Here I go again with money moves I’ll make in our family finances for 2025, as this has become an annual topic. Many times, clients will ask how I invest money for my family. That’s a great question I will always take the time to answer and expand on, as I pride myself on being completely transparent. The first thing I start with and end with is to be consistent! Consistency is key in anything I do, and investing carries the same weight. I follow these simple rules, which are not fancy, but it takes consistency and discipline. 50/15/5

• 50% is living day to day with some fun mixed in
• 15% in a retirement bucket
• 5% is a taxable savings bucket
• 30% goes to Uncle Sam

Day-to-Day Bucket—My Family and I try to be consistent (that word again) and live off 50% of our income. Of course, there are instances when we spend beyond that, but we do try to stay dedicated to our 50% rule. If we don’t spend the full 50%, we will transfer the remaining funds to savings until we need them or invest them.

Retirement Bucket / Investment Bucket—We have made some changes to this. We are only maxing out my wife’s Roth 401K and contributing to a backdoor Roth for both of us. Instead of maxing out my Roth 401K, we are applying those funds to a brokerage account to give us more flexibility and freedom with our cash and investment options. You are sometimes limited in a 401K.

We don’t utilize the company match within the plan; money can be better used to invest in the company and ourselves. The investments we choose are mostly dividend-paying ETFs and active mutual funds.

Taxable Savings Bucket—We will put at least 5% of income in this bucket, but we will not add any more to our cash reserve as we have met our goal of saving 6 months of expenses in cash. If you go over that amount, you are losing money saving with inflation, and plus, rates are dropping and will be dropping. We are different in this category as we like to invest personally and not leave excess cash in non-investment accounts.

Of course, we consistently max out our HSA (Health Savings Account), which might be our favorite tax advantaged account.

Lastly, we have consciously decided to give back and have opened a Donor Advisor Fund to contribute to local charities. We add about 1-2% of income to this account for the benefit of others. This is my wife’s favorite account.

Markets Will Fluctuate—When you see your taxable savings go down, I understand it can be a little stressful, but remember this: On the way down, it is a great way to buy sound companies at a discount.

Uncle Sam always gets their cut. As Ben Franklin said, “The only constant in life is Death and Taxes.” I know this isn’t for everyone, and that’s the beauty of life. Everyone is different. Choose to be consistent with your finances; you’ll be amazed at how far it can take you.

Chris graduated from the University of Maine, where he played hockey on a scholarship, and retired from professional hockey in 2007. In the community, he remains engaged, serving as a youth hockey coach. Chris holds the CERTIFIED FINANCIAL PLANNER™. Outside the office, he enjoys trying new food and wine, reading, traveling, playing golf and hockey, fat tire biking, and donating to local charities. His passions include being a husband and dad, lake life with the family, watching his son and daughter play sports, and spending time with his wife. To learn more about Chris, connect with him on LinkedIn.