Most Middle-Class Americans Plan to Put Away Tax Refund

Americans with a financial plan are especially likely to save their tax refund, according to the First Command Financial Behaviors Index.

The index’s February survey found that 78% of middle-class Americans (household incomes of at least $50,000) who have received, or expect to receive, a tax refund plan to put those dollars toward savings and investments, prepaying major bills, or debt reductions.

Most Americans won’t be spending that refund on a vacation to the Bahamas or other non-essential items. The survey found that 27% of respondents will spend refund dollars on a vacation, dining out, home improvement, or other consumer purchases.

Americans with a financial plan are more likely to use their tax refund for general savings (44%) than those without a financial plan (35%). Meanwhile, Americans without a financial plan are more likely to use their tax refund to pay down debt (44%) and pay monthly bills (21%) than respondents with a financial plan (33% and 11%, respectively).

“Spending and saving wisely has come back into fashion during the current financial turmoil,” said Terri Kallsen, executive vice president of strategic development at First Command Financial Services, Inc., in a release of the results. “The time-tested values of prudence and self-reliance are moving us toward a healthier economic future. We are starting to understand the value of long-term gratification for retirement dreams.”

The First Command Financial Behaviors Index is a monthly survey of approximately 1,000 U.S. consumers aged 25 to 70.

LPL Promotes National Sales Manager

Independent broker/dealer LPL Financial Corporation has promoted Derek Bruton, national sales manager, Independent Advisor Services (IAS), to managing director of the company.

LPL said the appointment makes Bruton the 10th managing director in the company, and expands his current duties as national sales manager. He will continue to report directly to Bill Dwyer, president, National Sales and Marketing, and have oversight for business consulting and business development for all independent advisers and registered investment advisers (RIAs), as well as financial planning services.

«