Standing at over 1,000 pages, the bill permanently extends many provisions originally introduced in the 2017 Tax Cuts and Jobs Act (TCJA), while enacting changes across many facets of the federal government and tax code. Below, we’ve zeroed in on a few of the most prominent and impactful changes likely to make a difference in your tax bill over the coming years.

#1. Permanent TCJA Tax Cuts and Deductions

The OBBBA has permanently extended the TCJA-era tax brackets and standard deductions. Without this legislation, these benefits were set to expire in 2026. The top tax rate remains at 37%, and the standard deduction gets a small bump: $15,750 for single filers and $31,500 for married couples in 2025.  For many of you, taking the standard deduction replaced itemizing deductions with the TCJA changes. We’ll want to revisit this based on the changes to the SALT deduction (see below).

#2. New “Super Deduction” for Seniors

Starting in 2025, taxpayers 65 and older with income under $75,000 (or $150,000 for couples) can claim an additional $6,000 deduction, or $12,000 if both spouses are over 65. This benefit phases out for incomes above $175,000 for single filers and $250,000 for joint filers. For now, the super deduction will only be available through the 2028 tax year.

#3. Estate Tax Exemption Limit Remains High

Originally introduced in the TCJA, the elevated federal estate tax exemption will no longer sunset in 2026. In 2025, the estate tax and lifetime gift tax exemption limit is $13.99 million per person or $27.98 million per couple. Considering the TCJA doubled the pre-2018 estate tax exemption limit, this continuation can offer families with significant assets and estates more flexibility with their wealth transfer strategies.

#4. State and Local Taxes (SALT) Itemized Deduction Increase

We see this as the biggest impact for most of our clients.  The state and local tax (SALT) deduction limit increases from $10,000 to $40,000 in 2025, with gradual increases through 2029. High-income households will face some phaseouts, but the exemption limit will never drop below $10,000. This increase in SALT deductions is significant, as it could make itemizing more worthwhile (despite the elevated standard deduction), especially in states with higher state and local taxes like New York or California.

#5. Changes to Charitable Deductions

Taxpayers will have the option to take above-the-line charitable deductions of up to $1,000 per person ($2,000 for couples) starting in 2026. If you do plan on itemizing, however, you’ll only be allowed to deduct donations that exceed 0.5% of your adjusted gross income (AGI). You will have the option to carry forward unclaimed charitable donations to deduct in future tax years.  When it comes to choosing to bunch charitable giving, we would suggest reaching out to us or your CPA for guidance here.

#6.  Tax Benefits for Parents and Families

The Child Tax Credit (CTC) is now permanent and currently $2,200/qualified child.  This amount will increase for inflation, but there are still phase-outs.  For families with dependents who don’t qualify for the CTC, there is a now permanent $500 credit/dependent. There are some good changes to 529 accounts.  

The definition of a Qualified Expense has increased to include up to $20,000 for K-12 expenses, as well as continuing education and credentialed programs.  You may have heard of the Trump accounts-they are a new type of savings account for children under 18 beginning in 2026.  

They are tax deferred accounts and no withdrawals can be made until the child reaches age 18. Think of these as similar to IRAs.  If withdrawals are made before age 59 ½, there is a 10% penalty unless the money is used for higher education or up to $10k for a first time home purchase. The federal government will contribute $1000 automatically for children born between 2025-2028.  

Parents can contribute up to $5000/tax year adjusted for inflation, and employers can contribute as well.  We think these could be an option for additional savings once a family has contributed the maximum to their child’s 529 account but a 529 has much more flexibility and better tax advantages for parents’ contributions.

What Should Taxpayers Focus On Moving Forward?

While some provisions are permanent, others are set to expire in 2028, including the senior super deduction, tip and overtime deductions, and the extra Child Tax Credit. As you and your tax professional or advisor plan ahead, be mindful of these timelines. For example, with higher SALT caps and new available deductions, some taxpayers may benefit from temporarily itemizing instead of taking the standard deduction.

We’ll be addressing how these changes affect you personally when we meet but wanted to make sure you are aware of some of the key changes. If you have any questions or would like to review these changes together in more detail now, don’t hesitate to reach out today.

The post A Quick Guide to the One Big Beautiful Bill Act (OBBBA) appeared first on WealthChoice.

If you’re debating whether to take the leap from employee to entrepreneur, you’re not alone in feeling both excited and overwhelmed by the financial implications of this decision. 

The truth is, with the right financial foundation, you can build a business that not only survives but thrives. This isn’t just about having enough money in the bank. It’s about creating systems, boundaries, and strategies that will support both your personal financial well-being and your business dreams.

Building Your Pre-Launch Financial Safety Net

Before you hand in your resignation letter, you need to create a financial safety net. While conventional wisdom suggests 3-6 months of expenses might be enough for most W2 employees with relatively predictable income, entrepreneurs should aim for 12-18 months of personal expenses saved before launching their new venture. This isn’t pessimism; it’s realistic planning that accounts for the time it takes most businesses to generate consistent income.

Your safety net should be calculated based on your personal expenses only—not business expenses. Create a bare-bones budget that covers your essential personal costs: housing, utilities, food, transportation, insurance, and minimum debt payments. This becomes your monthly survival number. Then, multiply it by 15 to get your target emergency fund.

Consider keeping this emergency fund in a high-yield savings account that’s separate from your regular checking account. The physical separation creates a psychological barrier that prevents you from dipping into it for non-emergencies, while the higher interest rate helps your money work harder for you.

Another critical component of your personal “safety net” is health insurance. Losing employer-sponsored coverage is one of the biggest financial shocks new entrepreneurs face. Before you jump in feet first, make sure you research marketplace options, consider short-term coverage, or explore joining your spouse’s plan if possible. Factor these premiums into both your emergency fund calculations and your ongoing business budget – the last thing you want is to get stuck with emergency medical expenses while your budget is already tight!

Finally, consider creating extra security within your “safety net” by setting up a legal entity for your business, like an LLC. This can help to protect you personally from any potential liabilities arising from your business. 

