Financial adviser talks about what to do with your tax return

BURLINGTON, Vt. (WCAX) - Tax return money should be coming soon, and there’s a smart way to handle the check.

The deadline to file your taxes is Monday, April 18. And for some, returns are already arriving in mailboxes.

WCAX talked with Emily Phelps, a financial adviser from New England Federal Credit Union, about the smartest ways to spend or save your tax return.

She suggests funding an emergency fund.

“This is a great way for unexpected expenses and really reduce your financial stress. The end goal for this fund should be at least three to six months of living expenses, but even put $1,000 in your savings account right now could really help you out in the long run. Generally, I would first focus on paying down any high-interest debt that they may have like credit card debt. This can help open your cash flow so you can save more, then focus on any savings like education, homeownership, home repair, vacation, whatever it might be. And if you have any of that sort of stuff in order and handled, then maybe you do put the money away for retirement, an IRA, or invest money for long-term goals you may have,” said Phelps.

Phelps suggests getting a financial adviser whenever you have goals you would like to meet.

Watch the video to see the full interview with Phelps.

Copyright 2022 WCAX. All rights reserved.