Do you make a "dangerous" amount of money?

Ok... I realize that title is a "clickbait" type of title but I promise I did not make it up!

Making a "dangerous" amount of money is a real thing.

If your income in 2023 was in the $150,000-$750,000 range you want to keep reading...

What I am going to describe is one of those financial concepts that typically brings on a lightbulb 💡 moment. We find most of our clients nodding in agreement the moment they learn about it.

During an introductory Right Fit Call with a prospective client, I always ask about the following:

• Do you know your cash flow habits?
• Do you save a set amount of money each month?
• Or do you have a process more akin to just adding whatever is left over at the end of the month into savings/investments?
• How does that month-to-month breakdown usually play out?

In terms of the answers I get, they are all over the map as far as "how" money is being saved. But what I hear the most is this...

"I could be saving more...I know I'm leaving money on the table."

I get it. The truth is a lot of our clients are making a "dangerous" amount of money.

How? It goes like this...

If you're making $75k-$80k you probably have to have a pretty good handle on how much you're spending, how much you're saving and what is left over each month...because you have to.

There's not so much "extra" and so it requires you to be extra diligent about how you are spending your money (even more so if you're committed to a savings goal).

On the flip side if you're making $2 million a year, you really don't need to have an automatic savings plan...and, quite frankly, you're still going to be just fine...as long as you're not totally off your rocker..! 🙃

If you're making that much money, you will end up saving enough each year for your future...almost just by accident!

But if you're making $150,000-$750,00 you're in this sort of "in between" position.

You're making enough to be totally comfortable spending as much as you'd like with no real financial worries day-to-day and you are probably still able to grow your net worth...

BUT you're not so well positioned that you can just call it a day and glide your way into retirement.

⚠️ And that is why so many of our HENRY clients fit into this "dangerous" income range...

They're making enough to be comfortable but not enough (yet!!) to be financially independent. They still have to put in the work, in other words create a plan, if they are going to maximize their money and reach their long term financial goals.

Do you relate to this situation? I encourage you to schedule time on my calendar here for a 15 minute Right Fit Call.

The views expressed are the views of Drucker Wealth Management, and are not necessarily those of Hornor, Townsend and Kent, LLC(HTK). The information provided is for educational purposes only and is not intended as investment advice or a solicitation for the purchase or sale of any product or security. Investing involves risk, including the potential loss of the money you invest. Insurance and other financial products and services may be subject to certain terms, eligibility requirements, conditions and costs. Lance Drucker is a Registered Representative and Registered Investment Adviser of Hornor, Townsend & Kent LLC, (HTK), Registered Investment Advisor, Member FINRA (www.finra.org) / SIPC (www.sipc.org). 2 Park Ave, Ste 300, New York, NY 10016. 212.681.0459. Drucker Wealth Management and other listed entities are not affiliated with HTK. HTK does not offer tax or legal advice. Always consult a qualified professional for specific information regarding your personal situation.

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