Keeping Your Business and Personal Finances Separate

One of the most critical financial foundations you’ll establish is the clear separation between your personal and business finances. This isn’t just good bookkeeping—it’s essential for legal protection, tax efficiency, and your own financial clarity.

Start by opening a dedicated business checking account as soon as you decide to move forward with your venture, even before you officially launch. Many banks offer business accounts with low or no monthly fees for new businesses. Having this account from day one establishes a paper trail and reinforces the legitimacy of your business in the eyes of the IRS.

Your next step is to apply for a business credit card. Use this exclusively for business expenses, no matter how small. Not only does this make expense tracking infinitely easier, but it also helps build your business credit history—something you’ll need if you ever want to secure business loans or higher credit limits as you grow.

Next, focus on creating a system for paying yourself from your business. Even if your business income is irregular, establish a consistent method for transferring money from your business account to your personal account to cover your expenses and day-to-day living. This might be a set salary, a percentage of revenue, or a combination of both. The key is consistency and documentation. Pay yourself like you would pay any other business expense, with intention and proper record-keeping.

Finally, even during early days, it’s important to set up separate accounting systems for your business. Whether you use simple spreadsheets or invest in accounting software like QuickBooks or FreshBooks, maintain separate books for your personal and business finances. This separation will save you countless hours during tax season and provide clarity about your business’s actual profitability.

Cash Flow Management for Variable Income

Managing cash flow as an entrepreneur requires an entirely different mindset than managing a steady paycheck. As someone who is paid four times a year, I am acutely aware of the importance of knowing my cost of living and business expenses. Awareness of your expenses and setting aside sufficient funds is crucial for business owners. Variable income demands more strategic planning, better forecasting, and often, more creative solutions.

Start by tracking your income patterns obsessively during your first year. Note seasonal trends, payment delays, and revenue fluctuations. Most service-based businesses experience some degree of seasonality, while product-based businesses often exhibit variations in sales based on marketing campaigns, economic conditions, or industry cycles. Understanding your patterns enables you to plan for lean months and capitalize on busy seasons.

Once you’ve established a bit of a baseline, you can create a cash flow forecast that projects your income and expenses 3-6 months ahead. Update this monthly as you gather real data about your business patterns. This forecast serves as your early warning system for potential cash crunches, helping you make informed decisions about everything from marketing spend to equipment purchases.

Finally, when you first get started in business, it can feel like you’re entirely at the whim of your client or customer to create cash flow. However, you can take charge here by establishing clear payment terms and a consistent collection process with your first client! 

Net 15 or Net 30 payment terms might be standard in your industry, but they can create significant cash flow challenges for new businesses. Consider offering small discounts for immediate payment, requiring deposits for larger projects, or utilizing invoicing software that facilitates quick client payments.

Strategic Tax Planning and Record-Keeping

Transitioning from employee to entrepreneur completely changes your tax situation, and many new business owners are unprepared for this shift. As an employee, taxes were largely handled for you by your employer. As a business owner, quarterly estimated tax payments, business deductions, and self-employment taxes become your responsibility to track and pay.

A good starting point is to set aside 25-30% of your business income for taxes each time you receive an invoice payment. Or, if you’re feeling relatively consistent with income and expenses, you can set these funds aside monthly or quarterly in a separate account earmarked for taxes.

Next, make sure you’re tracking your expenses: 

• Save every receipt
• Document every business expense or invoice
• Track your mileage for business trips 

Consider using apps like Expensify or Shoeboxed to digitize receipts as you go, or save them to a specific folder in your email if you’re entirely digital. The IRS allows business deductions for legitimate business expenses, but you need documentation to support your claims.

It can be helpful to partner with a CPA and a financial planner who specializes in working with small businesses, especially in your first year. The cost of professional tax preparation often pays for itself through proper deductions and strategic planning. A good accountant can also help you understand whether you should elect S-Corp status as your business grows, which can provide substantial tax savings on self-employment taxes.

Building Long-Term Financial Resilience

Financial resilience goes beyond surviving the startup phase—it’s about building systems that support sustainable growth and personal financial security throughout your entrepreneurial journey. Here are a few steps to get started:

Automate your savings and investment contributions just as you did when you were an employee. Set up automatic transfers to move money from your business account to personal savings, retirement accounts, and investment accounts. As an entrepreneur, you don’t have employer 401(k) matching, so you need to be even more disciplined about retirement saving.

Consider opening a SEP-IRA or Solo 401(k) for your business. These retirement accounts allow you to contribute significantly more than traditional IRAs—up to $69,000 annually in some cases. The contributions are tax-deductible business expenses, reducing your current tax burden while building your retirement security.

Your Entrepreneurial Financial Action Plan

Before You Quit Your Job

• Calculate your monthly personal survival budget
• Save 12-18 months of personal expenses in an emergency fund
• Research and secure health insurance options
• Open a business checking account and credit card
• Create a business plan with realistic financial projections
• Establish relationships with potential clients or customers
• Set up basic accounting systems (software or spreadsheets)
• Consult with a CPA about the tax implications of entrepreneurship

In the Startup Phase (First 6-12 Months)

• Implement strict separation between personal and business finances
• Set aside 25-30% of all business income for taxes
• Track every business expense with proper documentation
• Create a cash flow forecast and update it monthly
• Establish clear payment terms and collection processes
• Make quarterly estimated tax payments on time
• Pay yourself consistently using a predetermined method
• Build business credit by using your business credit card responsibly
• Network with other entrepreneurs and potential mentors
• Review and adjust your pricing based on real market feedback

Once You Hit the Ground Running

• Automate savings transfers to personal emergency fund and investments
• Open and contribute to business retirement accounts (SEP-IRA or Solo 401(k))
• Secure appropriate business insurance coverage
• Consider disability insurance to protect your income
• Evaluate your business structure for tax efficiency (LLC vs. S-Corp)
• Diversify income streams within your business model
• Build a business emergency fund (3-6 months of business expenses)
• Invest in professional development and business growth
• Create systems for scaling operations without losing financial control
• Plan for major business investments or expansions strategically

Launching with Confidence

The journey from employee to entrepreneur is one of the most challenging and rewarding paths you can take. While the financial aspects of making the change can feel overwhelming, remember that thousands of women have successfully made this transition before you. The key is preparation, systems, and the willingness to adapt as you learn.

