

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