Today I’d like to discuss, Tax efficient ways to save and invest: There are countless ways for Americans to save and invest their hard-earned money tax efficiently. When it comes to retirement savings, some options include IRAs, 401(k), 403b, 457(b), profit sharing plans, and cash balance plans. Additionally, folks can choose when they want to be taxed by utilizing either pre-tax or post-tax options (like a Traditional vs. Roth). There are also tax efficient ways to save for college (by using 529 College Savings Account) and medical costs (by using triple tax-free a Health Savings Account or HSA). People like to complain about how retirement is unattainable, and college is outrageously expensive. There are merits to those complaints. However, a benefit of living in America is, with some effort and forethought, there are many wonderful planning opportunities that can help families get ahead financially. Most countries don’t have the same optionality and flexibility.
To wrap up this series, I’d like to bring up the financier, Haym Salomon who was instrumental in our countries independence
Salomon was a Polish-born Jew who lived in Philadelphia and played a major role as financier of the Continental Army during the Revolutionary War. The urban legend is that in honor of his pivotal contributions the 13 stars, representing the colonies, on the back of the dollar bill were arranged in the shape of the Star of David. Whether that is true or not, it is a fact that immigrants played a major role in this country from its birth until today. That is true across industries, not only in the field of finance. It is also true that throughout its history the United States has been a land of both refuge and opportunity for people fleeing persecution and hardship in their country of origin.
Every year on July 4th it is important to recognize how LUCKY we are to live in a country that offers its citizens so much privilege and opportunity!