Nearly two-thirds of individuals anticipating a tax refund this
year plan to save or invest at least part of the money they
receive, according to a recent survey by TD Ameritrade Holding
Corp. (AMTD).
The survey, which polled roughly 1,000 adults via telephone last
year, found that just over half of respondents expect to get a
refund this year. A mere 14% plan to use refund money to splurge on
travel or new gadgets, the brokerage said.
Roughly half expect to use some of the money to pay down debt or
pay for necessities like food or utility bills. The filing deadline
for federal and state income tax returns is April 17.
"While this pragmatism may be a result of current economic
conditions, it's nevertheless good to see that people are more
likely to save their tax refund rather than perhaps spending it
unwisely," said Lule Demmissie, managing director of investment
products and retirement at TD Ameritrade.
The survey's findings are based upon a telephone survey
conducted between Oct. 13 and Oct. 16. The margin of error is plus
or minus 3.1 percentage points.
-By Mia Lamar, Dow Jones Newswires; 212-416-3207; mia.lamar@dowjones.com