Happy Bastille Day!
The American revolution was triggered by the notion that those who are taxed should get a say in how they are governed. The French Revolution - on the other hand - was a struggle between an autocratic history that depended on the feudal system and the general peasant population. The Bastille was a prison in Paris that became the holding place for political figures who fell out of favor with the monarchy. It all started when Louis XVI dismissed his finance minister (Jacques Necker) on July 11. Necker was sympathetic to the cause of the "other" 90% (namely the Third Estate) about whom Marie Antoinette is rumored to have said "let them eat cake." Cake being a luxury food that very few French could afford as they spent roughly 50% of their wages on their daily bread. The peasants took to arms and stormed the Bastille on July 14, 1789. A few weeks later, the feudal system was history.
Pay Yourself First!
One of the most powerful ways for us to claim our own independence is through a tax advantaged savings account. If you work for a large company, this could take the form of a 401(k) plan or a profit sharing structure. Small business owners often set up their SIMPLE and SEP accounts to help them accelerate their retirement plans after years of toil caring for their "baby" of laissez faire capitalism. Individual investors have the unique opportunity each year to set up recurring - or one time - payments into their IRAs. You have just 24 more hours to make those contributions count toward tax year 2019 and receive immediate tax benefits (in the form of an income deduction) or lasting benefits in the form of untaxed capital gains. The number one objective is to pay yourself first!
Now File Your Taxes!
We have all endured a healthcare battle this spring that has left many hungry and weary for something to brighten our summer days. The French Open tennis tournament is finally on the calendar and baseball season is only 9 days away here in the US. Once you file your tax return we can all move onto something much more important - like enjoying the summer. Hit that "enter" button and stay safe!