How to Invest Your $200K Paycheck Like a Pro

From a CFP® and Fee-Only Financial Advisor in Charlotte, NC (and Beyond)

Let’s say your household brings in $200,000 after tax each year. That is a strong income, but now you are asking:

“How do I actually invest this in a smart, intentional way?”

With so many account options like 401(k)s, Roth IRAs, HSAs, brokerages, it's easy to feel stuck. But when you follow a clear and thoughtful plan, you can build real wealth, lower your tax bill, and make your financial life way less stressful.

As a CFP® (Certified Financial Planner) and fee-only financial advisor based in Charlotte, North Carolina, here is how I help clients here and around the country do exactly that:

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Step 1: Build an Emergency Fund

Before investing anything, stash away three to six months of expenses in a high-yield savings account or a money market fund. This is your safety net for job loss, a global pandemic (yikes!), car repairs, or medical bills.

If your monthly expenses are around $10,000, aim for at LEAST $30,000 in this account.

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Step 2: Max Out Your 401(k) Match

Let’s say one spouse has a 401(k) with a 5% employer match if that spouse also contributes 5%. At a $200,000 household income, 5% equals $10,000. That is $10,000 you do not have to earn yourself plus the $10,000 you contributed to get the match. Take the match. Always.

Some ambitious savers contribute more than the threshold to get the match. For example, some 401(k) plans offer “mega backdoor” options. Your future self will thank you. But just remember: a lot of life’s biggest expenses happen before age 59 and a half. That 401(k) money is locked up for a while.

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Step 3: Contribute to an HSA (If You Are Eligible)

If you are on a high deductible health plan, you can contribute up to $8,300 as a family in 2025 ($4,300 for individuals).

Think of it as a supercharged retirement account with triple tax advantages. Your contributions reduce your taxable income, the money grows tax free, and withdrawals for qualified medical expenses are also tax free.

Many major Charlotte employers offer high deductible plans that make you HSA eligible. It is a stealth retirement tool if used wisely.

Personal tip: My wife and I pay our medical bills out of pocket and save the receipts in a shared folder. We let the HSA money grow. Since we “never” reimburse ourselves from our HSA for current medical expenses, we can use our receipts to reimburse ourselves for non-medical expenses when we turn 65. Hence, a supercharged retirement account.

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Step 4: Fund Roth IRAs (Or Do a Backdoor Roth)

Depending on your income, a Roth IRA offers tax free growth and withdrawals in retirement. If you are over the income limit, a Backdoor Roth IRA might still work. Definitely talk to a CFP® to get this right.

Contribution limits in 2025 are $7,000 per person (or $8,000 if you are over 50).

If you go the backdoor route, make sure it is done correctly. If not, you could end up paying taxes twice on the same money.

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Step 5: Invest in a Taxable Brokerage Account

Once you have maxed out the accounts above, start investing the rest in a taxable brokerage.

Remember what I said in Step 2. Some savers pile extra into their 401(k) and skip the taxable account. That could backfire if you are locking up money you may need before retirement.

Taxable brokerage accounts are flexible. They are great for early retirement, starting a business, buying a home, or just building wealth on your own terms.

At a $200,000 income level, it is common to funnel $20,000 or more here annually if your spending is aligned with your goals.

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Step 6: Review and Rebalance Quarterly

At least once a quarter, check in on your plan:

• Rebalance your investments (this is key)
• Adjust for any income changes or new goals
• Look for tax loss harvesting opportunities to reduce your tax bill

If you work with a fee-only CFP®, they will likely handle all of this for you behind the scenes while keeping your overall plan on track.

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Step 7: Work With a Fee-Only CFP® in Charlotte (or Wherever You Are)

As a fee-only financial advisor in Charlotte, I help busy professionals across the country simplify their money and invest with intention. I do not sell products. I do not earn commissions. Just real, unbiased advice built around your life.

Whether you are in Uptown, NoDa, South End, or living somewhere else entirely, we can work together in person or virtually.

Book your free 30-minute anti-sales call and let’s build a custom strategy for your paycheck and your future.

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📅 [Schedule Your Anti-Sales Call Now]

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