I finally managed to file our tax returns and since we used Netfile, we can expect our refund within the next two weeks. It is always nice to have a lot of money in the bank account and wonder what to do with it. This year, that decision is pretty easy for us: we are going to use the refund to pay off an auto loan that we took out last year to buy a mini van. It will be nice to (again) have no consumer debt other than a small mortgage outstanding.
Here are some ideas for your refund (in decreasing order of preference) other than spending it:
- Pay off credit card debt.
- Pay off consumer loans like car loans or lines of credit.
- Get a head start by contributing to your RRSP now (or) Make a pre-payment against your mortgage principal.
- Invest in a diversified portfolio in your taxable account.
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1 response so far ↓
1 Aditya Kumar Singh // Apr 20, 2006 at 8:40 am
hello sir,
I really like your blog. please visit my new blog on “Successful investing”.
http://indiamf.blogspot.com
regards
Aditya
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