‘Have a plan;’ Financial center CEO details importance of knowing what to do with tax refunds

Tax Day is just weeks away, but millions of Americans have already filed and are starting to get refunds.

News Center 7′s Consumer Report Xavier Hershovitz has some tips on what to do with your refund.

Outlook Financial Center of Troy, CEO Rob Burnette explains why it’s important to turn to an expert during this time.

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“There’s so much misinformation out there that it really, sometimes, makes the job very challenging,” Burnette said.

One thing many people think about during tax season is the possibility of a refund.

Burnette recommends that you don’t spend your money on during a shopping spree.

“Have a plan for a refund. I almost don’t care what the plan is, as long as you have one short of, we’re just going to go blow it,” Burnette said.

For many, it’s a chance to catch up on a few things.

“Maybe if he’s got credit cards, pay down some credit cards with part of it, maybe increase your retirement savings with part of it,” Burnette said.

But, he said as long as you have a plan, it’s okay to have some fun.

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“I don’t have a problem with keeping part of it for having fun. Okay, you earned it,” Burnette said.

If you have a large refund, Burnette said you should do some homework and understand what a tax refund is.

“What you have essentially done is given the federal government an interest-free loan for a year, and then you have to file and beg for it back. I don’t like that,” Burnette said.

If you are constantly using your refund to catch up on areas you’re behind, Burnette said you should take a look at your deductions.

Adjusting that can put more money in your pocket monthly instead of that lump sum once and year.

“Let’s not get behind in the first place by making sure we’re properly withheld that we have the cash flow every month to meet our specific needs,” Burnette said.