Are You a HENRY?
HENRYs (high earners, not rich yet) are usually younger people who’ve come into a high-earning job but spend most of their income on expenses and haven’t built up enough assets to be considered rich.
But while some HENRYs may be younger (Millennials or Gen Z), I had a recent conversation with a bunch of other Gen Xer women like myself and we were all lamenting the current investment opportunity landscape.
The term HENRYs was coined in a 2003 Fortune Magazine article to refer to a segment of families earning between $250,000 and $500,000, but not having much left after taxes, schooling, housing, and family costs—not to mention saving for an affluent retirement.
And while reducing debt is, perhaps, the first step towards wealth, we all know that investing is the way to build it. After reducing debt, HENRYs have more disposable income to invest.
Developing better spending habits, increasing savings, diversifying investments, and taking advantage of tax credits and deductions can transform us all from the “not right yet” to the “wealthy.”
Now for the three things we’re reading…
- Breaking Free from the HENRYs Cycle in Family Lawyer Magazine: “… professionals should determine an appropriate financial plan to invest. While market volatility can be painful to experience, regular monthly contributions to retirement, brokerage, and (alternative investments – my insertion) accounts allow for investors to buy in at various price points over time. Even in a down market, monthly contributions are purchasing funds at a low-cost basis. When the market rebounds, the return on these specific lots will be amplified…”
- High Earners, Not Rich Yet (HENRYs): Are You One? by She Means Profit: “… What do high earners need to do to become truly wealthy? The answer lies in two key components: effective budgeting and strategic investments…. Strategic investments refer to diversifying your investment portfolio across asset classes such as stocks, bonds, real estate, cryptocurrency, (and alternative assets like angel investing, venture funds investing, art and antiques, hedge funds, or commodities – my insertion). Doing so reduces risk while still allowing for growth over time.”
- Three Answers to Common Questions About Alternative Investments by Forbes: “… Alternative assets can be one way to add diversification to your portfolio and help spread risk. There are a variety of different options to choose from, each with its own risks and rewards. Four popular types of alternative assets are: Real Estate, Private Equity, Hedge Funds, and Venture Capital… “
If a large portion of your portfolio is comprised of stocks, bonds, and mutual funds, you may want to consider alternative strategies to help unlock potential opportunities… Contact us or Download our One-Page Summary for ideas!
And, as always, please don’t hesitate to reach out – wendi@cassandracapital.co
