Stage 3 of Your Financial Life

Peak Earning Years

By Tom Kirk

Your WealthPlan is about to get a double bonus.

At this stage of wealth it is not uncommon to have twenty to thirty years of knowledge, background and experience in your field. You are now sought after for your wisdom, decision making and judgement and you command the high earnings ability that goes with such responsibility.

At the same time, your kids are through college or on their own, your mortgage is paid off or close to it and you now own the houses, cars and other toys you always wanted. Don’t take your eyes off the prize of financial independence. The following actions should be taken now to help bring you across that finish line.

  1. Max fund your retirement plans – You should already be at maximum funding for your 401(k) and profit sharing plans by now. But many companies also offer additional savings opportunities through deferred compensation plans such as a Supplement Executive Retirement Plan (SERP). Take maximum advantage of these as well.
  2. Optimize your investments – Be deliberate about the risk you are now taking with your investments and the return you need in order to accomplish your financial dreams. Don’t be more aggressive than necessary and suffer a big loss this late in the game.
  3. Use debt strategically – Carrying debt should be a preference item for you at this stage. You can take it or leave it. Carry debt if you want to take advantage of arbitrage opportunities. Pay it off if you would prefer to be debt free.
  4. Protect your assets – Secure adequate multi-peril umbrella insurance to help protect your assets from a multi-million dollar judgement that could arise from an auto accident or other peril. Consider long-term care insurance to help provide the necessary funds should you, your spouse or your parents need them.
  5. Direct your estate – Decide who is going to get your money and when, then have an attorney write this down as your estate plan. This keeps the State and Federal governments from deciding who gets your family’s wealth.

Our wealth management services firm in Satellite Beach, FL – Melbourne/Brevard area knows during this stage of wealth you may see your net worth double or triple in value and with this increasing wealth can come increasing complexity. It is more important than ever to make your financial decisions so that they each support the other, moving you ever closer to your next stage of wealth – financial independence. For more information on how one of our WealthCoaches™ can help guide you through The Five Stages of Your Financial Life, give us a call at (321) 773-7773 or visit our website at today!