Timothy Oatney, CPA MT’s Post

Tax Tip: Ideas for a Great Refund Three of every four Americans got a refund check last year according to IRS statistics. With a little planning, you can maximize the benefit of your refund. Here are some ideas: Pay off debt. If you have debt, a great spending priority can be to reduce or eliminate it. This is especially true if you have any credit card debt. With rate increases, credit card interest can cripple you financially. Start by paying down debts with the highest interest rates and work your way down the list until you bring your debt burden down to a manageable level. Save for retirement. Saving for retirement works like debt, but in reverse. The longer you set aside money for retirement, the more time you give the power of compound earnings to work for you. This money can even continue working for you long after you retire. Consider depositing some or all of your refund check into a Traditional or Roth IRA. You can contribute a total of $7,000 to an IRA in 2024, or $8,000 if you're 50 years old or older. Save for a home. Home ownership is a source of wealth and stability for many Americans. If you don't own a home yet, consider building up a down payment fund using some of your refund. If you already own a home, consider using your refund to start paying your mortgage off early. This is especially important if you have a recent mortgage with higher interest rates. Invest in yourself. Sometimes the best investment isn't financial, but personal. If there's a course of study or conference that would improve your skills or knowledge, that could be a wise use of your money in the long run. Give some of it away. Helping people, and being able to deduct gifts and charity from your next tax return, isn't the only benefit of giving to a good cause.  

Do you know how interest rate fluctuations impact everyday finances, mortgages and even your retirement accounts? Learn about the impact of interest rates and how to manage your debts during times of high interest rates in our latest blog: ➡️ https://717cu.pub/3vBSvZ6 #InterestRates

Need a Plan to Tackle Holiday Bills? January often brings a financial hangover, with credit card statements showing the true cost of the holidays. If you’re already carrying debt, it can feel overwhelming. That’s why a Personalized Paydown Plan might be the solution. If you have at least 20% equity in your home, you can use it to consolidate high-interest debt into your mortgage, saving you money overall. Here’s an example. Let’s assume you have a mortgage of $300,000 with $1,388 monthly payments, a car loan of $25,000 ($495/month) and credit cards totalling $30,000 ($600/month). In other words, a total debt of $355,000 with monthly obligations of $2,483. By refinancing into a $358,000 mortgage (including a small penalty fee), your monthly payments would go down to $1,887. A total savings of $596 per month! Now, let’s see what you can do with those $596: - Pay down your mortgage faster, by using your pre-payment privileges. This could reduce your amortization from 30 years to 18 years. - Invest in an RRSP, RESP, or TFSA to grow wealth and save on taxes. - Start a “holiday fund” to avoid financial stress next year. Refinancing isn’t for everyone, but we can explore other options if needed. Let’s review your situation and find the best way to ease your financial burden. Reach out today!

🤷♂️What does a 55-year-old do with a $600,000 inheritance? 📝 Details: 💰Income: $175,000 📦 RRSP room: $200,000 ☔️ TFSA room: $95,000 🏡 Mortgage: $200,000 with a variable rate of 6.7% 🗺️ Plan 💥 Pay off mortgage. They are now saving 6.7% a year in interest(or like they are getting a return of 6.7% as they avoid paying that to a finanxial institution each year). 👉 Max out TFSA 👉 Max out RRSP 👉 Invest the rest in a non-registered account 🧠 RRSP strategy: 🤩 Year 1: Claim $63,267 of RRSP contributions to bring them down to the next tax bracket. Leave the rest of the unused contributions for future years. 📅 Year 2: Contribute $31,560(new room) to the RRSP. Once again, only use enough contributions to bring them down to the next tax bracket. 🔁 Repeat this cycle until all the unused RRSP contributions are used up. 🚨 Note that they now have extra cash flow from eliminating mortgage payments and their tax refund(RRSP contributions) each year, which is used to fund the annual TFSA and RRSP contributions. 🚀 This plan allows them to get a big jumpstart in getting ready for retirement. #Inheritance #RRSP #TFSA

Being 'house poor' can limit your ability to build up retirement or other savings, pay off debt, travel or enjoy life. This blog talks about how budgeting can help you avoid that situation! #BearLakeListings #BearLakeHomes #BearLakeRealtor #IdahoListings #InterestRates Kbwsorensen@gmail.com 435.770.2001

Being 'house poor' can limit your ability to build up retirement or other savings, pay off debt, travel or enjoy life. This blog talks about how budgeting can help you avoid that situation! Beth Kerwin

Being 'house poor' can limit your ability to build up retirement or other savings, pay off debt, travel or enjoy life. This blog talks about how budgeting can help you avoid that situation! #enidok #enidrealestate #enidhomesforsale #homesforsale #jennysmithson #lippardrealty #enidrealtor #vanceafb #movetoenid #bestrealtorsenid

Being 'house poor' can limit your ability to build up retirement or other savings, pay off debt, travel or enjoy life. This blog talks about how budgeting can help you avoid that situation! #enidok #enidrealestate #enidhomesforsale #homesforsale #jennysmithson #lippardrealty #enidrealtor #vanceafb #movetoenid #bestrealtorsenid

Being 'house poor' can limit your ability to build up retirement or other savings, pay off debt, travel or enjoy life. This blog talks about how budgeting can help you avoid that situation! Heidi Hogan ☎️ 208.720.5466 heidi.hogan@coldwellbankersv.com #idahome #sunvalley #coldwellbanker

Being 'house poor' can limit your ability to build up retirement or other savings, pay off debt, travel or enjoy life. This blog talks about how budgeting can help you avoid that situation! Susan Van Poznak Keller Williams Town Life LetUsBeYourREVPS.com LetUsBeYourREVPs@gmail.com (c) 201-417-2851 #njrealestate #tenaflyrealestate #bergencountyrealestate