Why High-Income Earners Don't Do What They Should

Hosts Maurice L. Wilson and Jon Bolston delve into why many high-income earners overlook critical financial strategies and provide practical advice on managing taxes, investments, and legacy planning.

They discuss Roth options within employer plans, after-tax contributions, and the backdoor Roth strategy as methods to create a tax-free retirement fund and mitigate substantial future tax liabilities.

The episode critiques target-date funds for often adopting overly conservative strategies prematurely, emphasizing the importance of customizing risk based on account balances and extended retirement timelines rather than adhering to a generic glide path.

Additionally, they explore how taxable brokerage margin accounts can enable borrowing against positions, such as RSUs, to access cash without selling or to strategically increase market exposure, while highlighting the associated leverage risks.

Finally, they underscore the significance of estate planning—establishing trusts and clear documentation to avoid probate, safeguard family interests, and ensure asset distribution aligns with your intentions.