What's the best thing to do with excess wealth at age 30?

I have excess funds and am unsure what to do with them I'm 30 years old with a stable job and single. I've already contributed to reach my company match on my 401(k) and maxed out my Roth IRA contributions. I have already set aside 1 year of emergency funds. Now I still have excess savings, and I'm unsure of what to do with the money. First world problem (I know), but what do you recommend to help grow my wealth?

Retirement Savings, Investing
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March 2018

It's a wonderful problem to have, isn't it? 

A few general ideas come to mind but you really need the services of a personal financial planner and advsior to help you and work closely with your tax pro (having to have a financial advisor is a first world problem, too, but you have it).

You might ask your employer if they would defer some of your compensation. This would at least put off the tax burden on these funds for several years. 

I'm generally not sanguine about using annuities, as they tend to be expensive and tipped to benefit the insurance company far more than the client, but there are some new fee-only annuities you might consider using for tax deferrment strategies. Annuities have no tax benefit to contribute, but the funds will grow tax-deferred. You are in a unique situation where using an annuity to shelter investment growth from taxes may make sense.

Also, you're going to need an advisor who works closely with your tax professional to manage your investments in tax-sensitive ways. Buying and holding individual stocks instead of funds, using municipal bonds instead of corporate or federal bonds, harvesting tax losses regularly, etc.

Feel free to reach out to a few of us if you want more personalized advice. We're kind of limited in what we can advise you to do on a public forum.

All my best!

March 2018
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