Retirement & Wealth Planning for High-Income Earners
Your skills, ambition, and persistence have placed you among the country’s top income earners. A generous salary, performance bonuses, or profitable business dividends can open countless doors. However, high income alone does not guarantee long-term security. At Earnslaw Goodlight, we convert today’s exceptional cash flow into tomorrow’s financial freedom through tailored strategies that respect the unique challenges and opportunities faced by high-income professionals.
Why Retirement Planning For High Income Earners Feels Different
Top marginal rates quickly erode bonus payments and investment returns unless you use efficient structures.
Luxury travel, private schooling, or a larger home can absorb surplus income before it builds wealth.
Share options, profit share, or large commissions arrive in lumpy amounts that need disciplined allocation.
Growing net worth attracts legal or creditor attention, so trusts and insurance become more important.
Many executives hold overseas shares or property, adding currency and compliance complexity.
These factors require a retirement plan that combines sophisticated tax design with disciplined investing and clear long-term goals.
Core Building Blocks of a High-Income Strategy
1 | KiwiSaver & Employer Schemes
Even those earning well above the average can gain from maximising KiwiSaver advantages. We help you:
- Contribute at least 3% to unlock the full employer match and government tax credit.
- Use salary-sacrifice top-ups to lower PAYE while accelerating compounding.
- Select growth-orientated funds that suit a longer horizon yet switch to balanced options as retirement approaches.
2 | Tax-Efficient Investment Portfolio
Your surplus income deserves more than a savings account. Our advisors construct diversified portfolios that aim for strong after-tax returns:
- Portfolio Investment Entities (PIEs) to cap tax at 28 percent or your personal PIR, whichever is lower.
- Global equity and bond funds for broad diversification beyond the NZ market.
- Direct shares or private equity if you wish to allocate to specific sectors or ventures.
- Alternative assets such as commercial property syndicates or infrastructure funds to spread risk.
We rebalance twice yearly, pruning underperformers and harvesting tax losses where rules permit.
3 | Insurance & Risk Management
A high salary often supports dependants, business partners, or large debt. We design cover that protects both income and assets:
- Income protection at 75% of salary plus average bonus.
- Life and trauma cover scaled to clear mortgages, fund children’s education, and replace future earnings.
- Shareholder buy-sell or key-person insurance if part of your income stems from business ownership
- Umbrella liability policies shielding personal wealth from legal claims.
4 | Debt & Leverage Strategy
Borrowing can magnify returns yet also increase risk. We map a prudent approach:
- Rapidly amortise non-deductible debt such as personal loans.
- Consider interest-only investment property loans where cash-flow allows, while parking surplus funds in an offset account to reduce interest.
- Align repayment schedules with anticipated liquidity events like vesting share options.
5 | Philanthropy & Legacy Planning
Many high earners wish to give back or set the next generation up for success. We integrate:
- Charitable gifting plans that maximise rebate claims while supporting causes you value.
- Family trusts to protect assets and manage intergenerational transfers.
- Enduring powers of attorney and wills to ensure wishes are followed and probate delays are minimised.
How Earnslaw Goodlight Supports High-Income Clients
Specialist tax insight
We collaborate with your accountant to optimise PIE selection, foreign investment fund (FIF) obligations, and fringe-benefit management.
Cash-flow modelling
Real-time projections illustrate how annual bonuses, vesting shares, or property sales impact retirement age, so you can make informed choices early.
Independence
As a fee-only firm we have no commission bias, delivering advice based solely on merit.
Concierge implementation
Our advisors handle paperwork, liaise with fund managers, and arrange insurance medicals, freeing your schedule for family or business.
Ongoing reviews
Six-monthly meetings adjust strategies for legislative changes, market shifts, or career moves.
Our 6-Step Financial Advice Process
What We Do:
Clarify goals, map income sources, assess risk tolerance
Benefit to You:
Shared vision and priorities
What We Do:
Model scenarios, draft written plan covering investments, debt, tax, and insurance
Benefit to You:
Confidence numbers stack up
What We Do:
Open accounts, set up automated transfers, restructure debt, activate cover
Benefit to You:
Minimal admin burden
What We Do:
Track progress, fine-tune allocations, respond to life changes
Benefit to You:
Peace of mind and accountability
This globally respected framework keeps every element of your wealth plan under regular supervision.
Frequently Asked Questions
How much income defines “high” in NZ?
We start with a joint discussion to find a middle ground. In many cases separate accounts can hold different mixes while still aiming for the same overall goal.
Should I repay my mortgage or invest?
The answer depends on interest rates, risk tolerance, and goals. We compare guaranteed savings from debt reduction with expected after-tax returns on investments, then recommend a mix.
What is the best way to use annual bonuses?
We typically direct a portion to KiwiSaver or PIE funds on the bonus day, allocate some to mortgage offset, and ring-fence a lifestyle fund so you enjoy rewards without derailing the plan.
Do I still need KiwiSaver if my balance is already large?
Yes. KiwiSaver provides member tax credits and low-cost diversification. It should sit alongside, not replace, a broader portfolio.
Ready to Put Your Income to Work?
Earning well is only the first step. Turning income into lasting wealth takes structure, discipline, and expert guidance. Partner with Earnslaw Goodlight and discover how an independent advisor can sharpen your financial edge while freeing you to focus on what you do best.