What if the number you track every quarter tells you almost nothing about the shape of what you have built?
Today I walk through an exercise instead of a story. Three columns on one page. Money you have already paid tax on. Money you will owe tax on when you take it out. Money that comes out without tax.
Most families in their forties and fifties find one enormous column and two small ones. I explain why that happens, why it was decided by a payroll form rather than a plan, and why having balances in all three is about flexibility rather than tax rates.
I also talk about where cash fits, and where my own page was lopsided for years.
The takeaway this week is the page itself. Every account, in one of the three columns, with its balance. Then total each column and look at the three numbers side by side.
Connect with Paul
If you're a working parent juggling a senior-level career and a growing family, and you're tired of coordinating four different advisors to run your financial life, I offer complimentary 30-minute conversations. Schedule one here.
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