Refund Anticipation Loans Are Not Wise!

Good morning!

If you live paycheck to paycheck, like the majority of Americans, you really look forward to your tax refund.

I’m a big proponent of investing at least 20% of your refund in the stock market.  But the reality is that most people’s tax refund will go to catch up on past due bills or some other “emergency”.

Many tax services, such as H&R Block, will offer you the opportunity to get your refund immediately.  Now if you’re in a financial bind, I understand why you might do it.  But it’s not wise.

Let me explain.

You work all year for this tax refund.  This is your money coming back to you.  If you opt to receive a refund anticipation loan, you’re going to pay interest on the money you’ve earned over the last 12 months.  That makes absolutely no financial sense at all!

Decisions such as taking out a loan against your tax refund have contributed to your poor financial situation in the first place.  Start making good choices.  Be patient enough to wait to receive your full refund.


My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)


Take 20% Of Your Refund And Buy A Damn Stock!

Fact: your wealth is determined by just 20% of your take-home pay.

You can earn a million dollars a year and be broke.

I know that’s hard to believe, but it’s true.  If you make $1,000,000 before taxes, bring home $600,000, and owe $2,000,000, you are essentially bankrupt.

For many of us, getting that seed money to make your first investment can be a challenge.  That’s why it’s imperative this year that you take 20 percent – just 20 percent -of your tax return and invest it.

What if you took $200 and bought any of the following stocks 10 years ago?  Here’s what that investment would be worth today:

Apple (NASDAQ: AAPL): $2,112

Amazon (NASDAQ: AMZN): $4,977

Netflix (NASDAQ: NFLX): $13,400

Now, is there a possibility that you could have chosen a stock that lost money?


However…the focus here is on what could go right as opposed to what could go wrong!

*  The Stock Market is For Everyone, Eric Milton’s short guide to stock market investing for beginners, is available in e-book and paperback formats.  If you like what you see on this blog, we hope you’ll take a moment to purchase and read the book, let us know what you think via a blog comment or Amazon review, and share this information with others!  Thank you. *