A Comprehensive Guide to Investing Your Tax Refund in a Vanguard S&P 500 ETF
Maximize Your Tax Refund with One Simple Vanguard ETF for $47,000 or More
Don't let your tax refund sit in cash.
Invest it and see your money grow enough to support your retirement. Over 91 million American households have already received a tax refund in 2024. Only a small group of those households will take the extra step to turn that money into a much more valuable asset.
About Vanguard S&P 500 ETF
- An S&P 500 index fund offers an excellent foundation for any portfolio.
- Provides the benefits of immediate diversification by spreading your investment across 500 or so companies.
- The S&P 500 index includes a selection of the largest American companies that have been consistently profitable.
Turn your tax refund into $47,000
The S&P 500 has historically produced a compound total return of 9.8% per year since its inception.
Just a one-time investment can turn into more than $47,000 in 30 years as long as you reinvest your dividends.
Should you invest your tax refund all at once?
Some people prefer to invest a certain amount over a pre-determined amount of time. While that might give you the opportunity to invest in the market at a lower price, historical data shows that investing a lump sum produces better results than dollar-cost averaging.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.