I’m a Banking Expert: 6 Must-Do Moves for Anyone Making $100K or More
Written by
Jordan Rosenfeld
Edited by
Gabrielle Olya
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The new year is always a good time to stop and reevaluate your finances. This year also brings with it a new presidential administration, which can potentially bring economic change, as well, so there’s no time like the present to get your finances in order.
While no one should ever make rash financial moves, there are some moves that can position you for greater financial stability in the coming year, particularly if you’re earning a salary of $100,000 or more.
Christopher Stroup, CFP and owner of Silicon Beach Financial, offered some key money moves to consider in 2025.
Assess Your Purchasing Power
First of all, remember that the purchasing power of a $100,000 salary can vary greatly depending on the region you live in due to variations in the cost of living. Stroup pointed out that in high-cost areas like New York City or San Francisco, housing, transportation and daily expenses often consume a larger portion of your income.
“This results in a reduction in discretionary spending for those in urban areas. On the other hand, in lower-cost regions, the same income may offer a higher standard of living with more room for savings and investments.”
If your $100,000+ salary feels like it isn’t cutting it, you might look into relocating.
Savings Moves
Stroup stressed the importance of building an emergency fund with six to 12 months’ worth of expenses.
“For high earners, this fund should be easily accessible, which makes a high-yield savings account or money market fund an ideal place to park this cash.”
Once you’ve built up that emergency fund, he recommended allocating funds into tax-advantaged accounts, such as a 401(k) or HSA, which can help you build wealth for the future.
Investing Moves
If you’re stymied on which investment to prioritize in the coming year, Stroup recommended focusing on maxing out your retirement accounts while also leveraging brokerage accounts for stable investments.
But if you have the bandwidth, he pointed out that “Diversification across multiple asset classes, including stocks, bonds and real estate, is critical in order to help you balance risk.” You’ll want to regularly rebalance your portfolio to ensure that it aligns with your financial goals.
Tax Considerations
High earners should look to optimize their tax liability by leveraging tax-deferred retirement accounts, health savings accounts (HSAs) and tax-efficient investment vehicles, Stroup encouraged.
“Hiring a tax professional is often worthwhile for navigating deductions, credits and tax strategies like tax-loss harvesting. Understanding your current tax brackets and planning for quarterly estimated payments (for those who are self-employed) is crucial to help mitigate any tax surprises.”
Consider Your Goals
Consider setting both short- and long-term goals with a focus on major milestones like homeownership, retirement or education funding, Stroup said.
“High earners should engage in strategic planning to align their incomes with their goals while ensuring sufficient liquidity and long-term growth. It’s important to regularly review and adjust your goals as your life ebbs and flows.”
Consider Estate Planning
Lastly, don’t forget about estate planning, including setting up wills and trusts. “Additionally, protecting your wealth with insurance (life, disability and long-term care) can help shield against unforeseen risks,” he said.
Finally, consider charitable giving strategies (like a donor-advised fund) to secure these tax benefits while aligning your philanthropic goals with your personal values.
At the very least, be sure you touch base with your financial planner or accountant several times throughout the year.
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