Your financial foundation isn’t built overnight—it’s constructed through consistent daily actions, smart planning, and sometimes, learning from mistakes. Be patient with yourself as you develop new financial habits and systems. 

The statistics show that women-owned businesses are thriving, but behind every successful female entrepreneur is a solid financial foundation that supports both her dreams and her reality. You have everything it takes to build that foundation and create the business and life you envision.

The post Entrepreneurial Financial Foundations: Your Financial Roadmap from Employee to Entrepreneur appeared first on WealthChoice.

But before turning in your two weeks and moving on to bigger and better things, it’s important to review your financial landscape and make the necessary moves to prepare yourself for the changes to come.

Here are a few simple steps for preparing your finances for this next phase of your professional life.

Fill Your Emergency Fund

Everyone should have an emergency fund that’s able to cover unexpected expenses like job loss, surprise medical bills, or unexpected home repairs. How much you choose to keep in your emergency fund is up to you, but the general rule of thumb is to stash aside enough to cover between three and six months’ worth of expenses.

Though, under certain circumstances, you may feel more comfortable with closer to a year’s worth saved up. This may be the case if:

• You’re the family’s sole provider
• You have multiple dependents who rely on your income (spouse, children, older adults, etc.)
• You work in a relatively volatile industry

If you have a solid emergency fund that you feel comfortable living off of for an extended period of time, then you may be ready to make a career change. Otherwise, take some time (if you’re able) to grow your savings or transfer some of your less liquid assets into more easily accessible funds if necessary.

Consider Other Costs

Changing careers may incur some unexpected costs.

Depending on your situation, these could include:

• Relocating to a new city (and possibly adjusting to a higher cost of living)
• Professional equipment, supplies, or wardrobe
• Education, training, or certifications
• Professional insurance (for industries with liability concerns, like doctors, contractors, architects, etc.)

If you received benefits through your previous employer, such as health insurance, you’ll also need to consider how you’ll pay for continued coverage. If you’re unable to join a spouse’s health insurance plan, for example, you can continue your previous plan via COBRA (but the monthly premiums will be high). Or, you may be able to join a marketplace plan, though the premiums may still be higher since your employer is no longer subsidizing the cost.

Consider what other benefits or coverage your employer offered that you may need to address after leaving—401(k), disability insurance, life insurance, stipends, etc.

Look for Tax Opportunities

Anytime there’s a change to your work status, income, or family, it’s worth considering how your taxes may be impacted. If you take time off between jobs during this career pivot, for example, your income for the year may be lower than usual. Or, your career change might result in lower take-home pay (at least in the beginning).

If you fall into a lower tax bracket than usual, perhaps this could be a good time to do a Roth conversion. As a reminder, this is the process of transferring funds from a 401(k) to a Roth IRA and immediately paying the tax bill. Or, you could sell certain assets that may be subject to short-term capital gains rates (which are taxed at your ordinary income tax rate).

If you’re pursuing self-employment or spending money on professional development and education, you may be able to take advantage of additional tax deductions. We recommend speaking with a tax professional about your career change and circumstances, as they’ll be able to help you decide what strategies make the most sense to pursue now and in the future.

Fund Your Professional Growth

People change careers for many reasons, often it’s in pursuit of a fresh start or to follow a personal passion. If you’re making a fairly drastic change, or you’d like to improve your skillset before starting, you may want to focus some time, energy, and funds on professional development.

If you’re able, research your options at multiple price points—from free resources to paid subscription-based learning platforms to in-person workshops. Figure out what sort of development works best with your learning style and budget, and decide if it’s worth pursuing. Depending on the type of work you plan on doing, additional skills or certifications could lead to higher pay or a fast track to high-level positions.

Covering the Cost of Professional Growth

Before spending money out of pocket, check with your current or future employer about what opportunities or resources they have available. Some companies will put money towards advanced degrees or certifications—though often, you’ll need to make a commitment in return (like staying with the company for a certain number of years). 

If you have funds left in a 529 plan after a child went to college, you may be able to use withdrawals on eligible educational expenses (like course tuition). As long as the funds are used for educational purposes, they won’t count as taxable income—making them a tax-advantaged option when available.

Otherwise, you may need to incorporate anticipated professional development costs into your savings when preparing to make a major career pivot.

Changing Paths Soon? Prepare Your Finances First

If you’re thinking about switching jobs and trying something new, we applaud you for taking such an exciting next step. As you prepare for the journey ahead, consider what steps you may need to take to increase your financial stability through any hurdles that may arise. You may find it helpful to speak with a financial advisor about your intentions and concerns.

If you’d like to schedule a time to talk with our team at WealthChoise, we encourage you to book a complimentary consultation now.

_______________________

Sources:
1: https://study.uq.edu.au/stories/how-many-career-changes-lifetime

The post Thinking of Making a Major Career Move? Here’s How to Prepare Your Finances First appeared first on WealthChoice.

At WealthChoice, we specialize in crafting customized financial plans tailored to women’s unique needs. Let’s explore how to define your vision, prioritize your goals, and build a financial roadmap to support your dreams.

What Do Your Next Five Years Look Like?

The first step to creating a 5-year financial plan for women is to visualize where you’d like to be in five years. What does success look like to you? Is it a career milestone, starting a business, buying a dream home, or funding your child’s education? Maybe it’s retiring early or transitioning into a role that offers more flexibility.

Women executives face unique challenges when it comes to financial planning—career gaps, caregiving responsibilities, and systemic pay gaps. That’s why it’s crucial to ask yourself what you want, rather than defaulting to societal expectations or outside pressures.

What Are You Planning For vs. What You Think You Should Be Planning For?

