Drucker Wealth

As we begin the year, I want to share some thoughts that came to mind as I reflected on 2023 - I'm not holding back!​​​​​​​​​​​​​​​​​​Let's start with the belief that many people think they can't "afford" a comprehensive financial plan. Frankly, I've found that 99% of you can "afford" to invest in our initial financial life plan program right now.

It all boils down to priorities.

You might spend more on your next vacation or even a home renovation but somehow, you draw the line at reorienting your ENTIRE financial world – a decision that can change your life & pay you back for the next 30+ years.

The truth is, if you don't assign real importance to your financial health, the cost will always seem slightly out of reach. But if you do, you'll realize that NOTHING should stand in your way. 💪

Now, let's dive into the core of my mission with this page.

My goal is to help you realize financial planning is about so much more than just investment advice. In fact, it's NOT worth paying for investment advice alone. If you have an "advisor" who only manages your investments, chances are you're overpaying them.

Financial planning encompasses: tax optimization/cash flow management/estate planning/life & family planning/retirement/employee benefits/education funding/housing analysis/insurance. If your advisor does all of that, you're probably underpaying them relative to the value they provide.

Remember, money decisions aren't always rational. Your perspective on spending can be very different from an outside, objective observer. But when it comes to planning your ONE life, wouldn't you want someone who looks at things objectively and considers the whole picture?

Getting financially organized & having a well-defined path to your financial plan is worth it's weight in gold.

Ready to get organized in 2024??

Do you find yourself stuck in the paradoxical state of feeling financially uncertain despite earning a substantial income? 🤔 ​​​​​​​​​​​​​​​​​​You might be grappling with Money Dysmorphia, a common phenomenon where the perception of our financial reality doesn't align with the facts.

I was recently interviewed by for an article on this topic!

Having worked with hundreds of mid-career professionals who make a great income, I see the effects of Money Dysmorphia every day.

By any objective measure, the people I am building Financial Life Plans® with are rich (as defined by having a top 10% income in the country & top 1% in many cases), but they don't have that feeling.

I get it; it can be tough to balance it all, especially for those in the 'dangerous money' zone - earning between $250k to $750k annually, depending on your location. You're not struggling to make ends meet, but there's that nagging feeling that you should have more built up already.

Here are a few tips we covered in the article to help you break free from this money mindset:
🔍 See Clearly: Take an honest look at your finances. Know what you need, what you want & what's truly essential for your happiness.
📈 Set Goals: Financial goal setting is not just important for your long-term future; it is equally important for mid-career professionals to set goals for the short-term and gage their progress over time.
⚖️ Balance Present & Future: Don't postpone happiness until retirement. Strike a balance between living your best life today & planning for financial security.

So, if you're making 'dangerous amounts of money' remember - it's not about the numbers alone, but the peace of mind that comes with understanding & managing your financial world comprehensively.

As we head into 2024 embrace clarity, set goals, & find your balance.

📈👨‍💼 Teaching my nephew, Bodhi, why 10% investment returns NEVER feel like 10%...

You hear me talking all the time about how the stock market averages ~10% return per year (using the S&P 500 index as short hand for the market).

That fact of history is wonderful - but it’s also largely irrelevant to your long-term financial success if you don’t understand the second part of that fun stat:

💰The stock market almost never ACTUALLY returns 10% in any given year.

​In fact, since 1957 the stock market has only ever been in that cozy “8-12% range" 5 times - that’s it! Only 5 times over the last 66 years!

This is a problem for most people to wrap their heads around because when you hear that your money, over time, will earn something "close to 10% per year" you’re expecting most years to fall within that range. But, despite that being logical & intuitive, it doesn’t actually work that way!

Instead returns often work with far greater variance year to year (+22%, +14%, -16%, +7%, -21%, +19%, +13%, etc.).

Here’s the important piece that we need to remember:

You only have the potential to earn those annual 10% returns if you “hang in” the market long enough for the law of averages & the historical track record to work in your favor.

We need to stack up years one on top of another for a long time before we can be remotely comfortable relying on these “average” return assumptions.

This is why investing is a marathon not a sprint.

When markets are at all-time highs, we need reminders that a bear market will return again so we don't panic when it does.

When the market is melting down, we need reminders that the world is not ending and that there are broad positive trends destined to drive future returns.

In essence, part of bringing your expectations into alignment with reality is never letting your highs get too high or your lows get too low.

The stock market's wild ride is worth it for those who stay patient and hold on tight. Volatility is key to long-term returns!

