By Mike Gibbons, RICP®
Families who have attained success in the pharmaceutical industry face a dilemma—even though it might be considered a “good problem to have.” It’s finding a balance between enjoying their affluence today and setting sights on a comfortable retirement. Many seek wealth tips for maintaining that symmetry.
How can your family enjoy the fruits of your hard work while setting up a prosperous future? Let’s take a look at some effective wealth tips and strategies.
Luxury and Longevity Defined
The concept of luxury manifests in many forms. Opulent homes, international travel, exclusive clubs, and high-value possessions are just a few of the trappings pharma families earn through hard work.
But enjoying luxury in the present needs a counterbalance: a long-term financial strategy. It’s more than having enough for today. It involves making your wealth sustainable for the future. As retirement draws near, having that plan in place is essential.
One of the key wealth tips for affluent pharma families is to establish that structure. This is particularly crucial when families must steer through difficult times and economic uncertainty that can arise at any moment.
Challenges for Wealthy Pharmaceutical Families
Pharmaceutical employees face unique challenges that dictate special consideration. A great number of our clients earn high and stable incomes that give them special opportunities for building wealth. On top of regular salaries, those opportunities might include stock options and lucrative compensation packages.
The challenge lies in managing this wealth. A mindful strategy that includes tax management, legacy planning, retirement, and wealth transfer is a powerful tool. It can help to keep you and your family from the pitfalls of overconsumption by maintaining sustainable wealth.
Aligning your assets and earnings with future, long-term goals is one of the most effective wealth tips to follow.
Wealth Tips for Striking a Balance
While you have every right to enjoy indulgences from time to time, it’s important to keep those luxuries in line with plans for retirement and beyond. Here are some meaningful wealth tips.
Set Clear Goals
Put your financial priorities above all else. Make thoughtfully considered and attainable goals that correspond to your family’s long-term needs. These can include funding education, estate and legacy plans, and building retirement capital.
Make Appreciating Investments
Assets like real estate, fine art, and value stocks tend to gain in value over the long haul. This sets them apart from temporary extravagances. Appreciable assets can provide consistent, passive revenue while building for the future.
Review Your Portfolio Often
No matter how much you earn, keeping tabs on your investments is vital. As you move toward the future, review your portfolio and make adjustments from time to time. Strive to diversify your holdings to mitigate risk. Your needs should change as you go through life stages, so adapt your portfolio accordingly.
Actionable Steps to Take Now
As you get closer to retirement, you can take a few actions that can preserve your financial balance while enjoying the present.
Max Out Retirement Fund Contributions
Contribute to your 401(k), pension plans, and brokerage accounts to their maximum annual limits (if applicable). This is particularly important if your employer matches your contributions.
Set a Luxury Spending Plan
While you may have more financial freedom than others, it’s still important to keep an eye on how much you spend on luxury items. Earmark a percentage of your annual income for those as you continue saving and investing.
Develop an Estate Plan
Include wills, trusts, and wealth transfer strategies in a well-rounded estate plan. Start building your legacy in the present by allocating your wealth to your beneficiaries’ futures.
Effective Wealth Management for Pharma Professionals
Gibbons Financial Group focuses on the unique needs of those in the pharmaceutical industry. Employees and families who contact us receive solid financial services for enjoying today and building toward the future.
Are you interested in partnering with us for personalized guidance that goes beyond these wealth tips? Call 224-419-5550 or email me at Mike@gibbonsfinancialgroup.com to schedule a complimentary consultation. And be sure to join our free webinar, Retiring Early From Pharma.
About Mike
Michael J. Gibbons is founder and president of Gibbons Financial Group, an independent advisory firm providing custom-tailored financial planning and investment management services to pharmaceutical and healthcare professionals and their families. Mike has over 25 years of experience and spends a significant portion of his day working with pre-retirees and retirees, focusing on asset management, Social Security and pension planning, as well as retirement income preparation.
Mike has degrees in both business and psychology from Lake Forest College and currently holds his Retirement Income Certified Professional (RICP®) designation from the American College. Mike was named a Five Star Wealth Manager for 2016 and 2018* Mike is heavily involved in his community, having served on the Village of Gurnee Police Pension Board as a Community Volunteer and the St. Patrick’s Parish Financial Board. When he’s not working or volunteering, Mike loves playing golf and spending his time with his wife and children. To learn more about Mike and how he can help you, connect with him on LinkedIn, visit his website, and register for his free webinar, Retiring Early From Pharma, created specifically for professionals retiring from the pharmaceutical, biotechnology, and healthcare industries.
*Award based on 10 objective criteria associated with providing quality services to clients such as credentials, experience, and assets under management among other factors. Wealth managers do not pay a fee to be considered or placed on the final list of 2016/2018 Five Star Wealth Managers.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.