A Taxing Decision: What to do with your refund

 

Wednesday, Apr 15,2009, 11:29:23 AM   Click:

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Source: PR Newswire U.S.
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Five tips for making the most of your tax return money

MALVERN, Pennsylvania, April 14 / PRNewswire / - Plasma TVs. Getaway vacation. Shopping.

The tax refund splurge of recent years are not a reality for most Americans in 2009. Many people are likely wringing their hands about what to do with the money they receive from Uncle Sam Their concerns are well founded: it is more important than ever to consider options for your refund.

It is also the right time for refund recipients to consider a meeting with professionals who can help establish priorities and financial goals.

"If you have unpaid bills or debts, take care of these issues first," said Allstate Financial Regional Sales Leader Dan Mattingly. "But if you have more money from your tax refund or have the entire amount, do not be afraid of your options - be intelligent in your decisions."

Allstate recommends considering the following options to get your tax refund work for you:

- Establishment of emergency fund savings. Simply indispensable. The old conventional wisdom advised to save enough money to cover three to six months of unemployment. Many finance professionals now recommend you keep enough money hidden away to cover the six months to one year of unemployment. - Purchase life insurance. Many people have the life insurance plans offered by their employer. But your family is in need of protection if you work or between jobs. There are two basic types of life insurance: temporary and permanent. A financial professional can help you determine the type and amount of protection you need in May. - Contribute to the opening of one or the IRA. Yes, the market is unstable. But out of a pension plan is not quite the answer. Both traditional and Roth IRA are great ways to save for retirement, but each offers different advantages. If you are employed and have an IRA, continue to contribute. If you are unemployed, you may want to make a rollover of your pension plan to an IRA. - Buy a CD. If you do not need immediate access to your funds, you benefit from the May interest rate with a fixed deposit certificate. You can buy a CD or a duration as short period of 30 days or as long as five years.

- Start or add to a college fund. Pay for this, or save for your child's education? It is the agonizing decision faced by many parents consider a savings plan College-529. But what many parents do not know May is that the plan's investment portfolio allocations by age of your child.

Do not get caught up in confusion about what to do with your tax refund. Consider a meeting with an Allstate personal financial representative for further consideration of your current financial needs and see if you have what it takes to protect what you have today, and get ready for tomorrow.

The Allstate Corporation (NYSE: ALL) is the largest public insurance for insurers. Widely known through the "You're in good hands with Allstate (R)" slogan, Allstate is reinventing protection and retirement to help individuals in approximately 17 million households protect what they have today, today and better prepare for tomorrow. Customers can access Allstate products and services such as auto insurance and insurance through approximately 14,700 exclusive Allstate agencies and financial representatives in the United States and Canada, or in some States and allstate.com 1-800 Allstate (R). Encompass (R) Insurance brand property and casualty products are sold exclusively through independent agents. The Allstate Financial Group provides life insurance, accident and supplemental health insurance, pension, retirement, banking and products designed for individual, institutional clients and the workplace that are distributed through Allstate agencies, independent agencies, financial institutions and broker-dealers. Customers can also access information about Allstate Financial Group products and services at myallstatefinancial.com.

Securities offered by Personal Financial through representatives Allstate Financial Services, LLC (LSA Securities in LA and PA.) Registered Broker-Dealer. Member FINRA, SIPC. Main Office: 2920 South 84th Street, Lincoln, NE 68506. 877-525-5727.

Life insurance and fixed annuity issued by Allstate Life Insurance Company, Northbrook, IL and Lincoln Benefit Life Company, Lincoln, NE. In New York, Allstate Life Insurance Company of New York.

Contact: Tracey King Chris Conner (610) 213-7249 cell (215) 694-0663 cell (610) 251-3092 office (610) 251-3094 office

SOURCE Allstate Corporation