W. Swartz & Co., LLC
Owner & Wealth Adviser
Wyatt takes a holistic approach in providing personalized financial advice for individuals, families, and business owners.
Since 2011, Wyatt has worked with his clients to achieve their financial goals. He has guided clients through major life and market shifts using comprehensive and personalized wealth planning. Wyatt began his career as a Financial Advisor with Renaissance Financial in St. Louis, Missouri. Here, he developed a comprehensive understanding of financial planning and the financial services industry. Wyatt then joined Fisher Investments in San Mateo, California as an Investment Counselor. At Fisher Investments, he had extensive training and experience in portfolio management, capital markets theory, and managed a roster of over 100 high net worth clients. In 2015, Wyatt started W. Swartz & Co., LLC Wealth Management, a fee-only Registered Investment Advisory (RIA) firm.
Wyatt has a passion for self-study and improvement. Growing up as an athlete combined with his background in history, he’s developed habits which ensure he is constantly refreshing and expanding his knowledge base. He believes in providing real expertise to his clients, as opposed to most in the industry which sell products. Wyatt believes that the modern investor deserves to work with an expert that is always acting as a fiduciary. Wealth management should not be a franchise.
Wyatt and his wife Andrea welcomed their daughter Eloise in February of 2019. They love the joys and challenges of being new parents, and spending time with their family & friends. They enjoy staying active and involved. Andrea is a health and fitness enthusiast and Wyatt is an avid water/snow skier, and golfer. Wyatt gives back as a committee board member for the World Pediatric Project, and as a volunteer football coach.
BS, Business Administration, University of Missouri – Columbia
BA, History, University of Missouri – Columbia
You and your wife pay a lot in taxes because you are high earners. This is a good problem to have, but it doesn't make the problem any more painful. There are a number of things you should be doing to lessen the burden of taxes while also investing and accumulating wealth.
- Maxing Out Employer Retirement Plans: If you and your wife have an employer retirement plan such as a 401k through work, you each need to be maxing your contributions out.
- Maxing out Health Savings Account (HSA)/Flexible Spending Account (FSA)
- Maxing out Non-deductible IRA contributions, and possible converting into a Roth IRA annually: If you and your wife do not have pre-tax (traditional) IRAs you could each make maximum non-deductible contributions to an IRA and convert the account into a Roth every year. If you do have pre-tax IRAs consider conversations and still open another separate IRA to make non-deductible IRA contribuitons.
You all should certainly be making sizable contributions to a joint brokerage account. This account doesn't have any tax benefits, but it does combine liquidity with an ability to invest in securities. The management of this account needs to be tax conscious.
If you all have children or are connected to children you would like to help with college then 529 Plan contributions could be another option.
In general I do not recommend permanent life insurance, or life insurance as an investment, but in your scenario buying policies that are tied to a stock market index and maximum funding them over 1-5 years is another option to explore.
A private family foundation and/or a donor advised fund are potentially perfect for you and your wife depending on how much your living costs are.
Lastly, buying real-estate perhaps in a separate LLC which you create could give you a way to accumulate a great deal of wealth in a tax efficient way.
The best advice I can give you is to consult with a combination of your team of experts and review all the options. You team should include a wealth/investment adviser, CPA, and estate planning attorney. If you do not have a team, then you should begin building it right away. You and your wife fall into a category where paying for expertise is a no-brainer. Your wealth is not a DIY project that can be managed on the cheap.
If your goal is to put the absolute most possible into tax-advantaged retirement accounts each year then a solo - 401(k) will be your best option. A SEP IRA will be your second best option and depending on a number of other circumstances should be considered.
Two more things to consider:
1. If you all do not have additional pre-tax/traditional IRAs you and your wife should make non-deductible maximum contributions to IRAs, and then convert them to Roth IRAs. Taking a few additional steps to max out Roth IRAs.
2. Also a unique idea you might consider woudl be making maximum contributions to your SEP IRA and converting it to a Roth each year. There by getting to contribute way more than the standard $5,500 per person Roth limits.
This is one of those situations where the phrase "six of one, half a dozen of the other" is applicable, because you would be making a good decision putting your bonus towards any of theses three options.
My recommendation is to put your bonuses towards your car loan. You should reduce your monthly savings by half and put that towards your car loan. Focus all efforts on paying it off fast and once it is gone repeat the process towards her loans. In no time you will have paid off your debt, and been budgeting and living a lifestyle that perfectly sets you up for massive accumulation of savings. Think about how much and how fast you will accumulate savings when you have no payments and all of your bonuses, and surplus cash flow are going to building wealth.
The key phrase your circumstances is "one to two years", because if you and your wife do not get antsy, you all could pay off your debt and have the savings you desire for you home purchase. Patience and focus is key.
Yes! Yes you should. If you can knock out all your credit card debt in one move you should do it. It is so incredibly important that once the debt is gone you reform your habits and budget, budget, budget, and start saving and living within your means or you will simply rack up credit card debt again and be back in the same position down the road. Based on the little bit of detail you provided you should probably cut up all your credit cards after you pay them off, and certainly you should stop using them completely. You should budget out how much you will save and spend monthly and make the savings automatic. Example: say you bring home $5,000 per month and you have determined that you have $1,200 in fixed living expenses and have budgetted out that you will spend another $1,000 a month in additional expenditures, and $3,000 in savings/investment. Have the $3,000 in savings/investment immediately/automatically electronically go to the appropriate accounts so that you are forced to stay within your planned budget.
One: Based on the information provided, I believe you are very well positioned for the future.
Two: Given the information provided I could not recommend an asset allocation for you. To determine the proper asset allocation (mix of stocks, bonds, & cash) for a client, I factor in goals, time horizon, and cash flows. What price range is the expected price range for your home purchase? It is also unclear based on the info provided how much longer you intend to continue working.
- When do you plan to stop working?
- How much are you currently saving and planning to save each year until retirement? What types of accounts are you doing this in, 401k, IRAs, taxable brokerage account, etc.?
- How is your 401k currently allocated?
- What price range will your home price be?
Hypothetical: If you were to start living off your accumulated assets today and require $100,000 (pre-tax) a year from your $2,000,000 nest egg, then somewhere in the range of a 60/40 – 75/25 mix of stocks/fixed income would give you the best probabilities of maintaining cash flows and growing the portfolio over the remainder of your life.
Lastly, based on the information you provided there may be financial planning opportunities to save/invest in more tax efficient ways. I assume that you are not eligible for direct Roth IRA contributions due to a “high income,” however you likely are eligible to make IRA contributions on a non-deductible basis and then convert that IRA into a Roth IRA. This strategy should be considered. You should also consider municipal bonds within taxable brokerage accounts.