(Image: Thinkstock)

Some experts say you should spend your tax refund on a cruise, widescreen TV, or a tablet, purchases when made in the spring offer the most bang for your buck. Others say you should buy the bed or household appliance of your dreams, since they’re purchases you wouldn’t ordinarily make without the large sum of money coming your way.

“In 2012, the IRS estimated the average federal tax refund to be about $2,700,” writes Lisa Greene-Lewis, a CPA and TurboTax Tax Expert for U.S. News. “That’s equal to more than one month’s worth of income for 66 percent of taxpayers—or more than three months of groceries for an average family of four. Of course, you could adjust your W-4 so you have fewer taxes withheld. However, struggling taxpayers often have a difficult time holding on to that extra money when it’s included in their paycheck instead of receiving it in a lump sum.”

Overall, there seems to be no general consensus as to what Americans plan to do with their tax refund. Several polls say that half of all Americans will save their money, or put it into an investment account of some sort.

What’s the right move for you? Should you pay down debt? Should you buy something that’s leaving a void in your personal life? Tell us how you’ll be spending your tax refund in the comments, and read about 8 smart ways that you can spend it this year.

Fredrick Scott. Courtesy of www.fredrickdscott.com

Fredrick D. Scott on Monday announced that he was creating Fredrick D. Scott, LLC, a venture capital and private equity firm that will invest in and acquire” minority-focused financial and banking institutions.”

Scott was the head of ACI Capital Group, LLC (ACI), a investment banking and advisory firm that managed with $3.7 billion in assets. He was named Ebony magazine’s “Top 30 Under 30″ in 2010. At 26, Scott was the youngest African American hedge fund founder in history, according to his website.

“My goal is to redefine and advocate for economic sustainability and wealth creation in our community,” said Scott. 

“The minority banking industry, more specifically the African American owned banking segment, is fragmented and under tremendous pressure from larger and more robustly capitalized mainstream competitors who have embraced the growing diversity of the marketplace. I believe that, in addition to capital, I can contribute fresh energy and new strategies that would improve the competitive posture of African-American owned banking and financial services businesses, as well as advance the mission of multi-generational economic strength and wealth creation in our community.”

Visit Scott’s website here.

But, it could work to the advantage for the level-headed investor who does not mind a little calculated risk. As some panicked investors dump assets, there are others who swoop in to pick them up at fire-sale prices. Fortunes can be made during times of dislocation if the game is played correctly.

There are things to know before jumping into the fray. For instance, be wary of diving head first into European markets. The only thing that separates them is the printing press, and the ability to print money can be the difference between a strong and weak market. Watch for emerging markets, those countries that are developing economies quickly, because while the stocks may seem cheaper there are transaction costs that can and will add up over time. And, keep an eye on the underdog. Greece has been a battered economy for a while, but it may be worth looking at sectors in the country that relate to industrial needs (i.e. necessary).

Marketwatch has five tips every bold investor should know.

The number of American households worth $1 million or more — excluding the value of their homes — surged to nearly 9 million, just shy of the 9.2 million households during pre-recession days. The stock market crash during 2007 and 2009 caused the rankings of millionaires to plummet to as low as 6.8 million households in 2008. Now that number is at 8.99 million.

However, the spike in U.S. millionaires is a stark contrast to those who are not. More than 12 million Americans are still unemployed, incomes are flat and more than 40 percent of the jobless have been out of work for six months or more.

Read more at Washington Post.

Panelists talk financial management at "After Funding: Managing the Investor Relationship" panel (Image: Mike Street)

Are you having trouble managing your relationship with an investor?  During the Black’s in Tech #BitHouse panel “After Funding: Managing the Investor Relationship” at the South by Southwest (SXSW) in Austin, Texas, Felecia Hatcher, chief executive at Feverish Ice Cream; Brian Dixon, venture capital associate at Kapor Capital; and Heather Hiles, CEO of Hiles Group, a philanthropy consultancy firm, and CEO of Inspired Life Media Group Lisa Nicole Bell gave deep insights on the art of managing a relationship with an investor.

Here, BlackEnterprise.com outlines 5 tips to managing the investor relationship:

Do your homework – VC firms will dig deep into your past because they want to make 100% sure that you’re the right fit. And, as an entrepreneur, should dig deep into the VC firm. You need to ensure they’ll be able to bring the right resources to your business to help it grow. “Do as much homework on the VC firm as they will be doing a lot of homework on you. Remember this needs to be a two-way relationship,” says Hiles.

Set clear expectations – “Milestones and expectations are critical for managing the overall relationship between a company and investor. Be as clear as possible,” Hiles says. Being as clear with an investor on expectation and milestones will help to clear up any future headaches.

Talk with your investor – Open and clear communication is critical. Setup monthly or even weekly meetings with an investor so they are fully aware of exactly what’s going on and the overall progress that’s being made. “Talk in full detail with your investor on what success looks like. Do not leave is up to guessing,” says Dixon. “The more this can be defined, the better you will be for meeting and exceeding expectations.”

Time is money…remember that – “Don’t waste anyone’s time. Tell your investor what you need help with and what you don’t need help with,” Dixon advises. “Otherwise, they might be sending over resources to fix problems that don’t need to be fixed.” Express your overall needs to your investor. He/she is available to help make sure that your business is a success. So, be clear on exactly what you need from him or her to help your business win.

