6. You should buy into the stock market
If you have your retirement funding arranged and you’d like to do something different with your refund, you should consider purchasing stocks or mutual funds—they have potential to give you more than you put in.
We can say that the market has delivered better returns than savings accounts and Treasury bonds over time. But, it can be quite unpredictable and returns are never guaranteed. Trying to time the market is risky and stock prices can fluctuate. Most financial advisers recommend against investing in the stock market when saving for short-term goals. However, they do recommend investing when saving for long-term goals like retirement.
You can invest in individual stocks or mutual funds, which are bundles of stocks, through a broker or a robo-advisor. Robo-advisors offer low-cost investing options for DIY investors. Keep in mind that your investments are not protected by the Federal Deposit Insurance Corporation (FDIC) like checking and savings accounts are. If the stock market drops, you risk losing all your money.