My sister gabby and I started training with Joe when we were freshman in high school. We needed to get physically stronger to compete at the levels we wanted to on the tennis court and our tennis coach said Joe and his gym “Varsity House” was the guy. At the time, he had a small space which he shared with another group. We started flipping tires, pushing the prowler, coordination drills etc. We were hooked (and so was my dad watching from the side.)

16 years later and Varsity House is one of the premier training and performance gyms in the country. The physical gym is stunning (as you can see) but what Joe and Dan have built goes further than that. Varsity House is truly special…a place with its own sense of community & camaraderie. It’s not just a gym…but a permanent fixture in the lives of its people (like my mom and dad who each go 3 days a week for 10+ years.)

On the personal side, Joe and Dan have become lifelong friends of ALL the Druckers. Joe’s son Antonio calls my dad “Uncle LD”, Joe has become a mentor to Gabby as she pursued her career in fitness, we’ve enjoyed beach days in both July and January ( ) and I’ve been fortunate to work with the Varsity House team on their financial & retirement planning. And to think this whole relationship started in a corner of a small space as I tried to catch my breath when I was 14 (Gabby was fine.)

This is supposed to be a “finance” instagram, so I’ll end with this. Joe and Dan turned their passions into a career and their obsessions into a business that they give 100% of themselves to. They love what they do. As I feel the same way, I know how truly unique and fortunate we all are to share that.

Proud to have Joe, Dan, and Varsity House in my life!

I recently had the good fortune to tell a client that they could (no, let me rephrase that … they should) spend an extra $5,000 on vacation this year. In fact, I think I told her that she should book her next trip the moment we got off the phone.

As you might imagine, I don’t always get to give such fantastic news when delivering a client’s Financial Life Plan. Instead, sometimes it’s my job to bring them to the realization that they actually have to make some big changes to get where they want to go.

I had an epiphany while trying to explain to Stephanie just how unique her plan results were and why she was in such terrific shape: Stephanie’s day-to-day spending habits could not hurt her.

I wanted to drill this point home because Stephanie was frugal by nature, and I needed to show her that she could increase her spending in a few areas that were important to her with zero negative ramifications. She needed to hear this, and hearing her positive reaction as I shared this over the phone was the highlight of my week.

The small financial decisions could not ruin her plan because she had already aced the big financial decisions in her life. These are decisions that you can ace, too.

Our goal in building out your financial plan is simple: How do we maximize your lifestyle, experiences and quality of life now without letting it negatively impact your ability to attain financial independence later on?
 
Check out the link in bio to read the full article I wrote on Forbes!
 

I'm honored to be recognized as an Top 100 Financial Advisor.

First off, I want to shout out the entire Drucker Wealth Team...I am so thankful that I get to work with all of you every day as WE continue to build something special.

I love what I do and I can't help but feel a sense of pride when thinking about the community of clients that we get to guide and grow with for generations to come.

Simply put, I could not imagine doing anything else.

----------------------------------------

The Investopedia 100 honors financial advisors who, "are making significant conversations about financial literacy, investing strategies, life-stage planning and wealth management.

With more than 100,000 independent financial advisors in the U.S., the Investopedia 100 spotlights the country's most engaged, influential, and educational advisors."

I'm truly honored to be recognized as an Investopedia Top 100 Financial Advisor.

First off, I want to shout out the entire Drucker Wealth Team...I am so thankful that I get to work with all of you every day as WE continue to build something special.

I love what I do and I can't help but feel a sense of pride when thinking about the community of clients that we get to guide and grow with for generations to come.

Simply put, I could not imagine doing anything else.

- Gideon Drucker, CFP® AIF® ECA

----------------------------------------

The Investopedia 100 honors financial advisors who, "are making significant conversations about financial literacy, investing strategies, life-stage planning and wealth management.

With more than 100,000 independent financial advisors in the U.S., the Investopedia 100 spotlights the country's most engaged, influential, and educational advisors."

Making a "dangerous" amount of money is a real thing.

If your household income is in the 250,000-$750,000 range you may want to keep reading...

Making a “dangerous” amount of money is one of the financial concepts that most immediately resonate with my clients, as after I describe it, I often hear: ”Yes! Wow, that describes me exactly!”  Ok, here it goes…

If you're making $75k-$100k annually you have to have a pretty good handle on how much you're spending, how much you're saving and what is left over each month if you want to save any sort of meaningful amount…

There's not so much "extra" and so it requires you to be extra diligent about how you are spending your money (even more so if you're committed to a savings goal).

