What should I do with my tax refund?

[kentjohnson4]

Just a quick question to get advice on what I should do with my tax refund.

I'm 27 years old, single, planning on going back to grad school this fall. I make 40k a year with 10% of that going to charitable donations. I'm in the process of applying for various tuition waivers/graduate assistantships to lower my financial burden in grad school but those obviously aren't a given.

I was thinking that I should just plop my $1250 tax return into my high yield savings account but I just wanted to get the opinions of others.

My debt balances are as follows:

Student Loan 1: $4,720.16 @ 5% variable - payments of $76 per month. I pay twice per month.
Student Loan 2: $10,311.93 @ 5.875% - payments of $118.85 per month.
Cell Phone - $55 month but I get reimbursed $80 from work.

Investments:

Roth IRA: $7,281.39 - I contribute $100 per month. Net realized/unrealized was $285.91.

High Yield Savings Account: $6,005.68 @ .90% - I contribute when I have leftover funds. No recurring transfer set up.

Savings Account: $275 - transfer $75/month to avoid bank fees

Lending Club: $404.05 - no current transfers.

Whole Life Policy: $109,785.00 of coverage - annual premium is $1,142.86 - cash value of $168.07.

HSA - $1,826.26 - I contribute $150 per month - interest rate of 0.31.

[JoeP]

Why do you have a whole life policy, and for that value? Term is far more economical, and possibly unnecessary for you at your age and marriage status. Does your employer offer life insurance as part of your compensation?

Personally, I'd drop the whole life and put that refund toward your emergency fund.

[bjl584]

I'd probably fund my Roth.

Then I'd adjust my witholding status to prevent getting a refund going forward.

[cooliemae]

Why do you have a whole life policy, and for that value? Term is far more economical, and possibly unnecessary for you at your age and marriage status. Does your employer offer life insurance as part of your compensation?

Personally, I'd drop the whole life and put that refund toward your emergency fund.

I agree, go get a 30 year term life insurance policy if you want pay $300 a year and take the savings and invest it.

[phantom]

Since your high yield savings account is where you usually put extra funds, that would be the consistent place to put your tax refund. Is there are certain amount that you are trying to get in that account? I am assuming it is a combination between your emergency fund and savings for grad school. I'd keep stashing money there until you feel comfortable with your ability to use some of it for grad school while maintaining an adequate emergency fund. After that, I'd focus on fully funding that IRA, but it doesn't sounds like you're at that point yet.

[snafu]

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