Trinity Debt Management – February / March 2012

5 Things to Do with your Tax Refund

f you have recieved your tax refund and are thinking of ways to use the money, we would like to offer a few suggestions. Here are 5 things to do with your money that will help you financially in 2011.

1. Increase Your Retirement Savings

Getting a lump sum of cash is a great time to consider investing, especially in a tax-advantaged vehicle like an IRA or other account that will allow your earnings to grow tax-deferred. Use your money to increase your retirement savings

2. Eliminate Debt

Every dollar of debt you eliminate makes you richer. If you’re paying 15 percent interest on a credit card, paying it off is the same thing as earning 15 percent, tax-free and risk-free.

3. Generate a tax credit for next year

Buy something that will improve your home and generate a tax credit for 2011. For example, purchasing an energy efficient water heater will save you about 20 percent on your electric bill every month for years to come and create a tax credit next year. To learn more about energy tax credits, see the Energy Star website.

4. Increase your Savings

Take $3,000 and deposit it in your savings account, use this money for emergencies or long-term planning this year.

5. Invest In Education

Maybe it’s time to take a class that will prepare you for a better job. With the economic downturn, many are returning to school to learn a new skill or acquiring degrees outside their previous profession. Use your return to get started in a new career.
TAX UPDATE: Important Tax Law Changes for 2010
If you haven’t filed your taxes, there are several important changes that the IRS wants you to know before you file your 2010 federal income tax return. Taxpayers should make sure they are aware of many important changes to the tax law before they complete their 2010 federal income tax return. For further information about these changes visit the IRS website at Please send your Customer Service Representative a copy of your most recent statement every 6 months. Please call your Customer Service Representative to request a Trinity statement as any time.

Tip of the Month
Contributing to a traditional IRA can create a current tax deduction, plus it provides for tax-deferred growth. While long-term savings in a Roth IRA may produce better after-tax returns, a traditional IRA may be an excellent alternative if you qualify for the tax deduction. Use this traditional IRA calculator to view the amount that could be saved using a traditional IRA.For more information see the Traditional IRA calculator at Link:

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