Comments on: What should I do with tax refund? – Ask The M-Network

By: * Weekly Highlights: April 5, 2009

* Weekly Highlights: April 5, 2009 — Wed, 08 Apr 2009 02:07:53 +0000

[...] M-Network articles this week:Should I Raid the 401(k) to Buy “Safe” Assets? at Cash Money LifeWhat should I do with tax refund? at Gather Little By LittleWe are always looking for more reader question, so please feel free to [...]

By: DDFD at DivorcedDadFrugalDad.com

DDFD at DivorcedDadFrugalDad.com — Sun, 05 Apr 2009 12:01:00 +0000

I’m in the “Thirds Camp”. One third debt relief, one third saved, and one third splurged– hopefully on a time and money saver.

By: tom

tom — Sat, 04 Apr 2009 02:39:42 +0000

@Doug T
Are you coming on here trying to give us a sales pitch?
And really, what kind of control do you have with mutual funds? Besides how much money you give to whoever who claims to do a good job with it.

Also, what if the person loses a job and has bills to pay? They can either borrow or borrow from their retirement savings. So they got a choice between borrowing and paying interest or withdrawing funds and paying a penalty and possible taxes.

And you call this sound advice?

By: Doug T

Doug T — Fri, 03 Apr 2009 19:29:26 +0000

My advice is both pertinent and quite simple. Certainly get those credit cards paid down dramatically (after all they are the root cause of your current debt situation) and start investing wisely in this bottomed out market place. My web page offers investment strategies that work and the best sectors of the market to be invested in. When you are invested in mutual funds and take control of these funds, many options are available including monthly redemptions if and when that option becomes necessary.

Doug T….The mutual fund guy

By: tom

tom — Fri, 03 Apr 2009 18:41:41 +0000

Ok 1000 emergency fund does not work for everyone. I live at home and 1000 for me is not enough because my monthly expenses almost top 1000.

I say they should strive to have 6-12 months of savings. Meaning take whichever figure between 6 and 12, times your monthly expenses to determine your emergency fund.

Clearly anything can happen in this market.

Paying off debt works if you have little obligations, but what are you doing to do when you pay off one debt and now you lose your job or a big unexpected maintenance is needed? You go back to borrowing money.

By: glblguy

glblguy — Fri, 03 Apr 2009 17:03:31 +0000

Lori, don’t be too judgmental, all of us are in different situations.

By: Kacie

Kacie — Fri, 03 Apr 2009 16:57:14 +0000

I agree with the people who are saying to build up that emergency fund. You’ll be up a creek if you’re hit with even a small emergency.

A severance package can’t be guaranteed in this economy. I don’t know what industry he’s in, but it seems no one is truly safe right now.

Don’t bother with investing at all right now. Clean up your debt first, and then saving for retirement becomes a good thing to do. With your income, it sounds like you’ll be out of debt soon, so you’ll be able to save for retirement soon enough.

By: Jody

Jody — Fri, 03 Apr 2009 16:43:51 +0000

Put it all in an emergency fund to be a safety net if your husband loses his job….there has already been one round of layoffs at his company so there is a really high chance that there could be more. Frankly, I would then add more money to your emergency fund – ideally 8 months of living expenses if you were to both lose your jobs. Then go after the credit card debt until it is gone and then look at retirement savings.

Don’t count on being able to use a HELOC or credit cards to bail you out in case of a job loss…credit is being cancelled left and right so you may not have these are your disposal when you need them and who wants to be accruing debt at such a vulnerable time.

Having a large emergency fund in this economy is truly the way to go.

By: Friday Quotables - Colds Stink Edition | StretchyDollar

Friday Quotables - Colds Stink Edition | StretchyDollar — Fri, 03 Apr 2009 16:10:38 +0000

[...] Gather Little by Little – What Should I Do With My Tax Refund? “Hi, we recently finished our taxes and will be getting back a 13K refund (part of it is the first time home buyer’s credit which I realize is more like an interest free loan). We want to know what the smartest thing to do with the money is in these tough economic times.” [...]

By: lorishaneck

lorishaneck — Fri, 03 Apr 2009 15:56:19 +0000

ARE YOU KIDDING ME? A $13,000 refund and $8500 monthly take home pay?
You shouldn’t have any money worries with that kind of money. I work at walmart and my husband just got bumped down to part time at his job(so that he can keep his insurance). We have to pay state and federal taxes every year and we both claim zero. We are doing okay, but we owe quite a bit on past medical bills and back taxes. We don’t have any credit cards. You people crack me up-you can’t tell when you are blessed. Maybe you are praying to the wrong God.