MetLife Bank Provides Tips for Maximizing Tax Refunds

MetLife Bank Provides Tips for Maximizing Tax Refunds

    Business Editors

    NEW YORK--(BUSINESS WIRE)--April 26, 2005--Any time of the year represents a good time to invest money, but spring seems to be especially ideal, particularly for those who receive a tax refund or a bonus. What's the best way to make that money work for you? The appropriate course depends upon life circumstances, including financial condition, short-and long-term goals, and the needs of dependents.
    "Unfortunately, many people think of their tax refund as extra spending money, but they should consider setting at least a portion aside for the future," said Bill Raczko, vice president of MetLife Bank. "Extra money represents an opportunity to start planning for a retirement or saving for a child's education. Saving is a critical issue, because financial advisors warn that many Americans are living paycheck to paycheck, and endangering their ability to live comfortably in their golden years."

    Here are some savings options to consider:

--	Pay off debt. For those who have incurred a significant debt burden, it may be wisest to pay off credit cards first. The high interest rates that most cards carry can negatively impact any other investment decisions.
--	If your employer has a 401K, be sure to invest in it. This is smart money, because it's an upfront tax deduction and usually tax deferred. Plus, many companies will match the investment.
--	Consider a Money Market Account. Choose this option to set aside funds for a rainy day, or to wait until a better investment opportunity comes along. According to Raczko, the yields on these accounts have begun to rise in recent months, but it's important to spend some time shopping around for the best rate. Look for banks that offer consistently high rates--some institutions offer short-term promotional rates, which drop significantly after a few months.
--	Think about an IRA. People concerned about having enough income to last throughout retirement should consider contributing to an individual retirement account (IRA). There are different types available that can provide tax benefits, but each IRA type has its own specific eligibility criteria and contribution limits. For added savings, look for a no-fee IRA. Please note: before contributing to an IRA, consider consulting with a tax advisor regarding eligibility to contribute, as well as contribution limits.
--	Save now for college later. If your dream is to fund a child's education, the best time to start saving for this goal is now. Consider tax-free options, such as a 529 college-savings plan.

    Also, savvy investors should consider all the available options out there, including alternatives to traditional banking institutions. For instance, direct banks, which typically provide the convenient access of the internet, often offer more competitive rates. For those who feel uncomfortable conducting business on the Web, some eBanking institutions have developed a network of relationships with financial services brokers, which can offer the trust and comfort of dealing with a local financial adviser, and the advantage of great rates.
    "People can secure higher-interest rates by depositing the money they want to save in a direct, or online bank," said Raczko. "Depending on your balance, just a one percent difference in the interest rate can mean hundreds, or even thousands, more dollars in your pocket in just a few short years."
    For additional information, MetLife Bank(R) offers a variety of Web-based calculators designed to take the guesswork out of building financial freedom, including calculators to help plan for retirement, and information about savings alternatives. There are also calculators to help develop a budget and assist with estate planning. They are available under "calculators" at www.metlifebank.com.
    Also, as part of its Life Advice program, MetLife is offering two brochures, on "Investing Basics" and "Building Financial Freedom," to help people better understand the intricacies of investing and take appropriate steps to prepare for the future. "Investing Basics" serves as a primer on investment styles, types of investments, and retirement investment vehicles. From savings accounts and CDs to bonds and annuities, this brochure can help potential investors recognize their investment style, understand the risk/reward relationship and learn about diversifying investments. "Building Financial Freedom" provides valuable information on how consumers can seize control of their finances and start planning for the future. Both are available for free, by calling 1-800-MET-LIFE (1-800-638-5433).

    Headquartered in Bridgewater, NJ, MetLife Bank, NA, (Member FDIC), is a federally chartered bank, and a subsidiary of MetLife, Inc. (NYSE: MET). MetLife, Inc., through its subsidiaries and affiliates, is a leading provider of insurance and other financial services to individual and institutional customers. The MetLife companies serve individuals in approximately 13 million households in the U.S. and provide benefits to 37 million employees and family members through their plan sponsors. Outside the U.S., the MetLife companies serve approximately 9 million customers through direct insurance operations in Argentina, Brazil, Chile, China, Hong Kong, India, Indonesia, Mexico, South Korea, Taiwan and Uruguay. For more information about MetLife, please visit the company's web site at www.metlife.com.

    MetLife is the trade name of Metropolitan Life Insurance Company

    MetLife Bank, N.A. Member FDIC

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CONTACT: MetLife, Inc. Ted Mitchell, 401-827-3236 tjmitchell@metlife.com or Joe Madden, 401-827-2015 jmadden@metlife.com

KEYWORD: NEW YORK INDUSTRY KEYWORD: INSURANCE BANKING SOURCE: MetLife, Inc.

Copyright Business Wire 2005