One common mistake women make is financial planning based on what they think they should prioritize. For example, you might feel obligated to plan for your children’s futures before your own. Typically, they have a much longer runway for their financial goals, however this “obligation” can more drastically impact your plan and retirement goals. While caring for loved ones is important, your financial health needs to come first. A solid 5-year financial plan will give you the foundation to support others while achieving your personal goals.

Ask yourself:

• Am I saving for what truly matters to me?
• Are my goals aligned with my personal vision for the future?
• Am I balancing my current needs with my long-term aspirations?

To make this easier, we created the Passions and Pursuites worksheet, which you can snag here. 

How to Determine Priorities and Align Finances

Defining your priorities starts with understanding what matters most. Take the time to list your goals and categorize them: short-term (1–2 years), mid-term (3–5 years), and long-term (5+ years).

For example:

• Short-term: Build an emergency fund or pay off credit card debt. This could also be preparing for a promotion to increase your earnings. 
• Mid-term: Save for a down payment on a home or fund a career sabbatical. 
• Long-term: Plan for retirement and/or fund a child’s college education.

Once you’ve defined your priorities, work with a financial planner to structure a financial plan that ensures your money is working toward these goals.

5-Year Financial Plan for Women Must Define What You Want From Your Future

Your financial plan should reflect your aspirations, not someone else’s. This means digging deep to define what you actually want from your future. Do you dream of financial independence, early retirement, or a career pivot? Are you prioritizing travel, philanthropy, or investing in a new venture?

At WealthChoice, we believe that no two women are the same—and neither are their financial plans. That’s why we work with you to create a customized 5-year financial plan that’s built around your unique values, goals, and dreams.

Why WealthChoice is Different

At WealthChoice, we don’t use cookie-cutter strategies. Instead, we partner with you to create a financial plan that’s both practical and exciting (because it gets you where you want to go). By focusing on your vision for the next five years, we help you align your finances with your personal and professional goals. Together, we’ll map out a plan that gives you clarity, confidence, and control over your financial future.

_________________

FAQs for Creating a 5 Year Financial Plan for Women Breadwinners that Supports Your Goals 

What is a good 5-year financial goal as women?
A good 5-year financial goal depends on your personal circumstances, but some examples include building a robust emergency fund, paying off debt, saving for a home, starting a business, negotiating a raise or investing for retirement. The key is to ensure your goals are measurable, achievable, and aligned with your values.

How do you plan financially for the year?
Start by setting clear financial goals for the year, such as saving/investing a specific percentage of your income or reducing debt. Create a budget that tracks income and expenses, automate savings and investments, and regularly review your progress. Working with a financial planner for women can help ensure your short-term actions support your long-term vision.

When should I review my 5-year financial plan?

Review your 5-year financial plan at least once a year or whenever you experience a significant life event, such as a job change, marriage, or having children. Regular updates ensure your plan stays aligned with your evolving goals.

Can I create a 5-year financial plan on my own?

While it’s possible to create a plan on your own, working with a financial planner for women can provide expert guidance and customized strategies tailored to your unique circumstances and goals.

Why is future planning important for women?

Women often face unique challenges, like career gaps, caregiving responsibilities, and longer lifespans, which can impact their financial futures. Future planning helps women address these challenges, prioritize their goals, and create financial security.

The post Creating a 5-Year Financial Plan for Women: Where Will You Be in Five Years? appeared first on WealthChoice.

If the mere thought of this sends a little shiver down your spine, please know that you are not alone. Even the most high-flying career women I work with can still struggle with this at times. We tend to be far better at advocating or negotiating for other women than we are for ourselves.

The unavoidable truth is that women typically negotiate for less equity than men, perhaps explaining in part why women in the United States still currently earn about 18% less than their male counterparts, and why the gender gap is still so prevalent.

This is not only due to any lack in negotiation prowess, but also a propensity for women to want higher salaries over more equity, since that is the safer route to take. But long term, this can have damaging implications for wealth accumulation.

By not negotiating for themselves powerfully enough, women routinely leave money on the table – as much as $1 million on average.

But it doesn’t have to be this way. I am passionate about helping successful women like you feel powerful in your professional and financial lives. And a major factor that can guide the trajectory of both, is the power of negotiation and how it impacts remuneration.

Understanding Equity Compensation

Equity compensation (also known as equity grants) refers to non-cash payments offered to employees, which could include stock options, stock appreciation rights, performance shares and restricted stock. Effectively it’s a stock reward given to employees in addition to their usual salary.

Broadly speaking there are three main categories we deal with at WealthChoice:

• Employee Stock Option Plan (ESOP): This provides the option, within a specific period of time, to buy a set quantity of shares in the company if you choose to exercise this right. In my view, the best approach is to exercise your options and sell at the same time, in order to realize the money value and avoid being out of pocket.
• Restricted Stock Units (RSUs): These are based on a vesting schedule, which determines when stock ownership rights are activated (for instance based on the number of service years or performance milestones), a company can grant employees a specific number of shares. The big difference between RSUs and ESOP is that RSUs are usually worth something and you know the value of the position, whereas – with ESOPs – a share price drop before you vest could mean your investment is worthless.
• Employee Share Purchase Plans (ESPP): The company gives employees the chance to buy stock at a discount to fair market value at specific times of the year, often with a cap on the quantity.

Each option gives you the potential to enjoy a slice of ownership of the firm in which you work. But each comes with specific requirements, which may include vesting schedules or meeting performance metrics. Inevitably there are tax considerations too, which should be carefully discussed with your tax professional and your financial advisor.

Why Equity Compensation Is Important for Women Executives

I regard equity compensation as a potential ticket to financial freedom, one which does not distinguish between color and gender, and helps women increase their net worth by participating in the success of the company they have helped to build.

By harvesting the value of equity compensation, women executives are free to invest in other ways, which builds more wealth, more peace of mind, and creates more options for the future.

Figures from 2018 tell us that American women receive about 25% of the equity compensation of men. So when it comes to generating wealth and building professional equality, negotiating equity is critical to closing the gender pay gap and evening out the business playing field.

