A high income but no time for you
05 Aug 2019
Earning a high income is a great start to financial success, but it's what you do with your money that dictates whether you will ultimately succeed or fail.
Many people fit the description of “high income earner” but aren’t independently building wealth early enough to see their lifestyle sustained throughout retirement. Here, we look at why seeking professional financial advice early is key to achieving long-term financial security, especially for high income earners.
High income, low financial IQ?
High-powered jobs demand long work hours, often including weekends, and limited family time. Add smartphones to the mix, and people are increasingly tied to their work and expected to be “online” at all times. As such, busy professionals often defer or simply ignore the need for long-term financial planning.
Similarly, high income earners often rely on “quick wins” like tax deductions, either through tax schemes or negative gearing, without considering wealth creation and diversification strategies.These deductions heavily promoted as the end of the financial year approaches, meaning many time-poor professionals let perceived tax benefits get in the way of proper research and carefully considered financial planning.
Many people also fail to address key financial planning questions, such as:
- How much do I spend each month?
- How much should I be saving?
- Will my family be protected if something happens to me?
- When can I afford to retire?
In other words, simply earning a high income isn’t enough to guarantee long-term financial security for you and your family. Without smart wealth-building strategies and long-term financial goals, you’re likely to lose out on substantial returns from your hard-earned money.
Delegating financial planning: The secret to success
Most high income earners are skilled at delegating, so it makes sense that they should put their put their financial planning needs in the trusted hands of a professional financial adviser. With the right partnership, a high income earner can be assured of their long-term financial security without having to give up any more of their limited free time.
A professional financial planner can help with:
- setting short-term and long-term financial goals
- managing cash flow
- having a savings plan
- structuring your affairs tax-effectively
- managing tax
- investing and growing your nest egg.
If you are in this position but don’t have a clear financial plan in place, it could be time to talk to a professional financial adviser. Speak to a Shadforth financial specialist for trusted guidance on building and protecting your wealth.
To learn more about Phillip, view his online profile.