Refund Money

The goal for any taxpayer is to land on $0 in terms of what you owe the IRS vs. what they owe you.  However, there are those that prefer to get their money throughout the year, and pay their balance on tax day.  Others (as happens with most Americans) prefer that they get a return.  Last year, the average return was $2800.  That’s pretty healthy.

Personally, Mrs. RCS and I have a deal with bonuses and tax returns: (At least) half goes to savings, and then the rest goes to discretionary.  If we decide that we want to put it all in savings, we will, but we have the ‘right’, per our financial planning, to go have a little fun.  I’ll share what we bought at the bottom of this post.

Based on some step levels, here’s what I would do with some tax return money:

If my tax return was $100, I’d put $50 into savings, and go get:

Colonel Littleton’s leather front pocket wallet.  Seems very appropriate to reward yourself from your tax return with a new wallet.  Spring for the monogram, but see if they’ll do the year rather than your initials (although the monogram is just fine).  There is religion around wallets, and I can tell you that I worship at the house of Col. Littleton.  Mine is over ten years old, and is just beginning to seeing its sunset.  Now that’s a good investment.

If my tax return was $500, I’d put $250 into savings, and go get:

Orvis’ Hydros SL Fly Reel.  Continuing with the investment theme, get something that you’ll use for years to come.  The folks at Orvis know fly fishing, and the Hydros SL is a GREAT reel to keep handy.  Add some great line and eventually a Recon rod and you are in business.  Trout beware…

If my tax return was $1000, I’d put $500 into savings, and go get:

These sand suede Alden tassel loafers from my guys at Miller Brothers in Atlanta.  They are very unique, but have such a cool style.  The sand suede is reminiscent of the old suede bucks, and will work as a sleeker substitute with your (well tailored) seersucker pants or khaki trousers.  NEVER with socks.  Ever.

If my tax return was $2000, I’d put $1000 into savings, and go get:

A new set of Titleist AP2 716 Irons.  Now we are getting to the ‘splurge’ level.  I would not call a set of golf irons a splurge…especially if the purchase is something that you will use for both business, pleasure, or both.  For a lot of us, golf is a hobby, a release, a means to conduct business, and/or a break from reality.  Invest well in your equipment, and getting that extra juice is the perfect time to pull the trigger.

If my tax return was $5000, I’d put $2500 into savings, and go get:

Tudor Heritage Black Bay Watch.  Such a cool watch, and the leather band looks great.  The Black Bay watches are really sharp; a nice departure from the Rolex or Omegas you see quite a bit.  The icing is the red bezel.  $2500 is a heavy investment for a watch, but this one won’t ever lose any value.  Add a metal band should you feel the need.

And finally, if my tax return was $10,000, I’d get a new accountant.

What did Mrs. RCS and I buy?  Well, we both got shotguns.  We had been eyeing a them for a while…  I got a 20 gauge O/U Beretta Silver Pigeon, and she got the same Beretta, but a 28 gauge.  It’s cool to think that we’ll teach our young ‘uns to shoot with these.

They were both used, but in perfect condition.  Special thanks to Chuck’s Firearms in Buckhead to making return day great for us.

What’s your plan with tax return money?