Grow slow – “If at all possible, try not to take on an investor. You never fully understand what power you are giving up and over to someone else,” reminds Hatcher. “If I had the chance to do it over again, I would have not taken on an investor. Sometimes growing slow is better,” If you’re not fully ready to meeting the full demands of an investor, then it might be best to hold off.

Follow BlackEnterprise.com’s coverage of 2013 South by Southwest (SXSW) at blackenterprise.com/technology.

A self-directed IRA allows you to invest in things other than securities registered with state or federal authorities. For example, you can use the assets in a self-directed IRA to buy a rental property or as a down payment for a mortgage on a rental property. You can even invest in a small business. With self-directed IRAs, you have more investment options so there should be potential for a higher return on investment. Often, the elderly are disproportionately targeted.

So what are the drawbacks?

If you lose money, you can’t deduct your losses, and you won’t get capital gains treatment on profits when you make withdrawals.

Making certain that your investment choice is a good one is vital. Yes, investing in a small business can be lucrative, but do you fully understand the deal, will the business be a success and turn a profit?

You also need to make sure your investment is legitimate and secure. Your IRA trustee will not review your investment choices. It will only provide you with statements.

And the biggest potential problem with self-directed IRAs: the potential for fraud. Scams involving self-directed IRAs are increasing in number. The Securities and Exchange Commission went so far as to issue an investor alert on self-directed IRA fraud and discussed incidents that targeted senior citizens through free lunch investment seminars and several elaborate and fraudulent Ponzi schemes (www.sec.gov/investor/alerts/spiral.pdf).

If you are tempted to try out the self-directed IRA be cautious and informed. If someone is offering a guaranteed return, or a very high return, run in the other direction. Avoid those that are pushing you to invest and check out the person offering the investment with the Securities and Exchange Commission and your state securities administrator. In addition, there are self-dealing restrictions on certain types of investments so be sure to engage an investment professional or tax lawyer before investing.

With increased market volatility and an economy that has been in flux for several years,  many investors have been seeking an alternative to stocks, but before you turn to self-directed IRAs as a viable option be sure to do the research to protect yourself or don’t do it.

Black Enterprise Columnist Jennifer Streaks is a Financial Expert, Author and Pundit. Continue the conversation by following her on twitter @jstreaks or on her website www.JenniferStreaks.com.

In an effort to do its part to get America back on the track to solvency the Fed has implemented quantitative easing, a program designed to keep interest rates low as a means of stimulus. The stimulus has been great for borrowers, but not as kind to savers. Still, the Fed stands by the controversial program and has been vague about when it will begin to pursue another course of action.

Now, the agency has revealed that it will continue to buy $40 billion of mortgage-backed securities each month, plus an additional $45 billion in Treasuries. This is a step up from Operation Twist, a policy set to end this month that swapped short-term Treasuries the Fed already owned for longer term bonds, according to CNN Money.

The Fed will continue this aggressive action until it sees a significant drop in unemployment. What’s the magic number? 6.5 percent and below or when inflation hits 2.5 percent.

“Although the unemployment rate has declined somewhat since the summer, it remains elevated,” the Federal Reserve said in a statement Wednesday.

For more on the Fed’s actions and what it means for your bank account, head to CNN Money.

Beginning this year, consumers can no longer walk into a branch and pick up a savings bond for the kiddos in their lives. Nope, now people have to buy digital bonds that, by all accounts, are time consuming, difficult and frustrating to purchase.

With paper bonds, all one had to do was walk into the financial institution and purchase the bond with the recipients social security number; with this electronic process, the buyer must open an online account and the recipient must open a TreasuryDirect account. Parents even get to join in on the fun and set up TreasuryDirect minor-linked accounts for each child under 18.

This is a point of frustration for those interested in purchasing the slow-growing money option. In 2012, people purchased $1.9 billion worth of digital and paper bonds, and of that total $1.4 billion were paper bond purchases. Now paper isn’t an option.

For some the process can take up to 45 minutes and let’s not forget that the entire process is done online. Head over to USA Today to find out why what was once a trusty gift is now a headache and hassle.

Currently, the estate and gift tax is 35 percent on all gifts ranging from $1 million to $5.12 million. Gifts above that amount aren’t taxed. If the government decides to let the current exemptions expire then the tax rate will spike to 55 percent, and upper middle class, wealthy — and retirees aren’t about that life.

“It’s crazy,” Richard Behrendt, Director of Estate Planning for Baird’s Private Wealth Management told CNN Money. “I bet more wealth is transferred this year than in the past 10 years combined.”

Other analysts predict that more wealth will be given away or redistributed three to four times than it ever has been in previous years.

It’s a gamble though, deciding what stays and goes means having to guess how the markets will turn out. Gifting a hot stock may cause the estate to pay less taxes than say giving away a real estate holding, but if and when the housing market resurges, it could be a great boon for the recipient.

There is hope for those who have invested wisely and fear that taxes will eat a large chunk of what they’ve saved. CNN Money has more on ways to make the tax hike work for you.

Dun & Bradstreet Credibility, a credit reporting and monitoring firm for businesses, announced last Friday that it will now offer a 529 college savings plan match to its 600 employees, just like many companies match 401(k) contributions. They are the first U.S. company to provide such a perk to employees.

The company will match annual contributions up to $2,500 for salaried workers and $1,000 for hourly employees, dollar for dollar.

A 529 college savings plan lets you deposit money for college expenses, and the funds are exempt from federal tax if they go directly toward qualifying education costs like tuition.

Read more at CNN Money.