By Michael Vaughn, CFP®
For many successful families, affluence brings a unique challenge: how to enjoy today’s rewards without compromising tomorrow’s stability. It’s a delicate balance, but a common one among high-net-worth households. That’s why so many seek out strategic wealth support to help align their lifestyle goals with long-term financial planning.
Wondering how your family can make the most of your financial success while preparing for a prosperous future? Explore these practical wealth tips and suggestions designed to support both.
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 Trusted Source for Strategic Wealth Tips
At Pinnacle Family Advisors, we specialize in tailored financial services for affluent individuals. Our wealth tips are designed to help you enjoy the lifestyle you’ve earned while strategically planning for a stable future.
If you’re ready to align today’s success with tomorrow’s legacy, reach out to start the conversation by emailing me at [email protected], calling (417) 351-2942, or using my online calendar.
About Michael
Michael Vaughn is a CERTIFIED FINANCIAL PLANNER® professional and Vice President at Pinnacle Family Advisors (PFA) with 24 years of industry experience. Before joining the PFA family, he served clients with investment management and retirement planning at The Mutual Fund Store for 14 years. Michael graduated from Missouri State University with a bachelor’s degree in business administration and management and earned his CFP® certification in 2004. He also served 20 years in the Missouri National Guard, retiring in 2007 as a Major. He currently volunteers on the board of directors for Good Dads and Fellowship of Christian Athletes. Michael is married to Lori and they have two daughters. To learn more about Michael, connect with him on LinkedIn.