If you earn low to mid six figures but do not yet have enough money saved or invested to be considered rich, you are most likely in the group of earners known as HENRYs, short for High Earner, Not Rich Yet, writes Jasmin Suknanan for CNBC Select.

Priya Malani, the co-founder and CEO of Stash Wealth, a company that was created especially for advising high earners who are not rich yet, shared three financial moves HENRYs should focus on once they have other financial bases covered.

Investing outside retirement accounts

If you have already contributed to your retirement accounts and still have some discretionary income available, you should consider opening a taxable brokerage account. This will allow you to invest in stocks, ETFs, index funds, or mutual funds. Index funds are the best option for those who do not want to put too much work into additional investments or those who are still new to investing.

Lowering taxable income

There are a few strategies to use that will allow you to reduce your taxable 401income and keep more money for your financial goals.

“Work with your accountant to find the ways in which you can lower your taxable income,” said Malani. “One big way [to do that] is by investing in your 401(k), especially up to your company match.”

Another way is to contribute to a Health Savings Account, which will allow you to save a portion of your paycheck for qualifying medical expenses. Money in an HSA can be invested, and its growth is also tax-free.

Retirement strategy

Make sure to solidify your retirement strategy by speaking to a financial professional. This can include discussing how much money you will need to fund your retirement lifestyle and the steps you need to take to start progressing toward that goal.

Fred Hubler, CEO and Chief Wealth Strategist for Creative Capital Wealth Management Group has some additional ideas to help high-wage earners. “Tax-efficient investments,” said Hubler, “are more important as you make more income, paying down any high-interest debt also should be a priority.”

Creative Capital has a retainer-based program to help working professionals and does not require assets to be managed by CCWMG. Hubler states, “we want to give advice to clients and not require them to invest with us, since the first step maybe for them to pay off debt or build up a cash reserve.”

Read more about these financial moves at CNBC Select.

______

Open House – Creative Capital Wealth Management Group – RSVP Today!

The first quarter of a new year offers an opportunity to evaluate how world events, politics and trends might influence and shape economic developments across the Philadelphia region and the United States.

With inflation here to stay and whispers of a global recession looming, now is the time to arm yourself with the information you need to ensure a successful 2023 for you and your business.

At 4:00 PM on the March 22, 2023, Fred Hubler, founder and Chief Wealth Strategist at Creative Capital Wealth Management Group and Greg Care, partner in the Limerick office of Maillie LLP, will share their perspective on global, national, state, and local economic trends and answer your questions about how IRS changes made in 2022 might impact your tax return in 2023.

Open to readers of the weekly Wiser Wealth column on BUCKSCO Today. Attendance is limited to 25 Wiser Wealth readers.

Reserve your ticket on EventBrite today