We've launched the new forums! Read more here

What to do will my tax return

tahoebum said:
The long term average since 1928 is somewhere around 9.5% with dividends or about 7% after inflation. Over the last 30 years it is about 11% for the S&P 500. Of course taxes will cut into that a bit when you start withdrawing your money.

The compounding effect of interest is not understood by many. I told my son before he went off to college that a 4 year college degree often costs $125,000 and if we instead elected to invest that instead of spending it on his college, it would be worth $3,000,000 adjusted for inflation by the time he was 65. That is without adding a penny to it over the next 46 years. He was shocked, but luckily has gotten good grades and is on track to graduate in 4 years.
Click to expand...
Compound interest is like magic

Sent from my Pixel XL using Tapatalk
 
tahoebum said:
The long term average since 1928 is somewhere around 9.5% with dividends or about 7% after inflation. Over the last 30 years it is about 11% for the S&P 500. Of course taxes will cut into that a bit when you start withdrawing your money.

The compounding effect of interest is not understood by many. I told my son before he went off to college that a 4 year college degree often costs $125,000 and if we instead elected to invest that instead of spending it on his college, it would be worth $3,000,000 adjusted for inflation by the time he was 65. That is without adding a penny to it over the next 46 years. He was shocked, but luckily has gotten good grades and is on track to graduate in 4 years.
Click to expand...

Im pretty well versed in compound interest, but every calculator I have plugged $1600 into, comes back with far less than 450k. Just general musing, because I agree in savings and agree in investments.
 
dhartmann34 said:
Compound interest is like magic

Sent from my Pixel XL using Tapatalk
Click to expand...

It is indeed. What didn’t point out to him is that the boat we just bought chopped his inheritance by about $2,000,000 if my wife and I live another 35 years. The boat by that time might be worth $10k.:act-up:
 
tahoebum said:
It is indeed. What didn’t point out to him is that the boat we just bought chopped his inheritance by about $2,000,000 if my wife and I live another 35 years. The boat by that time might be worth $10k.:act-up:
Click to expand...


Sent from my Pixel XL using Tapatalk
 
How many institutions are still offering compound interest? Many have gone to simple interest. They only use compound interest on loans...Then, deduct commissions, "fees", market "corrections", and whatever else, and those magically delicious projection numbers are nothing more than numbers on a page. The movie "Wall Street" was not entirely a work of fiction...not a fan of trading paper. The investments that have maintained their value for the last 6000 years or so are the ones that interest me.
 
I'd put it towards a golf experience of one kind or another. Trip, THP Event, weekend with the boys...something like that.
 
I just got my refund on Saturday but I put it away for now. I'll probably get the M4 or Rogue driver but want to get properly fit.
 
That could buy enough lessons to get you a nice drop in the handicap....just sayin’.
 
My half this year will go toward a membership at a private club.
 
tahoebum said:
Save it for retirement or to pay off debt. I know that’s very boring but now that I’m retiring at age 52, I’m glad I learned to be a saver when I was in my 20’s.

If you invested a $1600 refund each year and got the long term average return of the market you would have a nice little next egg of $450,000 in 35 years.
Click to expand...

Been retired going on 19 years now. Time to spend and enjoy so I don't leave it behind for others to do so
 
Hamfist said:
That could buy enough lessons to get you a nice drop in the handicap....just sayin’.
Click to expand...

I thought about that, but I'm not teachable
 
Ha! Whatever the wife wants! I'm dropping golf hints galore, I don't think she's listening. Lol
 
kevin81002 said:
What's a tax return? lol
Click to expand...

a tax return is the form that you submit to the taxing agency to report your items of income, deduction, credit, and payment.

an overpayment of tax is the interest-free loan you patriotically gave the taxing authority so that they could spend your hard-earned money on all of those very important public policies that your congressman fought for on your behalf. you may tell the taxing authority whether to keep using your money in such a fiscally responsible manner by electing to treat the overpayment as a credit toward a future year liability, or you can implement the gdp multiplier and trickle-down economics by electing to receive your payment back as a refund to be injected into the economy, perhaps by purchasing a lovely white picket fence.

a balance due is something i fail to plan for every year and try to forget about by watching this bottle of brown liquor descend into the same sad state as my wallet: empty.
 
I bought a S&W pistol and a scope for my AR.
 
Must be nice. I haven’t had a tax refund since 1998. But if I was I. Your situation I would get a membership. I got one last year and wished I had done it sooner.
 
TheHeez said:
To keep with the theme of the thread, I’d do one of three things.

Invest in my kids 529 account. He’s got >18 years and I want to be prepared for him to attend any school he wants.

HK P2000. Been eyeing this bang bang for awhile and I really want to bring ‘er home.

Rogue 3w & 5w. Absolute launchers and I will have them!

Hoping my accountant comes back with similar news! C’mon big money!
Click to expand...

If I remember correctly you had a kid in 2017 right? You should get a bigger refund! I’m only asking cause my son was born in November and hoping my refund will be a good bit higher as well!


Sent from my iPhone using Tapatalk
 
I'm beginning to lean towards a new driver with my tax return
 
luvagoodshot said:
Had my taxes done the other day and found out that my wife and I are getting $1600 back. We have always split the amount that each of us gets, so my wife gets $800 of it and I get the other $800. Now what should I do with my share of the return? Should I buy a new driver? Use it towards a membership? Buy a laser sight and holster for my new Ruger American 9mm? Invest it in the stock market? Take a golf vacation? Buy something for the house?
So many options.
What would you do with $800?
Click to expand...

Golf vacation.....cause let’s face it, it’s not the gear it’s the operator of the gear anyway.
 
JB said:
Im pretty well versed in compound interest, but every calculator I have plugged $1600 into, comes back with far less than 450k. Just general musing, because I agree in savings and agree in investments.
Click to expand...

Here is the exact math, I did have a rounding error because I broke down the $1600 in my head as $140 per month instead of the actual amount of $133.33.

$140 per month ($1680 per year) invested for 35 years will grow to $444k at 9.5% interest. $1600 would be $133.33 per month or $423k after 35 years. If you used 9.75% as a rate of return, that $133 per month would be $449k after 35 years. Btw, the average of the S&P 500 over the last 30 years is almost 11%. That rate of return would make that $133.33 per month grow to $550k after 35 years.

I used monthly compounding instead of annual because most people save in their 401k’s or other retirement account monthly, not annually. I loath tax refunds since that means the IRS or state treasury got to use my money free of interest.

e14d708fd18880013290d50f64c35144.jpg
 
First I'd lower my tax deductions so that I owed a little bit next year.

Then I'd try to get into any THP event this year. If that didn't work out, I'd go for a putter fitting.

Also, my wife is a CPA so I'd likely see $0.00 of any refund. :)

Sent from my SM-G950U using Tapatalk
 
Tax Return Shopping Spree

Tax Return Shopping Spree

For those lucky few who still get a tax return, what golf stuff are you planning on buying with your tax return? I'll be getting new Puma golf cleats and a few Puma shirts. I might be going full Aloha collection on the cleats and shirts.
 
Ft Worth Golfer said:
For those lucky few who still get a tax return, what golf stuff are you planning on buying with your tax return? I'll be getting new Puma golf cleats and a few Puma shirts. I might be going full Aloha collection on the cleats and shirts.
Click to expand...

I am going to try getting fitted for a driver. Not sure where to get fitted and honestly have no preference though I am leaning towards the Rogue or G400.
 
Not going to be anything I will have the pleasure of shopping with.
 
I have already started selling clubs to pay Uncle Sam and the state of california.
 
You must log in or register to reply here.
Back
Top