For many investors, a tax refund isn’t life-changing, but it can still be a smart opportunity to strengthen your financial plan. Consider putting your return to work in one of these strategic ways:
Reinvest It Thoughtfully
Use your return to bolster your portfolio. Whether it’s rebalancing asset classes, increasing exposure to alternatives, or buying into undervalued opportunities, reinvesting aligns your refund with your long-term strategy.
Fund a 529 Plan or Educational Trust
Your refund could help fund education for children or grandchildren. In 2025, individuals can front-load up to $90,000 (or $180,000 per couple) into a 529 plan using the five-year gift tax exclusion—a good tool for tax-free growth and estate planning.
Support a Donor-Advised Fund (DAF)
If charitable giving is part of your plan, a DAF offers flexibility and tax efficiency. You can take the deduction now and recommend grants to your favorite causes over time.
Enhance Risk Management
Use your refund to fund strategies that protect your wealth—like adding umbrella insurance, bolstering cyber protections, or updating estate planning documents. These can be foundational to safeguarding your financial life.
Revisit and Refresh Your Estate Plan
Even a modest return can go toward legal and financial updates that ensure your estate plan reflects current wishes, tax law changes, and family dynamics.
Your tax return—no matter the size—can play a role in enhancing your financial picture. If you’re unsure where your return fits into your broader plan, we’re here to help you.
Disclosures
This material is provided by Gryphon Financial Partners, LLC (“Gryphon”) for informational purposes only. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Facts presented have been obtained from sources believed to be reliable. Gryphon, however, cannot guarantee the accuracy or completeness of such information. Gryphon does not provide tax, accounting or legal advice, and nothing contained in these materials should be taken as tax, accounting or legal advice. Individuals should seek such advice based on their own particular circumstances from a qualified tax, accounting or legal advisor.