There is no shortage of articles suggesting what you should do with your tax refund.

This is a reminder to proceed with caution when anyone gives you advice about what to do with your money without knowing your family’s current financial situation, your unique goals, and your time horizon for those goals.

So, I’m not going to tell you what you should do with your tax refund, bonus, equity compensation, or any other lump sum of money you receive. But here are the things to think through as you’re deciding what to do:

1. Define the goal (or goals) you are saving for. 

It can be hard to know exactly what your goals are, especially when they are years into the future, like saving for retirement. But it’s important to at least take an educated guess and give yourself something to work toward.

2. Think about how flexible you want your savings to be. 

For example, do you want to retire early? If so, you might want to have a portion of your retirement savings in accounts that you can access without penalties before age 59 1/2.

The same goes for college savings. Are you 100% certain you have a kid who will go to college? Then a 529 plan is a great option. Not so sure what your kids’ plans will be after high school? You may want to think about stashing more college savings in a brokerage account that doesn’t require the money to be used for any particular purpose.

3. Know what the time horizon is for each of your goals. 

You can’t decide how to invest your savings without having at least a rough idea of when you will need the money. The longer your time horizon, the more aggressively you can invest. But remember, you have to make your investments gradually more conservative as you get closer to your goal.

So if you do come across one of these articles, at least make sure you think through the items above before taking any action.

Joe Calvetti is a CPA and the founder of Still River Financial Planning, a comprehensive, fee-only financial planning firm that specializes in working with young families and professionals. Click here to learn more about how we work with clients.

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Disclaimer: The information provided above is for educational purposes only and should not be considered financial, legal, or tax advice. You should consult with a professional for advice specific to your situation.