Investing Strategies for High Achievers with Limited Time

At Cogent Strategic Wealth, a wealth management firm in Chicago and St. George, we understand your unique pressures and concerns as a successful entrepreneur or business professional earning seven—to eight-figure annual incomes. That’s why we focus on creating sophisticated investment strategies for high achievers who are busy creating wealth. Our role is to preserve and grow the wealth. 

Suppose you no longer have the time or inclination to manage your wealth. In that case, you need a comprehensive wealth management service that reduces your financial stress, helps you pursue your financial goals, and frees up time to explore your interests and spend more time with your family and friends.

This blog will describe various investment strategies providing these three important benefits.

Retirement Planning

As someone who has achieved personal and financial success, you need a retirement plan based on a deep understanding of your current circumstances and financial goals versus the cookie-cutter solutions produced by off-the-shelf software.

Why do we say that? Because we each have our unique characteristics, interests, and goals. That is why you should consider working with a retirement planning team that develops custom-tailored retirement plans based on where you are (financially) and where you want to go. 

Financially independent people often assume that a comfortable lifestyle now guarantees the same in retirement. However, that isn’t always the case due to inflation, market volatility, health, longevity, loss of income, and other non-controllables.

Financial stability requires more than just a well-thought-out plan. It demands an experienced partner who can provide guidance, support, and services throughout your financial journey. 

At Cogent, we value being a trusted confidant who is ready to assist with financial challenges as they occur. Using our Design | Build | Protect® Life on Your Terms approach, we help you build the solid financial foundation you need to achieve your financial goals.

Are you concerned about persistent market volatility? Watch our short video: Cogent Strategic Wealth: Your Solution to Uncertainty.

Tax Planning

As your wealth increases, so can the complexities of your tax situation. You need tax strategies implemented on your behalf to minimize your current and future tax liabilities, prudently grow assets, and preserve your capital for your future use. This could include designing tax-efficient portfolios based on asset location and diversification and employing Separately Managed Accounts that optimize your after-tax rates of return.

One example of a more sophisticated tax strategy is using Roth conversions, especially during early retirement years. This involves transferring funds from a traditional IRA or 401(k) into a Roth IRA. While you must pay income taxes on the converted amount at the time of the conversion, future withdrawals from the Roth IRA are tax-free, provided certain conditions in the tax code are met.

Once the funds are in a Roth IRA, any withdrawals made during retirement are completely tax-free, including the earnings on the investments in the IRA. This can significantly reduce your taxable income in retirement, especially if tax rates are higher.

Unlike traditional IRAs, Roth IRAs do not require you to take minimum distributions starting at age 73. This allows your assets to grow tax-free for a longer period and gives you greater control over your retirement income and tax planning.

Also, Roth IRAs can be passed on to heirs tax-free, providing a tax-efficient inheritance. Beneficiaries can continue to benefit from tax-free growth, although they must withdraw the funds within ten years under the current tax code.

Watch our short video: Three Ways to Make Paying Taxes Less Taxing.

The Power of Diversification

It’s not uncommon for high achievers like yourself to over-concentrate their investments in a single asset class, sector, or a company’s stock. This lack of diversification can expose them to significant risk if the concentrated investment suffers a setback.

We recommend using the power of diversification to reduce the impact of market volatility on particular holdings and enhance the potential for more consistent returns by spreading risk across multiple asset classes.

Your goal should be financial independence to live on your terms.

At Cogent Strategic Wealth, we specialize in Evidence-Driven Investing™, a disciplined investment process that uses empirical research and data-driven insights to guide investment decisions.

This strategy captures market rates of return through broad diversification and tax-efficient investment principles while minimizing expenses and risk. For highly successful individuals, Evidence-Driven Investing™ leverages scientific research to produce more consistent returns over longer periods.

Charitable Giving Strategies

As a generous person, you already know the joy of giving to charity. But did you realize that a charitable giving strategy can benefit you in more ways than just feeling good?

Donating to an IRS-approved charity or creating a donor-advised fund can reduce your tax burden by avoiding capital gain taxes and gaining a charitable deduction on your income tax return.

Simply put, your generosity not only aids others but also benefits you and your family. 

• Give more money – Use appreciated assets to increase the impact of your gifts on those you want to help.
• Pay less taxes – Reduce or eliminate capital gains taxes on highly appreciated assets.
• Live Better – Make giving a meaningful and lasting family tradition.

By donating an asset to a trust or fund that produces income, you can sustain your gift for years into the future, which can include future generations.

At Cogent, we help you think about ways to maximize your charitable giving and make a lasting impact on your family and community.

Watch our short video: How a Guide Will Help Your Financial Life.

The Importance of a Fiduciary Financial Advisor

Work with a fiduciary financial advisor who prioritizes your interests and understands your goals. Our founder, Michael Evans, often says, “Our clients define their success. We help them achieve it.” 

Through our guidance and Cogent’s Life on Your Terms strategy, we help you:

• Make smart money decisions
• Lower both income and estate taxes
• Protect your income and assets with the right insurance
• Safeguard your assets from unnecessary risks
• Care for your heirs while building your legacy
• If charitably inclined, enhance your gifts for a greater impact

We’re dedicated to your needs and have a legal obligation as fiduciaries to put your interests first. In addition, we are a fee-only wealth management firm, which means we are not paid commissions by third parties to sell their products. Our singular purpose is sound financial advice with your best interest at heart. 
Connect with us to learn more about our investment strategies for high achievers. A 30-minute conversation may be a game-changer for you and your family.

For informational and educational purposes only and should not be construed as specific investment, accounting, legal or tax advice. Cogent Strategic Wealth provides investment advice only through individualized interactions. Certain information is based upon third-party data, which may become outdated or otherwise superseded without notice. Third-party information is deemed to be reliable, but its accuracy and completeness cannot be guaranteed. Indices are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio nor do indices represent results of actual trading. Information from sources deemed reliable, but its accuracy cannot be guaranteed. Performance is historical and does not guarantee future results. Neither the Securities and Exchange Commission (SEC) nor any other federal or state agency have approved, determined the accuracy, or confirmed the adequacy of this article. © 2024, Cogent Strategic Wealth®