What’s the Best Way to Put Your Tax Refund to Work?

Wealthsimple makes powerful financial tools to help you grow and manage your money. Learn more

Wealthsimple is a whole new kind of investing service. This is the latest installment of our “Data” series, where we dig into the numbers to learn more about how the world of money works.

Tax refunds have been called the biggest paycheque of the year. And for some people they are. The average refund is $1,735, and some are even bigger than that. And as the great spirit guide to financial wisdom says: with great windfalls come great responsibilities.

And, for a lot of us, great temptation.

So when we see our cheques we may remark that yes, drones are pretty cool; or that, hmm, now you do have enough to get the full Ben Affleck-style back tattoo. But this time of year we like to remind you that the financial spirit guide also instructs us to ask ourselves the essential tax refund question: what's really going to make you happy?

To help you figure out the answer, we employed some really complicated math and tons and tons of science in our patented Tax Refund Joy-Over-Time index. Here are our AI-assisted, data-driven algorithmic scientific results.

You pulled the trigger! Bubbles and steam in the backyard! Joy rating just got sky-high. And everyone who comes over is gonna want to hang out in it!

Except Nancy.

And Sanjay and Phil.

And your kids' friends.

When's the last time you even used it? And what's growing in there?

And that's not even counting when you find out that it doesn't necessarily increase the value of your house — because the new buyers want you to take it out.

Guys! Bitcoin! It's huge!

I mean it's a hoax and sham!

No, really, it's the future!

It might be the future.

Bitcoin is what's known as a speculative investment. It could make you a bazillionaire (once they invent the number “one bazillion” because it was decreed by the newly moneyed Bitcoin-ocracy). But it could also decidedly not be worth a bazillion dollars. And the truth is we don't know where the future lies. Because no one does.

It's a small investment. And it lasts a lifetime.

And you've thought long and hard about the very thing that represents your soul. And yes, of course it's a marsupial.

Wait, did you say it lasts a lifetime?

We do not judge at Wealthsimple. Happiness is happiness (unless it comes at the expense of another human). But we do happen to be data-driven. And we want to ask you: is youth-by-injection a good long-term investment? Is the fountain of (laugh-line) youth worthwhile if it's really just a way to get you on the hook for a few hundred bucks every few months?

Also: needles.

It’s low-cost, it’s optimized, it outperforms pretty much anyone who thinks they’re good at picking stocks, and offers returns 21x higher than the national savings account average (but if you’re looking to save for the short term, high interest rates and compounding go a long way too). All you have to do is click here to get started — in the long run it’s the smartest thing you can do with your money. Sorry, Jacuzzi.

Wealthsimple makes smart investing simple and affordable.

Wealthsimple uses technology and smart, friendly humans to help you grow and manage your money. Invest, save, trade, and even do your taxes in a better, simpler way.

Money + the World

"BURNOUT HAS BECOME OUR BASE TEMPERATURE. WE’RE THE BURNOUT GENERATION."

Anne Helen Petersen explains how things are different for the generation the world seems to love to hate.

subscribe

Get the best stories from our magazine every month

Sign up for our email newsletter

  • Money & the World

    Super Bowl Ads Are Super Expensive. They’re Also a Better Deal

    We pride ourselves on being thrifty and effective. So why did we buy some of the most expensive ads on TV? Because, dollar for dollar, it’s actually a better use of our money. We crunch the numbers to show you why.

  • Money & the World

    We Fact-Check Theories About Meme Stocks and Online Brokerages

    Brokerages stopped trading on stocks like GameStop, issued warnings when people tried to trade, and even had to raise billions to shore up their businesses. There’s a hurricane of misinformation about why all that happened. Here we weigh in on what’s true, what’s false, and what we just don’t know the answer to.

  • MEET WEALTHSIMPLE

    A new kind of financial company

    Invest, trade, save, spend, and even do your taxes in a better, simpler way.

    see-more cta
  • Money & the World

    How the GameStop Phenomenon Happened. And Why the Losers May Not Be Who You Think

    A conversation with Ben Reeves, resident market genius (and Chief Investment Officer at Wealthsimple), who explains what happened, the changes it shows in the world of investing, and how, in some ways, it reflects the same problems individual investors have always faced.

  • Money & the World

    The Code That Controls Your Money

    COBOL is a coding language older than Weird Al Yankovic. The people who know how to use it are often just as old. It underpins the entire financial system. And it can’t be removed. How a computer language controls the financial life of the world.

MEET WEALTHSIMPLE

A new kind of financial company

Invest, trade, save, spend, and even do your taxes in a better, simpler way.

GET STARTEDright arrow icon

Our best stories, once a month.

Sign up for our newsletter

The content on this site is produced by Wealthsimple Technologies Inc. and is for informational purposes only. The content is not intended to be investment advice or any other kind of professional advice. Before taking any action based on this content you should consult a professional. We do not endorse any third parties referenced on this site. When you invest, your money is at risk and it is possible that you may lose some or all of your investment. Past performance is not a guarantee of future results. Historical returns, hypothetical returns, expected returns and images included in this content are for illustrative purposes only. By using this website, you accept our (Terms of Use) and (Privacy Policy). Copyright 2021 Wealthsimple Technologies Inc.

;