$15k tax return. What to do?

[jonlv]

@princessoflight I’ve never seen a 15k return in my life! My goodness. I always owe.

HYSA or ROTH max. I asked a similar question yesterday and I selected the Roth

 

[resjudicata]

@princessoflight I have never heard anyone saying "I don't know what to do with this money."

If I had a 20 y/o car, I would buy a car yesterday, but that's just me as I always drive new cars and trade them in before the warranty expires.

You have a home loan? Pay it off, if you feel like doing it.

If you are happy with that old clunker car and the way your finances are right now, go on vacation and enjoy life, spend money on something you like or put it in a regular savings account until you really know what you want.

 

[damian1690]

@resjudicata This is not great advice as you’re just paying the depreciation and high excise tax on a new car.

 

[resjudicata]

@damian1690 By driving new vehicle with a bumper to bumper warranty I never have to worry about repair cost. I would never get a loan for a car or anything, I am not making the banks richer than they already are. In fact I even have my checking account with a bank that pays me interest on my money. I do not carry any credit card balances either. Banks do not make a dime in me.

 

[resjudicata]

I'm genuinely curious what the cost breakdown looks like for always getting new cars this way.

I'm not saying you shouldn't do it because I'm guessing it's also sort of a hobby. That said, it's hard to imagine this method being less costly than say, just for example, buying a reliable car every 8 years.

 

[goosie22b]

@princessoflight Buy a 90's truck from Arizona or somewhere dry.

 

[princessoflight]

@goosie22b that is certainly a thing I could do. i won’t, but i could.

 

[jmount78]

@princessoflight if you don't have a roth IRA, start one and dump $13,500 into it

 

[psalm84]

@jmount78 I agree, then add another 5,000 to the emergency fund and take a vacation.
Oregon is great but go somewhere, see another part of the world.

Anything left over keep in a hysa and use it for a down payment on a car one day.

 

[biskers]

@princessoflight Double up on some mortgage payments when you can and save the rest.

 

[jkcombes]

@princessoflight Car. Pay down mortgage. HYSA.

Looks like you have your head in the right place. So many other people at 26 would book a trip to Australia before the refund check even hits the checking account.

 

[resjudicata]

@princessoflight Pay someone to teach you how to do taxes. You didn’t get a refund. You loaned the government 15k, interest free, and got your own money back with nothing to show for it.

 

[williamson]

@princessoflight As a long term person, I can assure you that the time will come when you DO need this.

 

[princessoflight]

@williamson of course. that’s why i’m asking the question.

 

[garfus]

@princessoflight Get a car. You need it to get around.

 

[bcathey]

@princessoflight What does kicker mean? I’d invest some of the money in the stock market, put some in a HYSA, and buy some bonds or CDs..let the money grow now while you don’t need it so down the line if you do, then it is there and grown

 

[selene03]

@princessoflight Roth IRA, invest, take 20% to mess around with

 

[jasonvr]

@princessoflight Buy the car if you feel like your car is too old already, if you don’t mind having the old car the maybe go on a nice vacation. If you don’t care for vacations or anything else then just invest the money in a brokerage account and the investments will depend on time frame risk and investment objective.