Here are our top 5 strategies for investing your tax return

Regardless of the amount of your tax return, we suggest you consider these 5 strategies before spending it.

1- Pay off high interest debts: If you have high interest debts like credit cards or personal loans, use your tax return to pay them off. By paying off these debts, you can save a lot of money on long-term interest and improve your credit score.

2- Invest in long-term savings accounts: Use your tax return to invest in long-term savings accounts such as RRSPs (Registered Retirement Savings Plans) or TFSAs (Tax-Free Savings Accounts). This will help you save money for your retirement and reduce your future taxes.

3- Make advance payments on your mortgage: If you have a mortgage, use your tax return to make advance payments on your loan. This can reduce the total cost of your mortgage by reducing interest and shortening the term of your loan.

4- Invest in education: Use your tax return to invest in your or your children's education. This can help you improve your job skills and increase your income in the long run.

5- Establish an emergency fund: Use your tax return to establish an emergency fund. This can help you deal with unexpected expenses, such as car repairs or medical expenses. By using these strategies, you can use your tax return effectively to improve your long-term financial situation. It's important to take the time to plan how you will use your tax return before you spend it, in order to maximize its potential and reach your financial goals.

If you need our help, do not hesitate to contact us to get our best advice on your situation.