For women, taking up these grants is also a prized opportunity to claw back some of the financial disadvantage resulting from time away from careers due to family commitments, as well as the need to plan financially for longer lifespans than men and the resultantly higher cost of retirement and health care.

You Are More Valuable than You Know

Offering equity compensation is a proven strategy used to motivate staff, incentivize employees, help to retain and recruit talent, and also as a means of conserving cash (particularly in the start-up phase). So you have a bargaining chip.

A 2022 report from Morgan Stanley noted that, “Nearly one in three decision-makers (32%) said the top goal for offering equity compensation is to attract and retain talent. Nearly half (47%) reported their workforce attrition in 2021 was higher than in 2020.” As a result, “Nearly one in three US decision-makers are looking to expand their equity compensation programs”.

Clearly employees are on board with this approach, with the same report noting that “84% of employees agree that equity compensation is the most effective way to motivate employees and keep them engaged”.

In short, equity compensation has unlimited upside potential. That is, if you approach it with a strategic mindset and a willingness to negotiate.

Negotiation Tactics and Guidance

The full benefit of equity compensation can only be truly achieved if women executives and their advisors consider all the implications upfront. For instance, negotiating the length of your vesting schedule is as important as knowing the market value of the stock and the type of equity grant being offered.

As an example, a long vesting schedule could leave a female executive feeling ‘locked in’ to her current company and limited in her career goals; so a shorter period might offer more flexibility. There are also issues of timing to consider, which will have tax implications and impact cash-flow requirements.

As with all things in life, trade-offs are inevitable, but by planning carefully and preparing a negotiation strategy up front, it is possible to extract maximum value out of this opportunity in order to create value across your financial portfolio.

When I’m presenting to female executives I always encourage them to carefully lay the groundwork upfront when it comes to equity compensation. As a guide, I routinely suggest following these 11 points:

1. Research the role you are negotiating. What is the pay scale for the role? How much equity is typically granted for this role?
2. Companies typically put their best offer up front. Remember that you have the highest amount of leverage to negotiate on the initial offer.
3. Try to negotiate equity with your future boss, rather than a recruiter. The boss is more invested in the position and in you.
4. Lead with love. Start the conversation about how excited you are about the role and your future growth, but make it clear that you want a part of the upside.
5. Take your time to negotiate. Communicate by email to slow the pace.
6. Practice your pitch. Come prepared. Have notes. Practice your pitch in the mirror if it helps.
7. Introduce your competition. Let them know you are speaking with other employers.
8. Know your worth. Have a full and complete picture of what you are leaving behind at your current employer. You want a match, or an improvement.
9. Find easy wins. Take less in salary, but more in equity. Give and take where it matters most to you.
10. Craft a third offer. If the employer gives you two options, create a third yourself.
11. Follow through. Keep the momentum going. Confirm your equity compensation is on the docket for board approval.

Get Yourself a Negotiating Cheerleader

At WealthChoice we want women to be confident enough to advocate for more. So much so that I wrote a book on it! If you would like to discuss the WealthChoice approach to negotiating equity compensation, then I invite you to get in touch.

Whether you are considering the tax and financial planning implications of your equity compensation, or negotiating a new role with new financial opportunities, we’d love to help you take all the money you can off the table!

The post The Benefits of Equity Compensation and How to Negotiate for It appeared first on WealthChoice.

The gender pay gap sees women paid about 82 cents to every dollar earned by a man, according to analysis by the Pew Research Center in 2022. This pervasive divide is driven in part by gender and racial discrimination, workplace harassment, job segregation and a lack of workplace policies that support family caregiving, which is still most often performed by women.

Women who leave work to raise their children face decreased wages when they return. They also face very real biases about being less committed to their work, which can lead to a lack of growth opportunities. Age is another factor that is wrongly synonymous with “worth.” For women aged 45 and over, the pay gap extends to 73 cents for every dollar a man makes at the same age. When looking at race, the gap only grows.

As well as seeing my clients battle with this, I’ve experienced the gender pay gap firsthand.

After repeatedly confronting the unique financial challenges that women executives face, I knew I had to go my own way. WealthChoice was created as a place where I can do the work I love in a way I know will have the most impact, and that I am fairly compensated for.

It seems like the most basic request: to simply be paid the same as men who do the same work as us (or sometimes even less!). And yet a gender wage gap has been recognized in a shocking 94% of occupations, stretching all the way to the C-suite. The gender wage gap continues to permeate our professional lives, impacting the health, wealth and well-being of women across the whole of the US.

So What Can Be Done About the Gender Pay Gap?

My job is to advocate for the betterment of the lives of the women I work with. I take great joy in watching them find empowerment and satisfaction in their financial lives. So it really galls me when I hear of the unequal pay or stifled professional development they experience at work.

While I can’t change the numbers on their paycheck, a major way I can help my clients is by ensuring they use the money they do earn as wisely as possible. And the good news here is that there are certain wealth strategies we can put in place that will cushion their financial plan from the negative impact of the gender pay gap.

I recently took on a new client, a woman who is a top tier executive in a large tech firm. When discussing her income I sadly wasn’t surprised to learn of the pay disparity she experiences, despite her senior position.

We spent a lot of time chatting about how this affects her at work, and the mental and emotional toll it takes when feeling so overlooked and underappreciated by her male peers. Then – with an admitted glimmer of “We’ll show them!” – I set about telling her how I will help her work to negate this wage gap as much as possible through well considered and impactful financial choices.

Pay parity is a hugely important element we factor into our planning processes with our clients at WealthChoice.

After all, the earning power of women dictates our ability to live the life we want – and that is the hallmark of our approach to financial planning and the management of women’s wealth.

Working closely with our clients to understand their dreams, goals, ambitions and areas of personal fulfillment is integral to how we operate. Having a plan to maximize your income is critical for any executive – male or female – but it is a really important consideration for female executives, business owners and professionals who are battling an uneven playing field.

