We’ve provided financial planning to high earners in their 30s and 40s for decades. We’ve seen it all: The ways to win big, the huge mistakes to avoid, and the blindspots that almost everyone has.
One consistent roadblock that these high earners run into is actually quite simple (and thus, easily overlooked): They haven’t had the time or impetus to look at the entirety of their financial life.
This applies whether you’re currently building wealth or whether you fall into the dubious category known as HENRYs (High Earners, Not Yet Rich).
If that term is new to you, it simply means that your income is high (around $250K+) but it’s all going toward debt or high living expenses.
Both groups need to look at the entirety of their financial life. even if your debts and cost of living are taking a large chunk of your income, that’s often easier to fix than you might think.
For High Earners in Their 30s and 40s, If You’re Not Looking at Everything, Mistakes and Missed Opportunities Are Inevitable
High earners in their 30s and 40s, even if they have major debts and living costs, often have made some efforts to save for their retirement, even if those efforts haven’t exactly been coordinated.
For example, you and your spouse may both have been wise enough to make your maximum possible contributions to your 401(k) accounts each year. Perhaps you’ve got an investment account that’s been doing well, or maybe you bought some property that’s appreciated.
While generating wealth is always good, it’s often done haphazardly, and it may not be optimized.
For example, you might be focused on paying down some debts when that same money might actually be better spent on specific types of investments. You might be investing in a way that will burden you with unnecessary taxes down the road or that come with tax implications you aren’t aware of.
You might also be missing better investments that would help you reach your financial goals faster, or investments that are simply higher value, period.
You might also be missing major opportunities to use the investments and assets you already have together as a way to build even more wealth than the average person.
For example, you might think you earn too much to contribute to a Roth IRA (and be right), but you might not know that you can use a strategy like a mega backdoor Roth to contribute to one anyway.
But maybe most important of all, you might be saving and investing in a way that won’t help you reach your short-term and long-term financial goals.
What Are Your Financial Goals? Are Your Investments and Assets Helping You Reach Those Goals?
What’s far more important than any specific strategy is where that strategy is taking you in the first place.
Most of our high earners in their 30s and 40s aren’t thinking about retirement just yet; they’re more focused on their children and the looming cost of college.
While retirement is something they’re thinking about vaguely, that large expense that’s far nearer should likely be their focus. Saving for your child’s college education looks different for everyone, and the more children you have, the more complex it becomes.
A handful of investments and assets spread about at random may cover that cost, or they may not. Worse, their may be far more cost-effective means of saving for these large expenses that you’re missing entirely.
But suppose you don’t have children currently and instead want to adopt. This major expense may come due almost immediately upon beginning your search, or it may be years down the road.
Saving for something that is so potentially variable is far different than saving for a college education that will happen at a known point in time.
These are just examples. Replace any of them with some other goal you have. Maybe you want to buy a large piece of property in an expensive area some day. Maybe you want to start investing in small businesses, or franchises, or short-term rentals—there are so many options, and each one requires a unique strategy.
Now throw in the fact that, in every one of these scenarios, the high earners in question still plan to retire some day, and that those retirement plans could include everything from traveling the world for years to retiring in their late 50s to buying a lakehouse, and you start to see how this incredible complexity can only truly be handled by looking at the entire picture.
All your assets, all your goals, and everything in between—and then creating an overarching financial plan that ensures every single one of your goals can be met.
Financial Planning for High Earners in Their 30s and 40s: Your 360º Future™ Is Now. Let’s Get Started!
Financial planning for high earners in their 30s and 40s is as unique as you are. To make the most of your income and ensure you’re able to not simply meet these goals but your retirement goals as well requires you to look at the big picture.
That’s what we specialize in, using a unique framework to examine every aspect of your life.
It’s called Your 360º Future™, a blueprint that looks at these major areas of your financial future:
Estate & Legacy Planning
Tax Integration
Risk Management & Insurance
360º Asset Strategy™
Looking at all these areas of your financial life and integrating your goals for the future allows us to craft a unique plan that is best positioned to get you where you want to be.
Schedule a free consultation now to get started. We’ll dive into your assets, your income sources, your goals, and how we can combine them together to help you build the future you’re dreaming of.
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