Middle America
A Mutual Respect for Serving Middle America
Onyx Investments rightfully respects Middle America as the true backbone of this Nation. We have called Chicago our home since 2004 and fully embrace the blue-collar work ethic of the Industrial Heartland. For Onyx, Middle America is more than a geographical location or even an occupation. Middle America is a mindset.
Middle America appears to be perpetually locked into stalemate war upon all fronts: rampant inflation, excessive taxation, and job insecurity. Still, Middle America is pejoratively mocked as “flyover country,” as if these nationwide issues do not also seep into the aspirational class.
Onyx Investments fully expects much of our young professional group to graduate into the middle class. From here, Onyx is on a Mission to anoint the latest Millionaires Next Door, out of the real engine of the domestic economy.
Middle America Lifestyle
Financial goals will gradually shift throughout your lifetime. Now, the middle-income client is more so settled and ready to meet the needs of a growing family. Here, typical life goals would call for the financing of your children’s education alongside planning for your own retirement and estate.
It is critical that we collaborate to prioritize goals, so to maximize the utility for each dollar spent. Concerned parents, for example, must recognize that loans are available for tuition, but no bank will extend credit for your own retirement.
Taking Financial Inventory
Onyx Investments will toggle through multiple savings, return, and inflation projections, with your list of prioritized goals in hand. At this point, we will take an honest assessment of your personal finances to determine whether all of your stated goals are actually realistic. As a middle income saver, desperately working to keep up with the Joneses will ultimately prove to be catastrophic.
Onyx takes full inventory of your current assets, liabilities, insurance policies, income, and expenses. For middle income prospects, we often times discover a hodge-podge of items and financial products, without a coherent plan. Our initial assessment may suggest that you slash discretionary spending, build out emergency reserves, and sell off underperforming assets to free up cash flow to invest.
Funding Your Retirement Accounts
Retirement accounts are especially important for middle income savers, who are all well within sight of the finish line. At this stage, you should be very much familiar with 401(k), Traditional IRA, and Roth IRA accounts. Retirement accounts offer tax-deferral, which means that interest, dividends, and capital gains are tax-free, as they occur within your account. Tax-deferral does come with the caveat – that early withdrawals made before age 59 ½ may be heavily taxed and penalized. Retirement accounts are structured to promote long-term investment.
Pre-tax money funds 401(k) and 403(b) accounts that do also allow for matching employer contributions. Be further advised that 401(k) and 403(b) distributions will be taxed as ordinary income upon retirement.
Alternatively, after-tax money funds Roth IRAs, which do allow for tax-free future withdrawals. Over time, your retirement portfolio might also include a rollover and Inherited IRA. Onyx Investments is committed to walking you through the byzantine retirement plan selection and funding maze.
Financial Strategy
Diversification is a statistical method for combining uncorrelated assets to mitigate financial risks, while still allowing for a measure of growth. Onyx Investments recommends that middle income clients diversify across the breadth of a total portfolio that includes cash, fixed income, real estate, retirement accounts, and taxable investments. Yes, our Millionaires Next Door always come from the stock of middle-income clients who live far below their means and pour cash into assets.
Still, we all put our pants on one leg at a time, no matter the size of our respective investment portfolios and bank accounts.