Dimensions / Getty Images

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

Congratulations! You’ve reached a significant milestone: a six-figure salary. But with this achievement comes the responsibility of managing your new income wisely.  

As you celebrate, you’ll want to start thinking about how to maximize your earning potential, both for your immediate needs and your long-term financial goals. By following a few smart money moves, you can make the most of what you’re making. Here are four smart strategies that can help you protect your new earnings and grow your wealth.

1. Maximize Your Retirement Contributions

Now that you’re earning $100K, it’s time to focus on boosting your retirement savings. If you haven’t already, see if you can max out your contributions to your employer’s 401(k) plan, or at least get as close as possible. For 2025, the contribution limit is $23,500 — this is a great chance to really ramp up your retirement fund.

But don’t stop there. Think about tax-diversifying your retirement savings. If your salary continues to rise, it might be a good idea to open a Roth IRA now, while you’re still eligible to contribute. This will allow your savings to grow tax-free, and when you retire, your withdrawals will also generally be tax-free provided you meet the eligibility standards for withdrawals. Incorporating a mix of tax-deferred and tax-free accounts into your strategy gives you more flexibility when it’s time to withdraw funds in retirement.

You can also supplement your retirement savings with annuities from New York Life, which give you the freedom to choose your risk level. Looking for lower risk and guaranteed future income? An income annuity could give you that peace of mind. Comfortable with market risk to potentially grow your money faster? There are variable annuities that could fit your needs.

If you’re not sure which retirement account is best for you, working with a New York Life financial professional can help you set up a plan that suits your needs and goals. 

2. Work with a Financial Service Professional

Once you’ve achieved your six-figure salary, you might find yourself in a maze of choices. There are so many decisions to be made about how you’ll apply your extra income to your savings plans and retirement accounts. Then there’s the matter of what to do with the kids’ college funds or your own investment portfolio.

A trustworthy financial services professional can guide you through these decisions, and finding one doesn’t have to be difficult. Through New York Life and its affiliate NYLIFE Securities LLC, you can tap into a network of more than 12,000 agents who are prepared to help you build strategies customized to your specific needs and desires.

These experts are highly knowledgeable about world-class financial products and services that can help you achieve your goals more easily, whether you’re looking to retire early or pay for your child’s education. By building a long-term relationship with a financial professional, you’ll also have someone on your team who can help you adjust your plans as life changes.

3. Explore New Ways of Investing

Up to this point, your sole foray into investing might have been participating in your employer’s 401(k) plan, which probably has limited investing options. Now that your paycheck is bigger, it’s time to broaden your investment strategy as well. You can invest in index funds, exchange-traded funds, individual stocks and more in a brokerage account or IRA. Seeking greater upside potential coincides with taking greater risk.

If you’ve always had an interest in real estate, now might be the perfect time to dive in. You could invest in a real estate investment trust, or REIT, which is a company that owns, and often operates, income-producing real estate. If you’re ready for a more hands-on approach, you could purchase commercial or residential properties yourself and manage them as a landlord.

4. Ensure Your Family’s Protection with Insurance

As you focus on putting your additional earnings toward building wealth, it’s just as important to think about protecting your family’s future. If your salary is any indication, you’re already providing in a big way — so you want to make sure they’re taken care of, even in the event of your death or disability. This is where life and disability insurance come into play.

With a strong insurance plan in place, you can ensure your loved ones will be financially secure, even if something unexpected happens and you’re no longer able to provide in the same way you do now. New York Life offers a range of insurance products designed to fit your needs, giving you peace of mind knowing they’ll be taken care of, no matter what life throws your way.

Share This Article: