Does wise financial planning include getting a large income tax refund every year? Discuss three tax...

Does wise financial planning include getting a large income tax refund every year? Discuss three tax saving strategies that could be effective for an individual’s personal tax savings.

Expert Solution

Yes, Wise financial planning will be including getting a large income tax refund because it will be leading into increase of the savings of the individual and having more money by spending wisely and investing them into the proper assets.

3 tax saving strategies that will be effective for individual personal savings-

A. Making of deductible contribution to the traditional IRA and it will be leading to personal tax saving of the individual.

B. Contribution to the employer-sponsored retirement plan will also be leading to tax benefit which will be effectively leading to individual personal tax saving.

C. Setting aside of the education fund in 529 plan will also be leading to higher tax savings.

jeff jeffy answered 2 years ago

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