Why Your Raise Isn't Making You Wealthier and What to Do About It
7/14/202636 min
Learn why a raise could quietly work against your long-term wealth if you don't have a plan.
Host Andrew Giancola and NerdWallet Wealth Partners CEO Ryan Sterling break down what to actually do the moment a raise hits, from the tax bracket shift to picking lifestyle upgrades that won't quietly eat the whole increase.
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NerdWallet Wealth Partners LLC (NWWP) is a SEC registered investment adviser. Registration does not imply a certain level of skill or training, nor does it constitute an endorsement by any securities regulator. The content presented by NWWP on its Your Next Dollar podcast is for informational and educational purposes only and is not intended as personalized investment, tax, or legal advice to any person. The views, strategies, examples, and figures discussed are intended to be general in nature, subject to change at any time based upon market or other conditions and may not be suitable for every individual. Any hypothetical illustrations used are for educational purposes only and do not represent a guarantee or prediction of future results. All investments carry risk, including the potential loss of principal, and past performance is not a guarantee of future results. NWWP's investment advisory services are only offered where NWWP and its representatives are registered. Before making any financial decision, seek advice from a qualified investment, tax, or legal professional.
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First 90 secondsAndrew Giancola· Host0:00
So you just got a raise. You got a better title, and you've got this great life. But why does it seem like your net worth is never increasing a year after you got a raise? And if that's you, you're not bad with money. You may be just someone who is classified as a HENRY, someone who is a high earner but not rich yet. And a raise on autopilot can actually set you back, because if you're increasing your lifestyle to the same level as the raise you just got, you may be making a major financial mistake. And so this quietly raises your financial baseline. Your fixed costs can creep up, and months later, the money is completely gone. So today, our goal is to help you fix that. We wanna talk about what to do when your raise hits and how to think about your raise ahead of time so it's not just hitting your checking account and leaving really quickly. We wanna figure out exactly a plan for that. We're gonna talk about the tax reality that a lot of high earners need to understand. And if you do get a raise and you move into a new tax bracket, how do you need to think about that, and how do you need to plan for that? Plus, how to pick a lifestyle upgrade that actually is going to benefit you long term. Then we're gonna dive even deeper. We're gonna talk about some of these things that nobody talks about, whether you deserve to actually enjoy this raise, and how do you weigh the pros and cons of that? We're gonna talk about how couples should handle raises, and we're gonna dive into why a mishandled raise could be one of the biggest mistakes you make overall.
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