By Bryan Trugman, CFP®
Successful families often face a unique challenge: balancing the enjoyment of today’s affluence with planning for a stable retirement. It’s a “good problem to have,” but one that requires the right mindset and thoughtful guidance. Finding practical support can make balancing lifestyle and retirement easier.
So, how can your family savor the rewards of your hard work while building a prosperous future? Here, we share practical wealth tips and strategies to help you enjoy the present with the right attitude, without compromising tomorrow.
Luxury and Longevity Defined
The concept of luxury manifests in many forms. Opulent homes, international travel, exclusive clubs, and high-value possessions are just a few of the trappings wealthy families earn through hard work.
But enjoying luxury in the present needs a counterbalance: a long-term financial strategy. It’s more than having enough for today. It involves making your wealth sustainable for the future. As retirement draws near, having that plan in place is essential.
One of the key wealth tips for affluent families is to establish that structure. This is particularly crucial when families must steer through difficult times and economic uncertainty that can arise at any moment.
Challenges for Wealthy Families
Affluent individuals face unique challenges that dictate special consideration. A great number of our clients earn high and stable incomes that give them special opportunities for building wealth. On top of regular salaries, those opportunities might include stock options and lucrative compensation packages.
The challenge lies in managing this wealth. A mindful strategy that includes tax management, legacy planning, retirement, and wealth transfer is a powerful tool. It can help to keep you and your family from the pitfalls of overconsumption by maintaining sustainable wealth.
Aligning your assets and earnings with future, long-term goals is one of the most effective wealth tips to follow.
Wealth Tips for Striking a Balance
While you have every right to enjoy indulgences from time to time, it’s important to keep those luxuries in line with plans for retirement and beyond. Here are some meaningful wealth tips.
Set Clear Goals
Put your financial priorities above all else. Make thoughtfully considered and attainable goals that correspond to your family’s long-term needs. These can include funding education, estate and legacy plans, and building retirement capital.
Make Appreciating Investments
Assets like real estate, fine art, and value stocks tend to gain in value over the long haul. This sets them apart from temporary extravagances. Appreciable assets can provide consistent, passive revenue while building for the future.
Review Your Portfolio Often
No matter how much you earn, keeping tabs on your investments is vital. As you move toward the future, review your portfolio and make adjustments from time to time. Strive to diversify your holdings to mitigate risk. Your needs should change as you go through life stages, so adapt your portfolio accordingly.
Actionable Steps to Take Now
As you get closer to retirement, you can take a few actions that can preserve your financial balance while enjoying the present.
Max Out Retirement Fund Contributions
Contribute to your 401(k), pension plans, and brokerage accounts to their maximum annual limits (if applicable). This is particularly important if your employer matches your contributions.
Set a Luxury Spending Plan
While you may have more financial freedom than others, it’s still important to keep an eye on how much you spend on luxury items. Earmark a percentage of your annual income for those as you continue saving and investing.
Develop an Estate Plan
Include wills, trusts, and wealth transfer strategies in a well-rounded estate plan. Start building your legacy in the present by allocating your wealth to your beneficiaries’ futures.
Your Go-To Partner for Practical Wealth Tips
At Attitude Financial Advisors, we understand the unique financial needs of affluent individuals. If you’re looking for practical wealth tips and strategies that help you enjoy today while building a stable future, we invite you to connect.
Reach out to me via email at btrugman@attitudefinancial.com or give me a call at (516) 762-7603 to set up a free consultation.
About Bryan
Bryan Trugman is managing partner, co-founder, and a CERTIFIED FINANCIAL PLANNER® practitioner at Attitude Financial Advisors. With more than 17 years of experience, Bryan specializes in addressing the financial needs of new parents as they seek to realign their finances, assisting divorced individuals as they navigate an unforeseen fork in the road, and strategizing with those seeking to accrue a dependable retirement nest egg. Bryan is known for being a good listener and building strong relationships with his clients so he can help them develop a customized financial plan based on what’s important to them. He is passionate about helping his clients experience financial confidence so they can worry less and play more. Bryan has a bachelor’s degree in industrial and systems engineering with a minor in mathematics from State University of New York at Binghamton. He has served on the board of the Financial Planning Association and continues to be actively involved in the national organization. He is also a member of the Plainview-Old Bethpage Chamber of Commerce and has served as its vice president and as a board member. When he’s not working, you can find Bryan on the ballroom dance floor or engaged in a fast-paced game of doubles on the tennis court. To learn more about Bryan, connect with him on LinkedIn. Or, watch his latest webinar on: How Much Is Enough? A Surprisingly Simple Way to Calculate Your Retirement Savings Needs.
