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Like many people I hate paying taxes. I also try very hard to not set things up so that I get a large refund check; a large refund means that you have allowed the government to use your money for free all year.
Because of mitigating circumstances, this year I'll have a large tax refund check. Like many people there are many places I could put the money. What I would like to do with it, what I should do with it and what I will do with it are all entirely different things.
I would like to spend it on a trip to go SCUBA diving in the Cayman Islands. I could really use a beach vacation right about now. I would love to spend my tax refund on a week or two relaxing on the beach, eating seafood and diving whenever I want in the warm and sunny weather. That sounds wonderful.
I should either save or invest the money towards my future retirement. With the economy being the way that it is my retirement fund has taken quite a blow these past few years. My tax refund check would be a nice addition to either that account or to pad my savings account.
But I will end up doing with it is paying off bills and a couple of credit cards. In the long run it's probably a better financial move than investing or saving it. It's not as much fun as a vacation but it is the more responsible solution.
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