Tax Day: Tax Refunds Don’t Have to Be Short‑Term

Spring is in the air, and for many Americans, tax refunds are arriving in their bank accounts. While it’s easy to spend this money quickly, your refund can also be an opportunity to think longer‑term.

Investing a one‑time refund into a tax‑advantaged account like an IRA can help turn this year’s refund into long‑term growth through the power of compounding interest.

For example, if you invested $3,500 into a Roth IRA today and it grew at an average 7% annually, that single contribution could grow to about $19,000 over 25 years, simply by staying invested and allowing returns to compound over time. (Example for illustration purposes only.)

At First Western, our Trust Department is a comprehensive wealth management team within a full‑service bank. We help clients make important decisions, such as whether to use a tax refund for an IRA contribution, that fit their overall retirement strategy.

If you’re receiving a refund and wondering how to use it wisely, we’re here to help.

Contact us today to start the conversation: 701-857-7150