The Importance of Knowing a Woman’s Worth

When you’re not getting paid what you’re worth, you don’t get the opportunity to save as much as you should. That translates to lost incomes, lost social security benefits (which are scaled on your pay), and lost portfolio growth over time.

While we’re all familiar with the fact that women executives are paid less than men for doing the same jobs, a lesser known fact is that the average woman executive leaves a million dollars on the table over the course of her working life, simply by not knowing how much she is worth, or asking for what she deserves.

How is this possible, you ask? It starts with knowing your professional value. Where men generally have no problem asking (or overasking) for what they are worth, women seem instinctively averse to it. Moreover, women executives often don’t know the market value of their work. Women report salary expectations between 3 percent and 32 percent lower than those of men for the same job.

Failing to negotiate plays a significant role in wage disparity. A study from Carnegie Mellon University revealed that 8 times as many men as women graduating with a master’s degree negotiated the starting salary of their first job. The first job sets the tone for your earning potential over your entire career. By not negotiating, a woman stands to lose over $500,000 by age 60.

What Does the Gender Pay Gap Mean for Our Economy?

Gender equality around pay has long been an issue in the US labor market. June this year marked 60 years since the passing of the Equal Pay Act, which “prohibited discrimination on account of sex in the payment of wages”.

Yet the situation in the US is still only slightly better than the world average – where most women are paid around 20% less than men – but 18% less can still make a significant impact to a well-structured financial plan. This has a persistently negative impact on the American economy as a whole.

According to Moody’s Analytics, we can expect to see an additional $7 trillion injected into the global economy – that is about 7% – if the pay gap between men and women is narrowed more rapidly. The problem is, at the current rate, the gender pay gap will only be closed in about 132 years.

However, if women in the US were to receive equal pay, then it is anticipated that this would cut poverty among working women and add in the region of $482 billion to the American economy.

For example, in the state of California, where we have a number of clients, pay equality would equate to a significant economic boost. “If women were paid the same as comparable men in California, the state’s working women would have earned $51.8 billion more dollars, an earnings increase that, by itself, is greater than the entire economy of South Dakota ($45.9 billion)”, wrote the authors of briefing paper for The Institute for Women’s Policy Research, Heidi Hartmann, Jeff Hayes and Jennifer Clark.

How Does This Impact Women’s ‘Wealth Gap’?

As I wrote in my book, Corner Office Choices, no matter what industry you work in, being a woman in that industry will bring unique challenges that men don’t have to deal with. The response isn’t to resign ourselves, nor is it to get overly caught up in fighting for systemic change. Instead, the most constructive approach is to identify what those challenges are, and get the resources you need to overcome them.

Over the past two decades, very little has been done to fundamentally shift the status quo. This means more women play a juggling act with their time and their money, but with fewer opportunities to invest more into their own financial futures.

Just recently, the Center for American Progress think-tank released a paper determining that persistent gender pay gaps had cost American women $61 trillion in financial resources since 1967, when the Equal Pay Act was signed. While all women are impacted, Latina and Black women workers continue to be worse off.

The personal upshot of this is that women continue to be caught in a ‘wealth gap’, unable to catch up with their male counterparts. As Rose Khattar, Director of Economic Analysis at the Center for American Progress, said about the report’s findings: “That’s lost wages that could have been injected into the economy in the form of consumer spending. That’s wages that women could have used in terms of investments to build up their wealth.”

Just consider these three personal impacts that the wealth gap might be having on your own financial planning:

• Retiring in Style: The long-term implications of the gender pay gap are particularly noticeable when you start drilling down into the retirement income women can expect versus men. Since earnings over the course of a woman’s life are below that of a man, they receive less in pensions and Social Security which means that when it comes time to retire they can expect to have 70% of a man’s retirement income. Worryingly, many women go into retirement with less income than they had when they were working; making it impossible to maintain their standard of living.
• Emergency Fund Savings: As a female breadwinner, or as a working woman contributing to the family finances, some believe it is important for women to save even more into their emergency funds. This is, in part, due to the household demands on women and their more precarious standing in the labor market. And yet they have one hand tied behind their backs as they build up these savings.
• Investing in Stocks: Earlier this year a report by BNY Mellon noted that if women invested in the stock market at the same rate as men, there would be – at very least – an extra $3.22 trillion in assets under management. The gender pay gap was just one of the factors behind this imbalance highlighted in the report, the others being financial confidence, education around investing and less disposable income (which is where the pay gap really bites).

The Benefit of Women-Focused Advisory Firms

Many of the issues impacting how women accumulate wealth can be linked to personal preferences for investing – since traditionally women tend to be more conservative and have lower risk tolerances – but also because the financial world is geared towards men and, by and large, continues to be male dominated.

However, having a female financial advisor in your corner also makes a big difference. After all, women have unique financial needs and often find themselves handed cookie-cutter advice that might suit a man, rather than benefiting from crafted solutions that help them live their best life.

Women want more than just accepting what is pushed across the table at them, they value honesty and transparency, relationships built on trust and access to investing information that aligns with their personal values. Many women find they can get this by using a female advisor.

It’s important for women executives to recognize that no matter where they start, there’s only so much time they have left, and only so much money they can make within that time frame. It is vital to understand the long term implications of how they choose to use their resources.

My job is to help women executives understand that their current way of life is a choice, and to help them see what other choices are available to them. What do they need for their own life? What does quality of life mean to them? And what is involved in creating it?

At WealthChoice we tailor-make our clients a financial plan that not only takes the issue of gender pay disparities into account, but seeks ways to counter these issues and provide sustained financial stability and growth.

Please do get in touch if we can help you navigate any gender pay gap issues you’re experiencing. We stand as your advocate, support system, and ultimate cheerleader as you head to work every day and learn to bridge the gaping wage divide until the day eventually comes when we no longer have to. Until then, we’re here for you.

The post Women Executives and the Gender Pay Gap. What Can We Do? appeared first on WealthChoice.

