River Valley Coaching

by Dave Ramsey

Be a smart investor. Use your tax return to pay off debts, build an emergency fund, or invest in a Roth IRA.
Millions of Americans overpaid Uncle Sam in 2007 and will get a tax refund this year. If you’re one of them, don’t be like everyone else and spend it on things that are here today and gone tomorrow! Do the smart thing and use it to build wealth.

Here are 3 of the best ways to use your refund:

1. Pay off debt.
   If you follow my plan, you should have already paid off all of your debts (except your house) before you started investing. If you haven’t, you’re costing yourself hundreds or thousands of dollars in interest payments! That’s money better spent invested in mutual funds! Do yourself a favor and use your refund to payoff any unpaid debts.
2. Build your emergency fund.
   Investing without an emergency fund is asking for trouble. Money magazine says that 78% of us will have a major emergency within the next 10 years. Without an emergency fund, you’ll be forced to pay using either credit or by taking money out of your investments. Doing either one will set you back years in reaching your investment goals.If you are investing, you should already have a 3 to 6 month emergency fund. If not, use your refund to start one or to beef up your current emergency fund.
3. Invest in a Roth IRA.
   This is the fun stuff – actually investing your return to build wealth! A Roth IRA will allow you to invest up to $5,000 per year, per person. There are some limitations due to income and situation but most people can invest in a Roth IRA.Let’s say you made a one-time investment of $5,000 in a Roth IRA. Now let’s assume you didn’t touch that investment for 18 years and it earned an average return of 12% (the stock market average). At the end of 18 years, that one-time investment would be worth over $42,000!

Dave Ramsey is one of Kirk’s most influencial mentors. He has a Nationally Sindicated Radio Program, The Dave Ramsey Show, with over 3 million listners. He has dedicated his life to educating individuals about financial matters that really do matter.

Contact River Valley Coaching to find out about taking Dave Ramsey’s FPU Class ~ Financial Peace University or Call today for a FREE 30 Minute Financial Consultation.