Viking Magazine - April 2013 - 43

moves you could make to prevent
pain in the future.
" This can help sharpen your
focus to look at that list when
the money comes in-rather
than getting that big-screen TV, "
says Lawrence.
Looking long term
When you get an infl ux of cash,
it can be smart to look at what
kind of buffer you've built up
for the unexpected. Make sure
you have money in an emergency
savings account.
Or, it may be time to add to a
college savings account, investment
or start an Individual
Retirement Account.
If it's too hard to be practical
with the whole amount, perhaps
divide up the money into
different chunks for different
purchases, suggests Lawrence.
Apply a percentage to the past
(to pay down debts), some for
current needs (a reasonable,
fun purchase) and some for the
future (an upcoming expense).
Getting the right outlook
Too often, families think of a
tax refund as a one-time gift.
" In their mind, they didn't
have to necessarily work for
it-although they did, " says
Lawrence. " Suddenly if feels
like a surprise-but it's certainly
not extra money at all. It gets
treated like a bonus when it's
really not. "
Lawrence cautions against
what she calls, the " it's only "
syndrome. Whether it's only a
$1,000 refund or it's only $3
for a gourmet coffee, looking
at the bigger picture you realize
expenses add up. " The idea of
'it's only' becomes very signifi -
cant. That kind of dismissive
thinking is a good indicator of
how you are managing your
fi nances, " she says. " Then you
are probably missing out on an
opportunity, or your money is
trickling away. "
Plan for your needs and wants
so when extra money comes in,
you are intentional about the
way you use it. " Know what
your style is and be mindful
about it, " she says.
Scott
Schiermeister
Financial Benefi ts
Counselor
➝ Lives in Spokane,
Wash.
➝ Enjoys boating and
water activities with
his family
➝ Enjoys target
shooting
A typical reaction to
getting a tax return
is that families want to
spend it. If they are in
that habit, I talk to them
about how to change
that. I often use a Fact
Finder to get an idea of
their individual situation,
because things change
from year to year.
A grand for a young
family is a lot. I help
them understand if they
put that money aside at
a young age, time is a
factor that can work for
them. If they have no
life insurance, they could
put $500 toward a term
policy for protection and
$500 toward savings-a
good habit they can build
on, adding a few bucks
here and there.
Someone with older
kids may want to use
the money to buy a
years-worth of books for
college. It can also be a
good amount to invest
in a traditional or ROTH
Individual Retirement
Account or an annuity.
With a $1,000, it's not
a great amount, but it's
important to see the big
picture and get on the
right track. I instill the idea
of planning so when they
get their tax refund, they
think about how they can
be smart and add some
to their investment or
savings accounts.
The Internal Revenue
Service issue refunds to
many taxpayers in as few as
10 DAYS
for those who e-fi le and
select direct deposit.
The IRS issues more than
90 percent of all refunds within
21 DAYS
The best way to get information on your refund is
through the " Where's My Refund? " tool on IRS.gov and
the IRS2Go phone app.
sonsofnorway.com VIKING APRIL 2013 43
http://www.IRS.gov http://www.sonsofnorway.com
Viking Magazine - April 2013

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