Like so many working women before her, this woman was feeling overwhelmed by the demands of a professional career and a family. She was finding it challenging to manage intense full-time work while giving her spouse and young children the time they needed. She felt trapped, spread too thin and overawed by the demands of juggling almost every aspect of her life.

I was extremely grateful for the feedback I gained from this interaction, specifically because I know from past experience that the WealthChoice way can – and will – help her manage all these touchpoints.

For many executive women, life is a day-to-day tightrope walk while juggling career and family. Many of these women have little time to live life on their terms, let alone have some sort of financial strategy for the future they’d like to enjoy.

Fortunately, my brand of bespoke financial planning, which considers all aspects of a woman’s working and personal life, breaks away from the traditional one-size-fits-all model of financial planning to create holistic solutions that support busy breadwinner businesswomen and enable them to live their best lives.

Starting a Family Takes Precision Planning

The process starts with an open and honest conversation, an in-depth examination of your financial health, your goals and your specific personal and professional challenges. From there, we craft a life plan that works – for you!

In my experience, working women – and particularly breadwinner businesswomen – should begin to plan financially from the moment they start thinking about starting a family. This includes putting in place a plan for job flexibility and understanding the maternity leave options at their company.

In particular, it’s important to focus on the following:

• Know Your Maternity Leave Income Coverage: Questions you need to be asking yourself include: How long will I receive a salary from my company? Will it be 100% or a portion? Does my state provide disability for maternity leave? How will my income be impacted with a child? Will I be able to cover the increase in expenses if my income decreases?
• Reassess Your Budget: You’ll need to consider new budgetary line-items such as childcare, equipping your home for a baby, as well as clothes, accessories and food. Plus it’s critically important to decide when to start contributing to a college fund (I always recommend from the moment your child is born, so you get the full benefit of growth over time).
• Increase Your Insurance Cover: For every new parent it is an imperative to have life insurance. If you already have life insurance, then it’s important to review how much you have and assess if it is sufficient. Not only should you consider the medical costs associated with having a child, from prenatal appointments to childbirth classes, you should also consider the cost of insurance once you’ve added your child to your plan.
• Build Your Emergency Fund: Since your family is expanding it’s an excellent idea to put more into your emergency fund for those just-in-case moments. As a rule of thumb, it is good practice to have an emergency fund with at least six months of fixed expenses in cash if you are single, and three months if you have a working spouse or partner.
• Update Your Will: If you don’t already have a Will, then it’s important to have one in place before your baby is born. This document will ensure that your child inherits your assets in the event of your death and, if they are a minor, clearly states who will care for your child.
• Consider Upcoming Expenses: If your current home is small, then you’ll also need to factor in the possibility of moving house or investing in a bigger property as your child grows up. When you do start looking, remember that considerations like proximity to good schools and nurseries will now become really important.

On a more personal note, I resonated with this series of positive and affirming tips from life purpose coach Erica Carrico. Stop trying to be perfect, she says. Take time out to have fun, and to be open to help – be it a daycare or even a family organizer. Carrico also affirms my view that filling your own cup first is the best gift you can give to your family; it helps to keep you focused, positive and in the moment.

Advice for Entrepreneurs and Tech Startup Execs

A few years ago I read an article in Forbes magazine in which the writer suggested that as a female entrepreneur and mother, women should “accept that there is no such things a ‘balance’.”

For any breadwinner businesswomen at the helm of an organization – and especially those steering highly competitive tech start-ups – I would argue that balance comes naturally if you focus on prioritizing. This only works if you take the time to decide what is important – including you! – and tailoring your schedule around those commitments.

If, for instance, attending your child’s baseball games is a non-negotiable, then block out the time in your diary – just as you would with a client meeting. Turn off your phone, and give your full attention to the little person on the pitcher’s mound.

As Forbes contributor Nona Djavid wrote: “I do not check my email or Slack messages, and I focus on my current situation. I want him to remember that Mom showed up to every lesson to cheer him on and watch him improve.”

As a personal note, I still remember when my daughter told me that I never listened to her. It stung terribly, and I decided then and there to be more present. Now, I make sure my attention is 100% focused on my children when I’m with them or speaking with them from across the country.

Considerations for Women Lawyers

While all careers require heavy time commitments, a special word needs to go out to breadwinner businesswomen working in the notoriously demanding legal profession, where many regularly work more than 60 hours a week and a single week of vacation a year is not uncommon.

In a 2023 Law360 Pulse survey 31% of female lawyers said their work-life balance had deteriorated in the past year (compared with 18% of male lawyers) and 46% reported feeling continual stress (compared to 28% of men polled).

Fortunately mother-friendly legal firms are emerging across the US; practices that are turning their backs on traditionally glass ceilings and finding ways to support female lawyers through mentorship and career guidance. Some of the advice shared by female lawyers who find themselves juggling these very commitments, includes supporting one another, being adaptable, communicating your needs clearly, planning and prioritizing.

Even for women lawyers who choose to take on a part-time position to help prioritize family time, the unpredictability of the profession means that long hours are inevitable. Which means that, for any woman in the legal profession, full-time childcare is inevitable. One of the positive results of the 2020 pandemic was the ability for many in the legal field to have some flexibility around their work hours and location, so where possible it is advisable to build on those gains..

Remember: Outsourcing Is OK

In a previous blog I wrote – Female Breadwinners: The Challenges of Doing It All – I shared some eye-opening facts about women in the modern American workplace. For instance, that 41% of American mothers are the “sole or primary breadwinners for their families” who earn at least half of their household’s total income.

Not only are women often breadwinners at home, they are increasingly in senior positions in the office. This means that women need help. And they shouldn’t be afraid to ask for it.

I’ve had many conversations with breadwinner businesswomen who complain of a lack of time, but still insist on packing school lunches, cleaning and doing laundry. If you are dealing with intense hours and heavy work pressure then something has to give. If you push yourself to be all things to all people, that something to snap will be you.

By outsourcing to a housekeeper, or enrolling your child at daycare or with a trusted nanny, you are ensuring that you offer your family the best version of yourself when you walk through the door.

