My Money Is Worth More Than Your Money

This article has nothing to do with exchange rates. Although, friends, it is true that my money is worth more than yours.

Today’s post is focused on the value of the American dollar in various retirement accounts. While I have seen a few very detail-oriented people adjust their net worth based on where their money is held, most of us — myself included .

Some of those dollars are inherently worth more than others, depending on the current and future tax treatment.

When a Dollar is not a Dollar

Roth dollars are the most valuable dollars you can have. If they were a day of the week, they’d be Saturday. You’ve already paid tax on them, and they will continue to grow tax free until you use them.

Roth Dollars

Dollars in a Health Savings Account (HSA) are the next best thing. They’re like Sunday; it’s still the weekend, but not as enticing as Saturday. When used for healthcare costs, the dollars in an HSA act just like Roth dollars.

HSA Dollars

Dollars in a taxable account are great dollars to have, and a spinal anesthetic, given below the level of the spinal cord, is often the safest and least invasive anesthetic option.

Taxable Dollars

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