As we approach the end of 2025, high-earning professionals and business owners who fall into the HENRY category — High Earners, Not Rich Yet — are thinking strategically about their financial future. Despite six-figure incomes, many HENRYs find themselves feeling “not rich yet” because wealth accumulation hasn’t kept pace with lifestyle costs, tax liabilities, or long-term financial goals. This is where thoughtful year-end financial planning can help make a measurable difference. Empower
At BAS Financial, we work with individuals and business owners who want financial confidence, tax-efficient growth, and clarity of purpose — not just high income. Today’s article walks through the most impactful moves HENRYs can make before 2026 to help stay ahead of taxes, boost savings, and set up meaningful wealth growth.
1. Reassess Income, Spending, and Financial Goals
One of the most overlooked components of financial planning for HENRYs is tracking real spending and aligning it with goals. Many high earners experience lifestyle creep, where income increases are absorbed by higher expenses rather than increased savings and investments. Empower
Action Steps Before Year-End:
Review 2025 spending and categorize expenses to identify savings opportunities.
Set or refine goals for 2026 (e.g., retirement targets, debt reduction, investment growth).
Use cash-flow tools or budgeting platforms to make your financial life more visible and deliberate.
This foundation ensures that every tax and savings strategy is grounded in goals that matter to you, not just your income number.
2. Maximize Tax-Advantaged Retirement Contributions
HENRYs often have access to employer plans like 401(k)s or solo 401(k)s (for business owners) as well as IRAs. Maxing out these accounts before year-end is an efficient way to lower taxable income today and accelerate compound growth. CNBC
Key Opportunities:
401(k) Contributions — Maximize your employee contribution and, if available, employer match.
IRA Contributions — Use traditional or Roth IRAs where eligible.
Health Savings Accounts (HSAs) can provide triple tax advantages: pre-tax contributions, tax-free growth, and income tax-free qualified withdrawals. Fulcrum Financial Group
These steps help reduce your 2025 taxable income, provide retirement security, and create options for tax-efficient withdrawals later.
Find out more about Retirement Myths here.
3. Deploy Tax-Efficient Investment Strategies
Beyond retirement accounts, HENRYs need a diversified investment approach that considers tax efficiency. This includes:
Tax-loss harvesting to offset capital gains.
Donor-advised funds (DAFs) for charitable giving with a tax deduction now and strategic distribution later.
Brokerage accounts where after-tax contributions can be invested and accessed before retirement. Accounting Insights+1
These strategies help to retain more of your returns while aligning investment growth with your long-term goals.
4. Reduce or Restructure High-Interest Debt
Even with high income, debt — especially high-interest credit or variable loans — can erode financial progress. Addressing these obligations before the year closes increases your capacity to save and invest in 2026. FinanceFacts101
Tips:
Consolidate high-interest debts with lower-rate instruments where appropriate.
Evaluate student loans or consumer debt for refinancing.
Prioritize paying down debt that costs more after taxes than potential investment return.
A solid debt plan enhances cash flow and reduces financial stress — a meaningful win heading into the new year.
5. Estate and Legacy Planning Considerations
Estate planning isn’t just for the ultra-wealthy. For HENRYs, protecting family and legacy is essential. As tax laws shift and exemptions evolve, make sure your estate plan matches your financial status and goals.
Consider Before Year-End:
Review beneficiary designations on retirement and investment accounts.
Discuss trusts, wills, and gifting strategies with your advisor.
Evaluate how future tax changes could affect asset transfer. Accounting Insights
These steps help ensure your financial successes benefit your heirs and philanthropic priorities.
6. Plan With 2026 in Mind — Not Just 2025
Financial planning is holistic. This means reviewing anticipated changes for the coming year — such as potential tax law shifts, retirement contribution limits, or income changes — and factoring them into your year-end plan now. Setting intentions for 2026 gives your finances momentum, not just recovery after closing a calendar quarter.
At BAS Financial, we help clients convert income into security, flexibility, and confidence. Whether you’re a business owner ready to optimize retirement savings or a professional striving to tame taxes and amplify growth, the strategic moves you make now will shape your financial year ahead. Get a jump start on 2026 by scheduling a complimentary consultation now: Complimentary Consultation
Conclusion
For HENRYs in 2025, financial planning is less about income and more about impact: minimizing taxes, maximizing long-term returns, and safeguarding wealth. Review your goals, implement tax-savvy strategies, and arm yourself with a plan that carries into 2026 — not just ends 2025. When executed thoughtfully, these actions can transform a high income into real, sustainable wealth.
Sources
High Earners, Not Rich Yet (HENRYs): 3 Financial Moves To Make, CNBC Select. CNBC
HENRY Finance: Financial Strategies for High Earners Not Rich Yet, Accounting Insights. Accounting Insights
Tax Planning Tips for High Earners Not Rich Yet, Fulcrum Financial Group. Fulcrum Financial Group
What is a HENRY? Financial Challenges in 2025 [US Edition], Project Henry. Project Henry
Understanding High Earners, Not Rich Yet (HENRYs): Strategies to Build Wealth and Reduce Debt, FinanceFacts101. FinanceFacts101