Are Your ‘Smart Money Moves’ Costing You More Than You Think?
The higher your income, the easier it is to overlook financial leaks disguised as “good decisions.”
This week, we’re auditing essential coverage, exposing hidden investing costs (even on no-load funds), and answering a smart question about one of the most underused retirement tools.
The Wealth Minute
Is Your Insurance Actually Protecting Your Wealth — or Just Draining It?
Most high earners haven’t reviewed their insurance in years — and it shows.
Either you’re overpaying for coverage you don’t need, or underinsured in places that could wipe out your financial progress.
Break your audit into two categories this week:
Subsection 1: Property & Casualty Audit
What to Review:
Auto Insurance: Coverage limits, deductibles, unnecessary add-ons.
Homeowners or Renters Insurance: Replacement cost vs. actual cash value.
Umbrella Liability Policy: Should match your net worth, minimum $1M+ for high earners. It's cheaper than you think when bundled with home & auto.
Better Moves:
Bundle policies for multi-line discounts.
Cancel overlapping coverages (like rental car insurance and mortgage protection insurance).
Why It Matters:
Overpaying for coverage you’ll never use is money lost. It’s easy to sign up for these add-ons without realizing you’re already protected elsewhere — and those small premiums quietly drain cash flow over time.
Being underinsured exposes you to costly liabilities.
Both are silent wealth killers.
Subsection 2: Life, Health & Income Protection
What to Review:
Term Life Insurance: No less than 10–15x your income if someone else is dependent on your income, even into retirement.
Cash Value Life (Whole, Universal, Indexed Universal.): If you’re unintentionally carrying these, review an in-force illustration to see cash value, fees, and surrender options.
Disability Income Insurance: Aim for 60–70% of income, tax-free. Note that disability insurance comes in both short term and long term coverage.
Long-Term Care: Beware of this one. The industry is failing and is taking the cashflow of millions with it. Reach out for other options if you are considering this one.
Better Moves:
I recommend term for individuals who still carry a good bit of debt or are not ready to invest in the tax free benefits of cash value life insurance.
The tax free benefits of cash value life insurance make it a great option if you want to increase your tax-free access for business opportunities, emergencies, or supplemental retirement income.
Get an independent insurance audit every 3–5 years.
Why It Matters:
As your wealth grows, your financial risks — and opportunities for overpaying — grow also.
Smart coverage protects you without unnecessarily draining cash flow.
Bottom Line:
Protection is smart. Overpaying isn’t.
Build a coverage strategy that actually fits your income and risk profile — and stop wasting money on policies you’ve outgrown.
Wealth Move
Property & Casualty Audit: List each policy’s premium, deductible, and coverage limits.
Request quotes from at least 2 other carriers if your policies are over 2 years old.
Increase deductibles if you can cover them comfortably from emergency savings.
Life, Health & Income Protection Audit: List each policy’s premium, deductible, and coverage limits.
Audit coverage amounts, types and beneficiaries.
Verify if your employer's disability coverage is enough or if supplemental private coverage is needed.
The Freedom Path
The Hidden Costs of ‘No-Load’ Mutual Funds
You’ve probably been told no-load mutual funds are a smart, low-cost way to invest.
And it’s true — they skip upfront sales commissions. But no-load doesn’t mean no cost.
These funds can quietly drain your returns through other fees and limitations most people never notice.
What They Don’t Tell You:
High Expense Ratios: Many no-load funds charge 0.75%–1.5% annually just to manage the fund, and that fee comes out of your returns whether the fund performs or not.
Account Maintenance Fees: Some brokerage platforms tack on small annual fees for holding mutual funds — especially if your account falls below a certain balance.
Limited Tax Efficiency: No-load mutual funds often trigger capital gains distributions you’ll owe taxes on, even if you didn’t sell anything yourself.
Early Redemption Fees: Sell too soon and you might pay a penalty, even in no-load funds.
Better Moves:
Use tax-advantaged or tax free accounts (401(k), IRA, HSA) for actively managed or higher-cost funds to shelter distributions.
Consolidate old brokerage accounts to avoid extra maintenance fees.
Why It Matters:
Small, hidden fees and taxes chip away at your wealth in ways most high earners don’t track — and over a decade or two, it can mean six figures lost.
Bottom Line:
No-load doesn’t mean no cost. Always audit the fine print on where your money’s parked and what it’s really costing you to keep it there.
Wealth Move
Review your investment statements for expense ratios over 0.50% — anything higher is worth questioning.
Check for account maintenance or transaction fees associated with mutual fund trades.
Look at your last year’s tax return or brokerage statement to see if you paid capital gains taxes from a fund you didn’t personally sell.
Book of The Month
This month's book is Killing Sacred Cows 2.0 by Garrett Gunderson
If last month's book didn't knock your socks off, go back and read!
When you're ready for more mind blowing paradigm shifts about building wealth, check out this month's book.
I guarantee you'll have to rethink at least one of your personal finance beliefs.
Coffee Chat Question
If we were to meet for coffee, what would you want to know?
Feel free to email me questions that will anonymously be added to this section during each edition.
Lisa, should I max out my HSA even if I don’t have medical expenses?
Absolutely!
An HSA (Health Savings Account) isn’t just for covering co-pays — it’s one of the most tax-efficient investment vehicles available to high earners.
You get a triple tax advantage: contributions are
Tax-deductible
Growth is tax-free
Withdrawals for qualified expenses are tax-free
You can invest your HSA funds and let them grow for future healthcare costs in retirement.
Better Moves:
Use your HSA as a stealth retirement account — pay small medical expenses out-of-pocket now and let the HSA grow.
Track your out-of-pocket medical expenses and reimburse yourself years later tax-free.
Invest your HSA in low-cost, broad-market funds for long-term growth.
Why It Matters:
Medical expenses are one of the biggest retirement risks for high earners, and the HSA is one of the only tools that lets you legally avoid taxes at every stage.
It’s an essential part of a tax-smart retirement plan.
Bottom Line:
An HSA isn’t just a savings account — it’s a tax shelter in disguise.
Max it out now, invest it, and let future you thank you later.
Are You A Federal Employee?
"Uncertainty" was a word never associated with federal employment in the past.
It's a daily utterance these days, however.
To help you make informed financial decisions that are best for you and your family, I'm offering all federal employees a FREE Money Chat.
Click here to schedule a 30 minute chat to discuss anything you want.
Let's change the word of the day to "Empowered."
