Tax Refund - Use It Wisely
Are you getting a tax refund? If you are, I bet you are counting down the days until you get your money. Don't YOLO your life away. Get off Amazon, don't look at travel prices to Vegas, and don't go to the mall. Hard to resist?
Before you spend your tax return, you should consider doing these three things:
1. Make An Extra Mortgage Payment
Extra mortgage payments make a difference. Even if you make one extra mortgage payment a year. By making extra mortgage payments, you could save yourself money in the long run because you are paying less interest over the course of your loan.
2. Purchase A Life Insurance Policy
A person once told me, "I don't need life insurance. If I die, it's not my problem on what my family does with my house."
Every person is different. However, having a life insurance policy can put you and your family at ease. If you die, a life insurance policy can help your family payoff the mortgage and other real estate (and non real estate) related expenses.
You should speak with a financial advisor on what type of life insurance policy you should purchase and how much insurance you actually need.
3. Create A Will And A Trust
If you didn't purchase your home in a trust, it's probably beneficial that you create a trust and your transfer your home into that trust. Owning a home in a trust can help you avoid probate. Sometimes, the probate process can take months or years.
When you meet with your estate planning attorney, you should also inquire about creating a last will and testament. Ideally speaking, a last will and testament should work hand-in-hand with trust.