Ryan Gomez, CFP® Outlines Wealth-Building Strategy for High Earners on LinkedIn

In a recent LinkedIn post, Ryan Gomez, CFP® discusses a comprehensive financial strategy tailored for high-earning sales professionals, emphasizing planning over income alone. The post details a three-pronged approach to achieving significant financial goals, including purchasing a home, attaining financial independence, and minimizing tax liabilities.

Gomez, CFP®, who works with many Account Executives (AEs), highlights that building wealth is less about the size of one’s paycheck and more about having a structured financial plan in place.

“The AEs I work with who actually build wealth aren’t the ones with the highest incomes. They’re the ones that have a plan plan set up before their paychecks hit their accounts.”

Strategic Planning for Homeownership

For a client earning $180,000 annually and aiming for a $200,000 home down payment, Gomez, CFP® outlines a clear savings and investment strategy. This involves utilizing a stock and bond portfolio with a five-year timeline for the down payment funds. He stresses the importance of automating savings immediately after paychecks and commissions are received.

Furthermore, Gomez, CFP® advises diversifying restricted stock units (RSUs) and employee stock purchase plans (ESPPs) after each vesting or offering period. This diversification strategy is crucial for managing risk and maximizing the growth potential of these compensation components.

“Stock/Bond portfolio for 5-year timeline. Automate savings after paycheck/commissions hit. Diversify RSUs & ESPP after each vest/offering period.”

Pathways to Financial Independence

Addressing the goal of financial independence by age 50, Gomez, CFP® emphasizes meticulous calculation and strategic use of tax-advantaged accounts. He explains the necessity of determining the exact savings amount required to reach this milestone.

Key recommendations include maximizing contributions to 401(k)s and utilizing Backdoor Roth IRAs for tax-free growth. To bridge the gap for early retirement, Gomez, CFP® suggests establishing a separate brokerage account. This account serves as a crucial tool for accessing funds before traditional retirement age without incurring early withdrawal penalties.

Optimizing Tax Strategies

The third pillar of Gomez, CFP®’s strategy focuses on tax efficiency. He points out that saving is only half the battle; keeping more of one’s earnings is the other critical component.

To achieve this, Gomez, CFP® advocates for the use of Health Savings Accounts (HSAs), highlighting their triple tax advantage (tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses). He also advises setting appropriate tax withholdings for RSUs to avoid surprises in April and implementing tax-loss harvesting in brokerage accounts during market downturns to offset capital gains.

“Saving is half the battle, keeping more in your pocket instead of the IRS’s is the other half.”

Gomez, CFP® concludes by reiterating that a well-defined plan, implemented proactively, is the most effective way for high earners to achieve their financial objectives, from major purchases to long-term independence.