It's Tax Day & here's why you don't want a refund...

We hear a lot of people complain when they don't get a tax refund. What they're saying is essentially "I'm mad I didn't overpay the government in tax dollars!".

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When you get a tax refund, that means the government just sat on the money you gave them and returned it to you interest free... not something I would be thrilled about. Ideally you wouldn't owe any money or get a refund - your tax-planning fee-only advisor should have you dialed in enough that your tax bill or refund is incredibly small. If your financial advisor is not constantly looking at your tax situation throughout the year -maybe it's time to look elsewhere.

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What if I owe taxes?

That's not a bad thing! For example - if you owed $3,000 and that money was invested in the market over the last year, instead of the government just holding on to it you would have been much better off! For example, if that $3,000 had been invested in a globally diversified ETF (DFAW) from 1/1/2025 - April 15th 2026, that $3,000 would have increased around 25% or $750. If you overpaid your taxes by $3,000 -guess how much the government gives back to you? $3,000.

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To reiterate, ideally, you are working with a tax-focused fee-only advisor that focuses on your tax situation, constantly looking for ways to lower your tax liability. We aren't saying that we are begging to owe taxes, just that if you constantly put your money to work - it's not always a bad thing!

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Please contact us if you are looking for tax planning from a fee-only financial advisor in Cary, NC.

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