Today’s economy can feel overwhelming, with rising costs making it harder to make every dollar go further. We sat down with financial expert Jason Lund to discuss practical strategies for building and preserving wealth — no matter where you are on your financial journey.
Making Your Money Last
“The key to making money last is smart allocation,” says Lund. “Eliminate debt, avoid unnecessary credit, and pay yourself first—saving before anything else builds a strong foundation.”
Lund also stresses the importance of controlling lifestyle inflation. As income rises, resist the urge to increase spending at the same pace. Instead, prioritize savings and investments for long-term financial stability.
Steps to Start Building Wealth
“Start now,” Lund advises. “Assess risks versus rewards, choose wisely, and stay disciplined. The journey to financial security begins with intentional choices.”
Developing a budget and sticking to it is essential. Tracking income, expenses, and savings goals builds financial discipline. Lund recommends automating savings contributions to ensure consistent progress.
Election Cycles & Economic Impact
Many believe the economy slows during election years. Lund shares, “Elections influence certain sectors, but overall, staying diversified and informed is key. Don't react to fear-driven narratives -- instead look for opportunities.”
Market fluctuations are common during election cycles, but history shows that long-term investing yields better results than short-term reactive decisions. Lund urges individuals to focus on their personal investment timeline rather than making impulse moves based on political uncertainty.
Tailored Financial Advice
Lund offers specific advice for different financial situations:
- Young Professionals: “Understand the risks of taxation and inflation. Diversify, stay patient, and avoid ‘get-rich-quick’ schemes.”
- Families with Employer-Provided Plans: “For most, a Roth 401(k) is a strong option, but a personalized assessment is essential for maximizing benefits.”
- High-Net-Worth Individuals: “Wealth protection requires strategic planning. Consider income replacement, risk tolerance, and long-term goals as part of a comprehensive approach.”
When to Start Tax Planning
"Immediately." says Lund. “Every untaxed dollar holds future value. Tax planning becomes especially important at the 22% tax bracket, where smart strategies can yield significant benefits.”
Tax planning includes maximizing deductions, contributing to tax-advantaged accounts, and understanding capital gains tax implications. Lund recommends reviewing tax strategies annually to adapt to any changes in tax laws that might impact wealth preservation.
Investment Options: Understanding the Differences
Investment suitability depends on income, tax bracket, employment status, and goals. Lund outlines common options:
- 401(k) & Roth 401(k): Employer-sponsored plans with tax advantages.
- SEP IRA: Ideal for self-employed individuals.
- HSA (Health Savings Account): Offers tax benefits for medical expenses.
- Non-Qualified Investments: More flexibility but lack tax advantages.
“The biggest mistake,” Lund warns, “is not realizing that time is both your greatest asset and your biggest enemy. The earlier you start, the better.”
Diversification is another key aspect of smart investing. Lund advises against putting all assets into one category, emphasizing the importance of spreading investments across various asset classes, such as stocks, bonds, real estate, and mutual funds.
Finding the Right Financial Advisor
“A fiduciary advisor—who charges a fee for service and prioritizes your best interests—is usually the best choice,” Lund says. “Look for transparency, strong communication skills, references, and experience. And remember, a successful advisor-client relationship thrives on active engagement from both sides.”
Working with a financial advisor who understands your unique needs and long-term goals can play a crucial role in building and preserving wealth. Regular check-ins and adjustments to your financial plan help ensure success.
With these expert insights, Lund encourages individuals to take charge of their financial futures, emphasizing that strategic planning and informed choices can pave the way for long-term success.
“Start now. Assess risks versus rewards, choose wisely, and remain diligent. The journey to financial security begins with intentional first steps.” — Jason Lund