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2. Maximizing revenue

As you set your career goals this year, one of them may be to maximize your income. Maybe you’ve taken the time to invest in yourself by getting a new degree or certification. Perhaps you have taken on more responsibility at work. Considering all this, you can increase your salary. We’ll dive a little deeper into salary negotiations in the next section.

But maximizing your salary isn’t the only thing that goes into maximizing your income; it’s also when and how you get paid. There are several components to maximizing income.

Deferral of income. It may seem counterintuitive, but one way to maximize your income is to defer some of it into the future, also called a non-qualified deferred compensation plan. This is a good option for you if you have a high salary and are in a higher tax bracket. If this is an option for you, weigh the risks and benefits.

One risk is that if your company goes out of business, you will not receive your deferred income. But if your company is established, the advantage is that you don’t have to pay taxes on your total salary, but only on the part that is paid to you that year.

Benefits: Discovering what company advantages you can use to maximize your income and earning potential is crucial. As this year begins, reach out to your human resources department to see what your company has to offer that you may not be taking advantage of.

For example, my company offers our stakeholders a wellness benefit where we are reimbursed for up to $300 in gym membership fees. We offer tuition reimbursement, professional development scholarships, and a matching gift program of up to $500 for donations to a favorite nonprofit organization. We also provide an additional $400 deposit to interested parties’ Health Savings Accounts (HSAs) if they pass their annual screening.

Make sure that if you have such advantages, you take advantage of them. Also, max out your 401(k) contributions to get the full match from your employer. Ask your HR department if your company offers other benefits, such as legal services, childcare benefits, or other types of benefits that you may be able to take advantage of.

Equity. In some organizations, when an employee reaches a certain level, equity compensation is possible. It makes sense that as you progress in your career and move up the ranks, you ask if equity compensation is an option for you. Your equity-based compensation will likely cost you less in tax than ordinary income.

Work with your financial professional to make sure you’re maximizing your income. They can make referrals based on your specific situation.



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