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About That Refund

Personal Finance
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Nearly 122 million Americans received tax refunds amounting to more than $736.2 billion in 2020.1 Are you expecting a refund this year? If so, chances are you’ve already wondered ”What should I do with my refund?“

You are not alone. It’s common for tax refunds to be put into savings, used to pay down debt, spent on a major purchase, or even put towards a vacation—probably all things you’ve considered.

It’s important to remember this: a tax refund is not a bonus. It’s money the government borrowed from you for a while, interest free, and is now being returned. While paying down debt and planning a trip may be good ideas, here is another to consider for your refund.

Create an emergency fund.
It doesn’t sound exciting, but neither is not having money saved for an emergency, and going into debt because of it. By saving your refund for an unexpected financial event, you can be more prepared for sudden expenses. Consider placing the money where you can earn interest, allowing the value to increase over time, like an AGFinancial Demand Certificate.

The past two years have shown us how life can change literally overnight, and in the most unimaginable ways. An emergency fund may be a stark contrast to the beach photos posted on social media feeds, but it may be more appropriate for your financial situation than having your toes in the sand.

1IRS Fiscal Year 2020

This is not an offering to sell securities referred to herein and we are not soliciting you to purchase these securities. The offering is made only by the Offering Circular which includes risk factors. The Offering Circular may be obtained by writing or calling AGFinancial or by clicking here. An investment in AGFinancial involves certain risks that other investment options may not have. Not all risks can be quantified or compared to other investments. You should carefully evaluate all the risks in assessing the potential benefit of the various investments. AGFinancial investments are offered and sold only in states where authorized or exempt from authorization. Not available to new investors in Washington. Not available in Ohio. AGFinancial is an affiliated entity of AGFinancial.

Not FDIC or SIPC Insured. Not a Bank Deposit. No AGFinancial Guarantee.

This information is not legal or tax advice. Information is from sources deemed reliable. Information is subject to error, omission, withdrawal, or change. Contact your own tax advisor before taking any action that would have a tax consequence.

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