Wealth management can be difficult if you earn upwards of six figures. Your finances are much more complex than most people, and it can take a lot of time to make sense of it all.
This article will explain how to save time and manage your wealth more effectively. From reducing tax liabilities to looking beyond basic budgeting, strategic investments, and more, let’s kick things off with a critical question for any high earner.
What are your financial priorities?
For people on lower incomes, financial priorities are month-to-month and ensuring things are paid for on time. However, this isn’t robust enough for high earners and more must be done on top of basic budgeting.
If you earn six figures or more, you should focus on maximising returns from all your resources. This means being active in your wealth management rather than simply planning for outgoings like bills.
Examples of active wealth management include setting up estate planning, managing large-scale investments, and implementing tax strategies to build your wealth over time.
Time vs Money
Time becomes more valuable than money when you earn a certain amount, and traditional budgeting can be very time-consuming. So, you should aim to explore different ways to manage your assets.
This may come in the form of new investments or automating certain money management tasks to free up time, maximise your wealth, and enjoy your life.
Implementing wealth management strategies
Many high earners go it alone with their investments and do a great job. However, having a wealth manager who can help with certain aspects of your portfolio, drawing on expertise in that area, can be a Godsend.
Wealth managers can also audit your financial situation periodically to mitigate risk and tax, ensuring long-term wealth is accumulated. This, once again, frees up your time to focus on other areas of your life, as well as your wealth.
Save time with tax mitigation
Having a proper tax mitigation framework helps reduce tax liabilities and make more money, and it frees up the time and stress of dealing with the tax man. It also enables you to reduce inheritance tax liabilities for your loved ones so the only things you pass on are parts of your estate, rather than financial stress.
There are various opportunities for high earners looking to mitigate their tax, from VCT (venture capitalist trusts) to SEIS (Seed Enterprise Investment Scheme) investments, EIS (Enterprise Investment Scheme) investments, and understanding your tax allowances.
Conclusion
At Cedar House Financial, we have the expertise to help high earners like you maximise your wealth now and in the future. With agile strategies that help you save time and manage your wealth, we work closely with our clients to deliver a personal, high-quality service.
Find out more about our wealth management service online or email enquiries@cedarhfs.co.uk to get in touch. You can also call us on 020 8366 4400 to speak to one of our experts directly.