3 Financial Moves To Make


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If you’re someone who earns a lot of money (like, low to mid six figures) but you don’t have enough saved or invested to be considered “rich,” you most likely fall into a group of earners known as HENRYs. The acronym stands for High Earner, Not Rich Yet.

The term isn’t new; it’s been around since 2003 and was coined by writer Shawn Tully in a Fortune Magazine article. Despite their higher-than-average salaries, some HENRYs don’t think they’ll become rich because of factors like high tax rates, high cost of living and low savings. Others may be on their way to building their wealth but, though they’re off to an impactful start, they still need some extra guidance.

So Select asked Priya Malani, the co-founder and CEO of Stash Wealth, to share some financial moves HENRYs should consider making. Stash Wealth was created especially for advising high earners who aren’t yet rich. Here’s what Malani thinks HENRYs should focus on once they have their other financial bases covered.

Invest outside of your retirement accounts

Financial planners typically recommend that everyone contribute to their workplace 401(k) account (if they are employed by a company, or a solo 401(k) if they are self-employed). The advice usually encourages employees to contribute at least up to the amount needed for their company to match their contributions. This way, they can take full advantage of the opportunity to receive as much additional money for their 401(k) as possible.

It’s also usually recommended that individuals set up an individual retirement account (IRA for short) so they can make retirement contributions outside of just their 401(k). IRA’s have a contribution limit of $6,000 per year, which can really increase your overall cushion of retirement savings. Plus, you don’t have to work with an employer to open up an IRA — you can set up an account for yourself through Fidelity or Charles Schwab, or through robo-advisors like Wealthfront and Betterment.

But if you’ve addressed those accounts and still have some discretionary income, you can take your contributions to another level. Malani recommends beginning to invest your money beyond just your retirement accounts.

You might consider opening a taxable brokerage account to invest in stocks, ETFs, index funds or mutual funds. If you don’t want to put in too much work to manage your additional investments, or if you’re still new to investing, you might consider putting your money in index funds. This type of asset is a passively managed fund that allows you to put money into a basket of the largest US companies with low fees and minimal risk. Mutual funds, by comparison, are actively managed by a fund manager and usually carry higher fees.

Select narrowed down some of the best investing apps and Betterment made it out on top for its automated investing features, and Robinhood was recommended for those who want a more hands-on approach to their investing.

Lower your taxable income

Double check your retirement strategy with a financial professional

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