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Walk-Away Wealth Wilson in “Why Ignorance Is Not Bliss (Especially With Your Money)”

Walk-Away Wealth Wilson is overwhelmed during his annual benefits open enrollment period. Does this scene seem all too familiar?

In my experience as a financial advisor, I see people leaving a lot of money on the table–especially during the annual open enrollment period for your benefits.

Just recently I was helping my oldest daughter work through the myriad of confusing language for the new job she just landed.

There was no way I was going to let her leave any money on the table.  After all, I’m trying to get her off the payroll–LOL!

But just like we talked about in installment #1, cash can be a casualty if “you don’t know what you don’t know.”

You’re saying, “Okay, but I’m not doing that.”

Well, let’s see…

When you don’t contribute the max to your 401(k) plan because your employer’s match stops at “$X” (I’ve heard this a lot), you’re missing out on a chance to lower your tax bill.

In other words: You can take some of the money you’re about to give to Uncle Sam and give it to your future self instead.

The important thing that people overlook is that every dollar you contribute on a pre-tax basis goes to reduce your taxable income dollar-for-dollar. This is true regardless of how much is matched by your employer. So, if you’re in the 22% tax bracket, it’s like putting a $1.22 in your 401(k) for every $1 you contribute.

The same could apply for other overlooked benefits like gym or tuition reimbursement, deferred compensation, employee stock purchase plans, company-sponsored life insurance–some of which I discuss in this video…

 

When is the last time you went through your benefits package with a fine-toothed comb to scoop up some extra dollars without getting a raise?

It’s imperative that your financial plan includes a strategic check of your employer’s benefits to help you create walk-away wealth.

There are several strategies similar to this that we can uncover in a Benefits X-Ray. Almost invariably, I find that plucking this type of low-hanging fruit makes a big difference—the difference that brings you to financial independence sooner.

 

Something in this story strike a nerve?  Let’s chat.

Use the scheduler below to find a convenient time for us to talk.  I look forward to meeting you!


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