As we step into 2025 with a new administration, you may be wondering if you’re on the right track with your finances. Am I saving enough? What do I do with my stock options? Can I retire early? What do I do if the market is down?
With the right strategies in place, high-income earners can strive to make the most of their financial potential. Here are five things to keep in mind when thinking about maximizing your wealth this year:
1. Refine Your Financial Goals
Whether you’re looking to expand your business, spend more time with your family, or take that vacation you’ve always dreamed of, it’s important to think about what your goals are. Try creating a vision board of what you want your future to look like or write down your goals. Be sure that you’re able to measure your goals in some way so that you’re able to track your progress and see if you’re on track.
2. Aim to be Tax Efficient
Tax planning becomes increasingly important as your income grows. In 2025, high earners can look to take advantage of tax-saving opportunities. Maximizing contributions to tax-advantaged accounts like 401(k)s, IRAs, and Health Savings Accounts (HSAs) can be one strategy. You can also consider strategies like tax-loss harvesting to minimize liabilities. Be sure to stay in touch with current events, as your tax strategy may need to adapt to shifting government policies.
3. Review Your Estate Plan
As your wealth increases, you may start thinking about passing it down to your kids or grandchildren. Estate planning is not just about drafting a will – it’s about creating a comprehensive strategy that addresses your wealth distribution, minimizes estate taxes, and protects your assets from potential risks.
4. Make a Spending Plan
As a high-income earner, you likely already have a savings plan in place, but building wealth isn’t just about savings. Our advisors often recommend having a spending plan. Unlike a budget, which can be restrictive, a spending plan can help you maintain your lifestyle without sacrificing long-term growth. That can assist you in fully enjoying the phase of life you’re in, while planning for the next.
5. Consider Partnering with a Financial Advisor
Worrying about your finances is a common stressor, no matter your income level. Working with a financial advisor may help you relax, knowing that someone else is doing the worrying for you. Knowing that you have a plan in place and a trusted partner to act as a sounding board for life’s major decisions and events, can hopefully invite some peace of mind.
Ready to take control of your financial journey? Schedule a consultation with a fee-only advisor at Marshall Financial to discuss personalized strategies for your wealth management.
