High-Income Financial Planning

Mo’ Money, Mo’ Planning…Needed

High-income earners encounter a financial landscape filled with exceptional opportunities and challenges.

Our approach to high-income financial planning is designed to help you maximize your wealth potential, protect against unforeseen risks, reach your most important goals, and achieve full financial fulfillment. We focus on the following key areas to ensure your financial plan is both resilient and optimized for long-term success:

1. Tax Optimization

High incomes come with significant tax obligations, making strategic tax planning essential. This includes maximizing contributions to tax-advantaged retirement accounts, utilizing tax-loss harvesting, and making charitable contributions through vehicles like donor-advised funds. For high-income earners, it’s also critical to consider the impact of the Alternative Minimum Tax (AMT). Proactive strategies—such as timing income and deductions, managing the exercise of stock options, and maximizing contributions to tax-deferred accounts—can help minimize AMT exposure and ensure you’re not caught off guard by an unexpected tax bill.

2. Investment Diversification and Account Selection

Building and preserving wealth requires a well-diversified investment portfolio and thoughtful selection of where your money is saved and invested. Diversification across asset classes—such as stocks, bonds, real estate, and alternatives—helps manage risk and capture growth.

Equally important is ensuring your savings are directed into the right types of accounts: Retirement Accounts, Brokerage Accounts, Specialty Accounts, and Savings Accounts.

Strategically allocating your investments—often called “asset location”—can further enhance after-tax returns by placing tax-inefficient assets in tax-advantaged accounts and tax-efficient assets in taxable accounts.

3. Risk Management and Income Protection

Maintaining a high income can sometimes create a false sense of security. Robust risk management strategies are essential to protect you and your family should your income change unexpectedly. This includes:

Securing adequate disability insurance to replace lost income if you’re unable to work.

Life insurance to provide for your family in case of premature death.

Maintaining an emergency fund to cover several months of living expenses.

These measures ensure that you and your loved ones are financially protected, regardless of changes to your earning capacity.

4. Wealth Preservation and Estate Planning

Protecting your assets and planning for their transfer to future generations is vital. Establishing trusts can help manage asset distribution, avoid probate, and potentially reduce estate taxes. Strategic gifting, within IRS limits, can transfer wealth efficiently while reducing your taxable estate. Comprehensive estate planning—including wills, powers of attorney, and healthcare directives—ensures your wishes are honored and your loved ones are protected.

5. Managing Cash Flow and Lifestyle

Avoiding lifestyle inflation is key to sustainable wealth. Implementing a “reverse budget”—where you save and invest first, then spend what remains—helps maintain disciplined savings habits. Separating fixed and variable expenses, automating savings, and maintaining a clear view of your cash flow can prevent overspending and support long-term financial independence.