Canada has introduced a new type of tax-free account, and I think this is an idea worth implementing here in the US as well.

Here's the details. Canadians can save up to $5,000 a year in tax-free savings account. Withdrawals can be made at any time, and the funds used for any purpose. There don't seem to be a whole lots of limitations and restrictions, like there are with Roth individual retirement accounts in the US. Contributions to these accounts are not tax deductible, but there's no tax on the earnings and interest. The part I really like is that withdrawals can be made at any time for any reason. That sure beats the 10% penalty Americans pay if they need to cash out their retirement plan early to cover a financial emergency.