The thing I find hard to believe is 80% of most Americans get refunds...I personally always claim fewer deduction than I could actually claim. It is my ploy for one reason.
Investors would say you should always invest your extra income in mutual, gold, or other funds. But as a average human...and husband I found there was always someplace and some reason to spend extra money. Kids, doctors, pets, clothing, etc.
I decided to instead take the extra refund amount every year and invest at least 50% in the best available later life income fund. Giving a lump sum to the family for a vacation, extra kid toys, clothing, etc. The family looked forward to the excitement. My choice of longterm investment were tiger coupon government guaranteed amounts. With 14%to 16% interest for the term of the bonds. Up to 30 years in length. So by paying 2-3 thousand $dollar in 1976 I was guaranteed 20-30 thousand thirty years later on one tiger bond. So after 2006 I have 401k, social security, and tiger bonds maturing each year.
YES, I used social security as a retirement fund...as well as 401k, and government bonds. Investors will tell you that it may not be the best investment...BUT UNLESS THE GOVERNMENT GOES UNDER...IT IS GUARANTEED. AND IF THE GOVERNMENT GOES AWAY...THERE IS NO GUARANTEE ON ANYTHING.