No- we are not getting political. I love listening to the debate our our debt ceiling in congress. No matter what they come up with short term, long term we are still in trouble since the amount taken in is less than the amount spent. There were a few years in the 90′s that the reverse was true, but for the last 10 years this has not been the case.
Putting politics aside, I found a brilliant (and legal) loophole that ALL Americans can take advantage of effective immediately. Not even sure if it should be called a loophole since it should be considered common sense and should be standard practice amongst all individuals and businesses.
Many of you are aware of some of the tax credits and local rebates that you can get for going green, but there is even a greater incentive to going green.
Are you ready for this revolutionary concept?
Let me introduce you to the SawHorse Savings plan:
Step 1- Let SawHorse help you with energy savings on your home. This will give you some savings which we will use later.
Step 2- Calculate the amount of net savings per year (after the improvement costs are taken out)
Step 3- Take this amount and put it into a Roth IRA or other tax free savings plan for your future.
So what just happened? You are more comfortable and energy efficient and also are saving for your future tax free? What I did not mention is that if you invest in a traditional IRA, you can actually put more in now since the savings is based on the amount you have left over after taxes are taken out of your pay. The traditional IRA get a tax break so you can afford to invest more than the savings.
Here are some numbers:
Net savings for the year- $2000
ROTH IRA $2000 + interested earned
Traditional IRA- $2000 + plus the taxes you did not have to pay (average $2400 for most tax payers. More if you are in a higher tax bracket)
Bottom line- “A penny not wasted is a penny you can invest tax free.”
This post sponsored by SawHorse, “The Sign of Renovation in Your Neighborhood ®.”