On the flip side if you're making $5 million a year, you might not have felt the need to build an automatic savings plan...and, honestly, you're probably going to be just fine and are able to save/invest a lot of money each year just by accident (as long as you're not totally off your rocker..! 🙃)

But if you're making $250,000-$750,00 you're in this sort of "dangerous in between" position.

You're making enough to be totally comfortable, spending as much as you'd like with no real financial worries day-to-day…

BUT you're not so well positioned that you can just call it a day and expect to glide your way into retirement.

⚠️ And that is why so many of our HENRY clients fit into this "dangerous" income range...

They're making enough to be comfortable and content in the moment but not enough (yet!!) to be financially independent. They still have to put in the work, they still have to be intentional with their goals and financial behavior. In other words, they need a financial plan…a lifelong financial decision center that will help them ensure they’re moving in the right direction and are doing EVERYTHING they need to maximize their money and reach their long term financial goals.

Do you relate to this situation? Feel free to book a 15 minute Right Fit Call! 📞

Growing up as a Drucker, I’ve lived with a planning mindset my whole life, and so, in many ways, the Wealth Builder division and the community we’ve created feels like it’s three generations in the making.

It’s the fulfillment of sixty years of commitment, sacrifice, and, ultimately, financial independence achieved by my hero (my dad) and his hero (his dad).

I’m humbled beyond words that I get to work with individuals and share the timeless principles that have guided them both through the decades and that have inspired and motivated me to become a guide for our “next generation of clients” - those just starting out in their careers, with young families and new financial responsibilities.

To all the dads, happy Father’s Day. And especially to my dad, Lance Drucker, thank you for your inspiration, guidance, and unwavering support.

Today I am answering a Frequently Asked Question (that always makes me laugh if I’m being honest) Find out why below:

👉 "What differentiates you from other firms?"

Read my blog to find out exactly how I answer this FAQ!

- Gideon Drucker, CFP® AIF® ECA

FAQ... “What differentiates you from other firms?" This is always one of my favorite questions to get asked by a prospective client on a Right Fit Call; in part because of WHEN it is being asked.

Do you work in tech & media? 👩‍💻

Join me Tuesday, 4/12 at 6pm for my live🎙️ webinar!

Learn how a Financial Life Plan® can help you make important employer benefit and equity compensation decisions to accumulate money for now, soon, and later!

Discover the following during this live webinar:

✅ How to accumulate $ for now, soon, and later with an 🔄 automated program.

✅ How to put together a step by step plan to achieve your lifetime financial goals. Learn how to save money from your various sources of income (i.e. salary, bonus, equity compensation planning and RSUs) tax-efficiently in a way that’s coordinated with the time horizon of your lifetime financial goals.

✅ How to lower your Future Tax Bill through proactive tax & investment planning. We will discuss the Mega Backdoor Roth conversion, how to think about saving 401(k) money Pre-Tax, Roth, After Tax & How to avoid major taxable events when selling vested Restricted Stock Units.

Can't wait to see you live! 😄

Gideon Drucker, CFP® AIF® ECA

Stock Option Webinar - Drucker Wealth Discover how a Financial Life Plan™ can help you make important employer benefit and equity compensation decisions to systematically accumulate money for now, soon, and later to achieve your financial goals.  

Lance Drucker has decades of wisdom to share with our Wealth Builder division.

In his latest article ✍️ published with Forbes he shares a personal story and explains why we believe wholeheartedly in our Planning First approach.

Read the full article below!

If nothing else, check out this excerpt that perfectly encapsulates the essence of our Financial Life Plan® proven process,

"A “really good plan” won’t be perfect, (because I remember my dad saying “perfect is the enemy of good”) but it should become the North Star ⭐ in your journey.

Having a plan or proven process that resides somewhere other than your mind is the key to successful long-term planning/wealth management.

Your plan needs to become your financial decision center; every major financial purchase or decision gets run through the “plan” so you are no longer operating in a vacuum.

Most successful people in sports, business or just life have some type of process they use to achieve their success.

Once they achieve a modicum of success in their pursuits, the habits they stuck to go from being a process to their “proven process” as it helps them hit consistent, achievable goals in their pursuit of success."

👉 Questions about your own financial world? Let's connect over a 15 minute 📞 Right Fit call! https://lnkd.in/egNuCVUt

- Gideon Drucker, CFP® AIF® ECA

Council Post: The Power Of Process In Financial Planning Having a plan or proven process that resides somewhere other than your mind is the key to successful long-term planning/wealth management.

