There is a misconception that earning a high income equates to being “rich”. However, as you may be painfully aware, wealth does not come automatically. Building wealth takes discipline and an intentional investment strategy. Many factors come into play: cost of living, lifestyle creep, current taxation, diversification of assets and having your financial affairs in order.
For most of us, taxes are our #1 expense. There is little we can do to reduce our current tax liability. Instead, the goal is to build a future income stream that is taxed at a better rate. This is achieved by setting up an automated system NOW to move your current income into accounts that can defer and potentially lessen your tax liability down the road.
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this video will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio. Moreover, you should not assume that any information or any corresponding discussions serves as the receipt of, or as a substitute for, personalized investment advice from Leading Edge Financial Planning personnel. The opinions expressed are those of Leading Edge Financial Planning as of 06/15/2018 and are subject to change at any time due to the changes in market or economic conditions.
(This is the first in a series of videos focused on the challenges of high income earners. We created this series for those who make $200K or more per year. Many of these issues apply to all income levels, but we see them most commonly with our higher income clients. We encourage you to reach out to us with any questions.)