Quote:
Originally Posted by Fire Me Boy!
As opposed to giving it to the bank for record low interest rates? It's a wash.
Don't care, though, honestly. It's forced savings for me, and at the end of each year I get a fat check the wife and I can use to fritter away on something we want but don't need.
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Quote:
Originally Posted by sedated
I don't think the people touting the "its a mistake to get a refund" thing are putting it in a savings account for 1% interest. They invest in something with a higher return.
I can see the benefit - profit off the money rather than letting it sit around doing nothing. But I know nothing about investing so haven't tried it.
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It would take a pretty extreme situation for it to matter a lot. If Option A is to get a $6k refund and Option B is to invest $500 per month at 10% interest (which would be REALLY good for a conservative investment), you'd end up with about $6300 at the end of the year (in very rough numbers). So your best case scenario is making an extra $300, and for most people, it'd probably be closer to $30.