6 Things You Must Do With Your Money When You Reach the Upper Class
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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Reaching the upper class isn’t just about making more money — it’s about managing it wisely to sustain and grow your wealth. Once you’ve crossed into a higher financial tier, your money decisions become even more critical, from protecting assets to optimizing investments and minimizing tax burdens.
Whether you’ve built your fortune through career success, smart investing or entrepreneurship, knowing what to do next can mean the difference between lasting wealth and financial missteps. Here are the key money moves you must make once you reach the upper class.
Work With a Tax Professional in the Short Term
The most immediate move to make if your income jumps you into the upper class is to consider getting tax professional’s help, whether that be a CPA or tax strategist, according to Chad Gammon, a CFP and the owner of Custom Fit Financial.
“They can then help on the second step looking at your retirement accounts. Are you maximizing your contributions such as your 401(k), 403(b) or 457 plans? If you have a health savings account (HSA), are you contributing to the maximum as well? These are a few accounts to consider. Another option to consider is investing outside of these retirement accounts in a brokerage account for greater investment flexibility,” he said.
Focus On Estate Planning
The more assets you hold, the more you need to think about what to do with them after you die. Christine Mueller Coley, a CFP and wealth advisor with SteelPeak Wealth Management, recommended making sure you have proper estate planning documents in order.
“Most people need a will, durable power of attorney for healthcare and an advanced medical directive. You may or may not also need a trust for your assets,” she explained.
If you do have a trust, make sure all the appropriate assets, typically nonretirement accounts, are titled in the name of the trust, she urged. Additionally, review all your financial accounts to determine you have the proper beneficiaries listed with updated contact information.
Evaluate and Pay Down High-Risk Debt
Debt at any income level is a problem, even more so when you’re making less money. If you’ve crossed over into the upper class, now is a great time to use your higher income to pay off any high-risk debts, Coley suggested.
She recommended starting with credit cards and high interest loans, then looking at things like student loans, auto loans, mortgages and lines of credit.
“Some debt can be good debt, like a low interest rate on a mortgage, and some debt needs to be taken care of right away.”
Review Your Current Investments
It’s also a good time to review your current investments to make sure you have a well-diversified portfolio, Coley said. This can comprise growth stocks, dividend-paying stocks, corporate and government bonds, and alternative investments, such as real estate, private credit or private equity.
What’s most important is to craft the portfolio to ensure that the investments are placed in the right account to improve tax efficiency, Coley recommended.
“Avoid high income paying investments in a taxable account if you are in a high tax bracket. Balance the risk levels in a Roth IRA — tax free growth with qualified withdrawals — against other investments in taxable or tax-deferred accounts,” she said.
Review Your Budget
It’s not uncommon for increases in income and wealth to drive disproportionately sized changes to lifestyle and budget, Coley said, so be sure to review your budget.
“For example, a large increase in income may mean increased spending but not increased saving. It’s important to have a plan in place that tracks your current spending and lifestyle so you can see how important it is to increase your savings to accommodate those changes,” she said.
Connect With a Financial Advisor for the Long Term
For long-term moves, Gammon recommended working with a financial advisor to help plan for things like early retirement or financial independence.
“This would include ways that you can draw from investment accounts for a tax-efficient withdrawal strategy. It is also good to look at education and personal growth. This can help you keep your income stream by continuing to learn or build your networks.”
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