As you mature into your prime earning years, investment performance begins to take precedence over basic education and simply setting up accounts. After establishing yourself as a young professional, more money is now on the line through career advancement and business contacts. Improving levels of free cash flow alongside additional obligations does expand financial planning options. At this point, however, selecting from the nearly infinite amounts of financial products now available can be a daunting task. To begin, Onyx Investments will help you to navigate the financial planning process by brainstorming and taking inventory of major goals alongside current assets and liabilities. Next, Onyx Investments will work to categorize and recommend suitable investments according to risk versus reward. Time is especially of the essence, after the age of 35 and into middle age.
Onyx Investments is cognizant of the idea that financial goals will shift throughout your lifetime. Over time, you are likely to upgrade your lifestyle into a larger residence – to meet the needs of your growing family. Newfound responsibilities may then include plans to finance estate, retirement, and education costs. All goals should be prioritized, while also including a timeline and total cost amount. Concerned parents must account for the fact that loans are available for tuition, but banks do not extend any retirement credit. With a list of financial goals in hand, Onyx Investments can toggle through multiple savings, return, and inflation projections, before issuing a set of recommendations. These recommendations may include reforms to your current budget and personal balance sheet.
An honest assessment of your personal finances is necessary to determine whether your financial goals are realistic. The initial data gathering review includes tallies of your current assets, liabilities, insurance policies, income, and expenses. Onyx Investments will suggest that you significantly downsize your current lifestyle, or put in additional time at work, if aforementioned financial goals are not realistic and attainable. Discretionary spending on luxury items, such as designer clothing and resort travel, can always be minimized, if not eliminated altogether. From there, Onyx Investments may suggest adding to your cash reserves and purchasing insurance products that preserve liquidity amid various scenarios. Further, recommendations to sell off underperforming investments may be brought forth, before evaluating allocations for important retirement accounts.
Retirement accounts are notable for built-in tax deferral. As such, you will not owe taxes on interest, dividend income, and capital gains, as they occur within your retirement account. As a middle-income saver, you are likely to already be familiar with the structure of 401(k), Traditional IRA, and Roth IRA retirement accounts. Roth IRA contributions are made with after-tax money, which does allow for tax-free withdrawals. The Roth IRA would be more so ideal, if you expect to retire at a higher tax bracket. Alternatively, 401(k) and Traditional IRA plans both allow for tax-deductible contributions – with withdrawals being taxed at ordinary income rates upon retirement. As part of your employee benefits package, your employer will match your 401(k) contributions on a dollar-for-dollar basis, up until a certain point. If you choose to leave your employer, Onyx Investments stands ready to help you evaluate the possibilities of a 401(k) to Traditional IRA plan rollover transaction.
Onyx Investments promotes diversification as a critical strategy for you to manage financial risks, while also facilitating growth. As you age, the mix of your diversified portfolio should become more conservative. For example, you may own aggressive growth mutual funds as a young professional. Over time, Onyx Investments may suggest that you add bonds and money market securities to your portfolio that reduce overall exposure to risk. Stocks are ideal for long-term growth, while bond and money market securities generate stable interest income in most economic conditions.