"When it comes to your money, earning it is only half the battle. 👩‍💻

Once you've got a balance in your bank account 🏛️, putting a plan in place to , , and it is crucial to your long-term financial well-being." 🙂

Check out the Business Insider article Autumn Lax, CFP®, AIF® was interviewed in!

Autumn shares actionable steps you can take today to pay yourself first to help amp up your savings! 💰

A pay-yourself-first budget is a simple way to amp up your savings. Here's how it works The pay-yourself-first method of budgeting prioritizes savings goals over monthly expenses and discretionary spending.

Do you make a dangerous amount of money? 🤔

Gideon Drucker, CFP® AIF® ECA talked all about his book 📗 "How To Avoid HENRY Syndrome" and what it means to make a ⚡dangerous⚡ amount of money with FOX19 WXIX.

Check out the interview below... 🎉

Financial Strategies: How to Avoid H.E.N.R.Y. Syndrome

I’ve rounded up my 5️⃣ key takeaways regarding the proposed tax legislation and how it may affect our Wealth Builders!

1️⃣ This was only the first draft of the legislation.

A lot needs to happen for this to go into effect. So consider this my official caveat & desire to “wait and see” a bit before we start making changes.

2️⃣ This proposed change would eliminate the ability to do a Backdoor Roth IRA.

A backdoor Roth IRA is when we park After-tax dollars into your Traditional IRA and then convert them into a Roth IRA. We’re able to do this without a tax consequence because the funds come from After-Tax dollars. That’s the “backdoor” nature of the Backdoor Roth IRA. If the legislation goes into effect, After-Tax amounts in retirement accounts will no longer be eligible for this exact type of conversion into a Roth. They would remain in the After-Tax account.

3️⃣ We would no longer be able to do the Mega Backdoor Roth IRA. 

A brief reminder: A Mega Backdoor Roth IRA is when we contribute money to your After-Tax 401k (only if your company offers one) and then convert the funds into either the plan’s Roth 401k or a Roth IRA.

4️⃣ In either case, we would STILL be able to contribute money to these After-Tax accounts. 

We just wouldn’t be able to convert them into a Roth. This is still tax-deferred savings…just not as great as getting the money into the Roth like we do now.

5️⃣ If you are in the highest income bracket, ($400k Single; $450k MFJ), you will no longer be able to complete Roth conversions. 

A Roth conversion is when we take Pre-Tax IRA money, pay the taxes up front, and then convert the full amount into a Roth IRA.

So what does this all mean for my existing clients? 🤔

✅We will adapt, as we always do.

I’ll remind you that a far greater effect on your financial future is this,

❕❕...how much you’re able to save and how committed you are to staying the course even as the world changes around us!

If you have questions about your financial world, book your Right Fit call - 🔗 link in bio!
⠀⠀⠀⠀
🏛️ Follow for more finspo ⠀⠀⠀⠀⠀

Today I am giving you a behind the scenes look of my office …and of our Financial Life Planning™️ process!👇🏼

In part one I explained why having the answer to 3 specific questions is the very first step.

Have you answered these 3 questions?
* How much excess saving capacity do you have left after all of your expenses are taken care of?
* What percentage of your gross income does this saving capacity equate to?
* Will saving/investing this amount of money allow you to reach your specific financial goals?

If your answer was no ❌...don't panic! Most people we connect with initially start off not being able to answer these questions either. It is normal.

If your answer is yes ✔️ ...great! Let's move onto the next stage in the Financial Life Plan™️ process...

At this point, you know exactly what your current savings capacity (an actual dollar amount) looks like and what your savings rate (money saved divided by gross income) is.

To re-iterate, *these 2 figures are crucial!*

How else could anyone make recommendations or suggest changes if they don't know where you stand?

Once we know your saving "capacity" we’ll advise you on whether or not to follow through on this saving/investing amount.

FYI in case you are wondering...

I will never show someone a plan that DOES NOT WORK.

✅ Most goals are possible with the right adjustments.

👉 I will also show you exactly what it will take to get you in better shape and get where you want to go most efficiently.

The bottom line is we WILL show you what needs to be done.

It all starts with lifting up the hood of your financial world and diving in.

If you have questions about your financial world, please set up your Right Fit call at the 🔗 link in bio!

Share & save if you found this useful.
⠀⠀⠀⠀
🏛️ Follow for more finspo ⠀⠀⠀⠀⠀

I was recently asked to become a Forbes contributor and write an article for their Finance Council.

