Transmogrified Tiger wrote:Again, unless you're an extreme outlier, the difference in getting that money monthly v. an annual refund is negligible. Certainly so if you're less likely to use that money for responsible/interest-bearing purposes if it were just part of a larger monthly paycheck. Optimizing withholding to avoid giving the government an 'interest-free loan' has logic but is silly in practice, similar to 'if you don't buy a $3 latte and invest it you'll be a zillionaire when you retire'. It misses the forest for the behavioral trees.
One $3 latte a week? Ok that's that like $150 a year. Over 40 years, that's $6000 if you just put it in a savings account.
One $3 latte a day? That's $1100 per year, $44000 over 40 years, not to mention the added weight from all those extra calories.
It adds up.