Financial Lessons from a Founding Father
July 12th marks the 215th anniversary of Alexander Hamilton’s death. As the first secretary of the treasury for America, he created the first national bank, consolidated the new country’s war debts, and established credit the country could count on. You could say he was America’s, Chief Financial Officer. He was also a self-taught immigrant who started off with no wealth and ended up on the $10 bill. Thanks to his killer, Aaron Burr, Hamilton never reached retirement. But we can learn important financial lessons from the Founding Father who built our country’s financial system.
Know your finances
Hamilton grew up poor and was concerned with his own financial wellbeing, and the country’s in the long term. He wanted America to have a good financial system credit status. After the Revolutionary War, the country had $75 million of debt. Hamilton untangled the messy financial situation, bundled all securities, and reissued them – George Washington had some of the first Treasury bonds. Building wealth takes knowledge and a long-term vision for your finances. There are retirement strategies for high-income earners that address tax burdens, investment risk, and income planning.
Adapt and react
Hamilton could be stubborn, but he also knew how to compromise. In 1790, there was a divide as to where the Capitol of the country would be. Both the north and the south wanted it, so Hamilton struck a deal where the capitol would be in the middle. In exchange, he got enough votes to pass his assumption bill that allowed the federal government to assume state debts. There could be any number of problems that arise as you near retirement, and the ability to adapt your plan is crucial. Market volatility and personal crisis may come, but your retirement doesn’t have to suffer.
The importance of hard work
Alexander Hamilton was very intelligent, but he also worked hard to get ahead in life. He spent hours reading, writing, learning, and perfecting his work, and said “men give me credit for some genius. All the genius I have lies in this; when I have a subject in hand, I study it profoundly. Day and night it is before me.”
This is a testament to the fact that there’s no magic bullet for getting your financial affairs in order. Retirement planning is a long-term activity that the professionals at Peak Financial Freedom Group have dedicated years to practicing. You’ve worked hard to save for retirement and should have a solid plan for the next 30 plus years. Click here to schedule your no-cost, no-obligation financial review today.