Not going to lie, as someone who respects Forbes as a publication and loves to write... I definitely had a *wow* moment.

Check out the article on Forbes! "What Is Your Money Mindset?"

- Gideon Drucker

Council Post: What Is Your Money Mindset? This is textbook lifestyle creep: finding new ways to spend money (consciously or unconsciously) as your income goes up.

I run every morning 🏃along the East River in NYC.

Before I head out, I drink wayyy too much coffee ☕ more than I care to think about.

Of course, I run to stay in shape...but at this point, it's also just become a 🔁 habit.

I sweat, clear my head, listen to a podcast (currently: The Rewatchables by Bill Simmons), mentally run through meetings and Right Fit calls on my calendar and come back ready to start my day.

The way I think about it, 🌅 STARTING my day the way I want is what allows the rest of my day to reach it's potential. (Wow...getting deep here💭)

I can think of no better metaphor for financial planning.

Taking the first step and starting Part 1️⃣ of our planning process is BY FAR the most important part.

It doesn't matter if what comes after (the recommendations, investments, retirement accounts etc.) is more technically impactful...none of it happens without completing the first part.

I want to peel back the curtain of what happens in Part 1️⃣ of designing your Financial Life Plan:

What is the "morning run" of building a financial plan?

We want you to be able to answer these 3 questions:
1. How much excess saving capacity do you have?
2. What percentage of your gross income does this saving capacity equate to?
3. Will saving/investing this amount of money allow you to reach your specific financial goals?

👉The first part of the process is figuring out how you actually spend your money month to month.

✅ We'll uncover fixed expenses: They are relatively static: (rent/mortgage, groceries, subscriptions, car payments etc.)
✅ And then figure out your variable expenses: The more discretionary things, travel, gifts. And one-off "big" purchases (Vacations, school payment, buying a ring, down payment on a home)

👉 We need to know EXACTLY what these numbers look like to move on to the next step.

Without this step, how else could we possibly make recommendations or suggest changes to your financial world?

That's it for part one! Stay tuned for what happens in Part 2️⃣...

👉 want to address these questions? Book a Right Fit call at the link 🔗 in bio.

👥 Share & save if you found this useful.
⠀⠀⠀⠀
🏛️ Follow for more finspo

Thinking of quitting your job? 🤔

Autumn Lax, CFP at Drucker Wealth Management spoke with The Independent and shared a list of things to do with your finances before you quit your job... especially if you've been granted stock options and RSUs.

“You want to be sure you aren’t on the cusp of losing out on valuable equity compensation or benefits. 💸 This is particularly important for anyone who has been granted stocks as part of their compensation.”

Visit the link 🔗 below to read the full article!

Quitting your job? Here’s how to prepare your finances Planning and research are key when preparing to leave your current employer

I’ve been working from Montauk Beach 🏖️ for the past few weeks…

And mostly because my brother-in-law convinced me it would be “easy” I went surfing — if you count lying on top of your board hoping not to get smacked by a wave ”surfing”🏄‍♂️

Suffice to say, I’m not leaving the world of financial planning to go on the world surfing tour.

I’ve wanted to share a story that’s been bouncing around my brain for a while…🤔

Last month, I had a client reach out with the news they’d received their Q2 bonus. She followed the news by mentioning all of her accounts have done well and made money, so with this extra cash flow she was ready to put MORE money to work ASAP, so that it too can grow💰

And while it did make sense to get that bonus money invested for her, not going to lie, her thinking freaked me out!

“Invest and watch your money grow immediately”

This thinking has become so commonplace among so many people!

For most of us Wealth Builders that have only been investing diligently over the last 10-12 years, our expectations of “the market’s” are (understandably) totally out of whack!

U.S. Stocks have returned over 600% since March of 2009. Over the last few years especially, it seems like every time you look at your accounts, you’ve made more money! 📈

But, honestly, this type of thinking is dangerous…

My worry is that when the market “fall” does occur, we will be shocked and devastated.

And so, I view it as part of my job to constantly remind you of the following:

IT’S TOTALLY NORMAL FOR THE STOCK MARKET TO LOSE MONEY. 💸

Your INVESTMENTS accounts will go down soon. I don’t know if it’s in 6 days or 6 months but a downturn is coming! And it’s normal.

Having a plan is key 🔑And as your financial partner, we do everything we can to help our clients from veering off course.

🔗 Read the rest of the blog HERE: http://ow.ly/pnSV50FAV7P

👥 Share & save if you found this useful.
⠀⠀⠀⠀
🏛️ Follow for more finspo