Helsinki to Dallas. Different countries, different financial systems, but the same goal: helping people build a stronger financial future.

From inheritance taxes to 401(k)s, here are the financial differences that surprised me most after moving from Finland to Texas. 

After several years advising affluent clients in Finland, I became familiar with the Nordic approach to wealth building, retirement planning, and long-term investing.

Relocating to Texas gave me the opportunity to view personal finance through an entirely different lens. 

Within a few months, I found myself learning an entirely new financial language: 401(k)s, Roth IRAs, HSAs, employer matches, credit scores, annuities, and a retirement system that looked nothing like the one I had worked with in Europe.

To better understand the U.S. financial industry, I began studying for the Securities Industry Essentials (SIE) exam, which is very similar to the General Securities Examination (APV1) in Finland. 

As I worked through the SIE material, I found myself repeatedly impressed by the opportunities available to ordinary employees and investors. 

One of the first questions people ask me here after learning about my background is:

"What are the biggest financial differences between Finland and the United States?"

After several months of studying the U.S. system, here are the observations that surprised me the most.

Surprise #1: Wealth Is Taxed Very Differently

I expected the tax rules to be different. I didn't expect them to be this different. 

So let’s start with my favorite topic: taxes.

Coming from Finland, I was used to a relatively straightforward system - and relatively high taxes by international standards. Capital gains are generally taxed at 30% (34% above €30,000), and the rules are largely the same whether you live in Helsinki or Lapland. Income is taxed progressively and depending on the income level, a high-earning employee may face marginal tax rates exceeding 50% (a table of tax rates here).

The United States immediately felt different.

Here, taxation depends not only on how much you earn, but also on where you live, whether you're married, how long you've held an investment, and even which type of account you're using. On top of federal taxation, many states impose their own taxes and operate under their own tax rules. 

Texas was one of my first pleasant surprises. The state does not levy a personal income tax or capital gain tax, meaning residents pay these taxes only at the federal level. This can significantly impact long-term wealth accumulation and retirement planning for many households. I’m not the only one noticing this - people and companies are moving from other states, especially California, to Texas. Taxes are certainly not the only reason people move to Texas, but they are part of what makes the state one of the most attractive business environments in the country.

For someone used to the Finnish system, the numbers can be eye-opening. Income at the federal level is taxed between 10%-37%, depending how you file your taxes. Capital gains for long-term assets are taxed 0%, 15%, or 20% depending on your total taxable income and filing status. And when I consider gift giving, which can be a part of smart estate planning, in the U.S. you can gift up to $19,000 per recipient, per year without triggering any federal reporting requirements or taxes. In Finland the same number is €7,500 per recipient, every three years. Otherwise the recipient is taxed progressively. 

The difference that made me stop and reread the textbook wasn't capital gains tax.

It was inheritance.

In Finland, inheritances above €30,000 are generally subject to inheritance tax. Depending on the size of the estate and family relationship, the tax can become substantial. (Here’s an inheritance tax calculator, if you're interested.)

Texas does not levy an inheritance tax, and only a handful of U.S. states do. There is however, a federal estate tax if the net worth of the estate exceeds a threshold. For 2026, an individual can pass on up to $15 million to heirs before any federal estate tax applies, meaning most American families will never encounter it.

As a wealth advisor, I find these differences fascinating because they influence not only investment decisions but also long-term family wealth planning and our attitudes towards wealth building.

Dallas skyline viewed from the Dallas Arboretum and Botanical Garden © Henna Harala

Surprise #2: Retirement Is Your Responsibility 

The biggest difference is not the products.

It's ownership.

As a Finn, I grew up in a system where retirement is largely viewed as something society provides. In Finland, retirement savings are largely managed collectively through the earnings-related pension system. Employees contribute a portion of their earnings throughout their careers, but unlike many American retirement accounts, individuals do not typically see a personal investment account balance that they control directly.

Instead, pension statements estimate future monthly retirement income based on earnings history and projected retirement age.

In the United States, retirement often feels much more personal.

Individuals are expected to actively participate in building their own retirement wealth. Employees contribute to employer-sponsored plans such as 401(k)s, often receiving matching contributions from their employer.

The concept of an employer match was particularly interesting to me. In practice, many employers reward employees for saving by contributing additional money to their retirement account based on how much you contribute from your own paycheck (median employer match is 4%). It is essentially "free money" that accelerates retirement savings.

With greater freedom comes greater responsibility.

It’s up to you to decide how much to save, how aggressively to invest, and how your portfolio is allocated. The upside is flexibility. The downside is that financial literacy becomes essential.

The system rewards those who learn how it works.

So, Which System Is Better?

After spending years advising clients in Finland and now beginning my journey in the United States, I've come to appreciate that both systems have strengths worth learning from.

Finland offers stability, simplicity, and a strong social safety net.

The United States offers flexibility, personal choice, and powerful incentives for long-term investing.

Neither system guarantees financial success.

What I’ve noticed is that whether you live in Finland or Texas, building wealth still comes down to a handful of timeless principles:

• Spend less than you earn.
• Invest consistently.
• Stay diversified.
• Prioritize long term goals over short term noise.
• Give your money time to grow.

The accounts may be different.
The tax rules may be different.
The tools may be different.

Human behavior isn't.

And that's perhaps the most encouraging lesson I've learned since moving to Texas.

About the Author

Henna Harala is a Finnish finance professional and former Wealth Advisor who recently relocated to Texas. After advising affluent clients in Finland, she is now building her career in the U.S. financial industry. Henna writes about investing, personal finance, wealth building, and the differences between life and finance in Finland and the United States.

This blog will soon move to hennaharala.com.