5 Convincing Reasons to Invest Your Tax Refund

It's amazing how much you can earn in one year's time.

When tax time comes around, getting a fat refund check from the government might make you feel like you just won the lottery, but not so fast. That money isn’t just free cash — it was yours this whole time, so you should treat it accordingly.

Instead of blowing your refund on a vacation or a bunch of new clothes, take that cash and invest it. That’s even better than putting it in savings like most Americans do. Not sold yet? See how much the average refund of $2,782 would have grown in less than a year if it was invested in certain stocks.

Or, click through here to make sure you avoid the worst things you could do with your tax refund.

Reason No. 1: Boeing (BA)

Your $2,782 Investment Would Be Worth: $5,542.55

If you want your bank balance to start soaring, take to the skies with Boeing. It’s always been a dividend-paying blue chip stock but its stock took off in the past year. You would have just about doubled your money.

Reason No. 2: Wynn Resorts (WYNN)

Your $2,782 Investment Would Be Worth: $4,055.79

Wynn Resorts is a gambling conglomerate, and if you took a chance on the company you would’ve cashed in big. Its stock price took a tumble in 2015-16 — and there was nowhere to go but up. Shares in Wynn have risen about 46 percent in the past year.

Building Wealth

Reason No. 3: Activision Blizzard (ATVI)

Your $2,782 Investment Would Be Worth: $4,108.58

The numbers attached to Activision Blizzard are out of this world — perhaps, out of a “World of Warcraft”. Known for WoW and other blockbuster online games, Activision Blizzard is what’s known as a “story stock” and investors are betting big on the company’s lineup of billion-dollar game franchises. The stock is one of the fastest-growing since 2000.

Reason No. 4: PayPal Holdings (PYPL)

Your $2,782 Investment Would Be Worth: $5,143.80

PayPal was one of the most integral vehicles that pushed online shopping from a novelty to a daily reality for many Americans. Thanks to the company’s 2017 introduction of its “One Touch” feature, as well as its acquisition of Venmo — a peer-to-peer money transfer platform — the stock has been on a tear. You would’ve nearly doubled your tax refund had you invested.

Reason No. 5: Adobe Systems (ADBE)

Your $2,782 Investment Would Be Worth: $4,488.78

Those numbers aren’t photoshopped. Ever since Adobe Systems — the creator of programs like Photoshop, Adobe Reader and Final Cut Pro — shifted its software from single-purchase to a subscription-based cloud model, the company has seen profits skyrocket. You could have netted more than 60 percent if you bought Adobe shares with your refund.

Keep Reading: Here’s the First Thing You Should Do With Your Tax Refund

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About the Author

Rachel Farrow

Rachel Holly Farrow is a Digital Content Editor for GOBankingRates.com. She has worked in a multitude of different mediums — traditional print, television, and now digital — before landing with the team at GBR. She also served as a Weekend News Producer and Digital Content Producer for an ABC-affiliate news station WNEP-TV 16 in Scranton, PA.

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