However, with the rising cost of childcare it is critically important to plan upfront for the costs associated with childcare, as well as the projected increases over the coming years. Fortune magazine puts the yearly cost of childcare in the US at $14,117, a figure that has accelerated by more than 41% in recent years. As a result, I work closely with my clients to ensure that budgets are in place to prioritize childcare, preschool and even summer day camps.

We also take the time to weigh up the IRS tax credit of up to $6,000 a year for two or more children versus making use of a Dependent Care Flexible Spending Account (FSA). Contributions to a Dependent Care FSA are capped at a pre-tax limit of $5,000 per calendar year (per couple), and these funds can be used to cover eligible dependent care services, like daycare. Since the FSA is only available to employees, it’s important to see which option best suits your situation.

What Does Your Ideal Life Look Like?

Before I took the plunge and started WealthChoice I had to ask myself the question: What does my ideal life look like? Today I challenge my breadwinner businesswomen clients to answer this for themselves, then to work with me to design a financial plan that supports her dreams and ambitions, and allows her to live life on her terms.

My approach is centered on choices – from the way you spend your money to the decisions you make around childcare, promotions and career decisions. Making the right choices for you is both freeing and empowering. If you’d like to work with me to help give power to your choices, get in touch and let’s chat.

The post For Breadwinner Businesswomen, Starting a Family Takes Precision Planning appeared first on WealthChoice.

On a daily basis, as I interact with women executives at the pinnacle of their careers, I encounter accomplished, impressive, intelligent and driven high earners; many of whom are the financial breadwinners in their families.

To the casual observer, these women certainly seem to have it all. However, they are also frequently anxious, tired, and overwhelmed. They have too much on their plates, not enough time to deal with it all, and are embarrassed to ask for help. Despite how hard they work, many are not living their best lives right now. And they do not realize they are not the only ones in this place.

Finding Balance as Female Breadwinners

According to the US Bureau of Labor Statistics, in 2018 nearly 30% of American wives in heterosexual dual-income marriages earned more than their husbands. That’s up from about 18% in 1987 and just 6% in 1960.

Not only that, according to data from 2017, 41% of mothers “were the sole or primary breadwinners for their families, earning at least half of their total household income”. This is increasingly the case among high-performing women executives who are often not only the sole financial provider for their families but still carry a disproportionate burden when it comes to household and family responsibilities.

Hardly surprisingly, research shows that despite the impressive financial gains women have made in recent decades, this does not always translate into greater life satisfaction. The Institute for Family Studies (IFS), which has explored the phenomenon of the ‘breadwinner mom’, singles out traditional gender norms as a possible reason.

After all, many of the expectations that women are always readily available to their families and spouses remain stubbornly in force, despite the increased financial contribution women are also expected to make.

These days, as IFS researcher Wendy Wang points out and as any mutually-supportive couple will know, “sharing household chores trumps money when it comes to a successful marriage”.
But this is only one aspect of a delicate and challenging balancing act facing today’s successful woman.

The Challenge of Being Everything to Everyone

In my experience, even when help at home is at hand, the constant demands on high-earning female executives and professionals inevitably pushes the woman herself further and further down the list of priorities.

The solution that is so often advised in such cases is to ‘find balance’ or ‘make time for you’. Both of which can be a challenge for any woman already juggling high levels of responsibility and stress.

Rather than loading more on the shoulders of my clients, I prefer to offer a helping hand. This is the very reason I started WealthChoice, to offer top-earning women a goal-focused approach to financial planning. Our role is to offer real value by taking things off the busy breadwinner’s plate, and by helping each woman to prioritize her time and her goals.

We start this process by getting to know each other. In practice, this means answering questions about priorities, hopes and dreams for the future, as well as personal ambitions and goals. For instance:

• How in tune are you with your dreams? Have you written them down?
• Do you have a network of like-minded women around you to offer support?
• Are you putting your dreams on hold today because you are overly focused on the future?
• Do you have a financial strategy in place which is aligned to your current and future ambitions?
• Have you discussed your personal and financial goals with your spouse or partner?
• Does stress overwhelm you to the point where you feel overcome with decision paralysis?

Prioritize You!

Only when you start to give expression to these questions, and then marry your expectations with mindful professional, personal and financial goals, will you be close to ‘having it all’. And, even then, balance is a constant and evolving process that requires frequent resetting and rethinking of your priorities.

For instance, in the past I took on more board roles and worked with many non-profits, but at this stage of my life I prefer to allocate ‘me time’ to traveling and being with family and friends. I adore cooking and entertaining, and for my own sanity I make time to play golf and to dabble in pickleball. Since my four kids are scattered all over the country, in 2022 we all set off to Paris. At least once a year we try to go away as a family.

As you might have guessed, I am at my happiest when I’m spending time with my family, so I am conscious of ensuring that my financial – and time management – decisions support this overarching goal. This sometimes requires making hard choices, but because the goal is so important to me I’ll move mountains to make these moments happen.

This deep personal awareness also makes it easier for me to empathize with the needs and wishes of my clients. I don’t blink when a top female lawyer tells me she wants to book an extensive holiday, take time off to volunteer abroad or fulfill a dream of climbing the world’s highest mountains. Why? Because I know what makes her tick, and I know that through careful financial planning WealthChoice can help to make her dreams come true.

Find Your Support Team

When I sit down with client who are overwhelmed with the responsibility of being female breadwinners but are aching for personal fulfillment, I recommend these simple steps:

• Plan and analyze – Conduct a thorough analysis of all aspects of your life, including your financial commitments and see where you can put some of your hard-earned cash to work for your goals and dreams.
• Spend time getting to know yourself – Take a deep dive into what makes you tick and what makes you happy. If you are going to support others, make sure to reward yourself too.
• Commit to your strategy – This means tracking your progress, patting yourself on the back and making changes as and when necessary.
• Embrace change – Sometimes we have to be open to doing things differently; this is often the only way to unlock a better life.
• Speak to a professional – No matter how successful you are, there are times when having an expert in your corner can only unlock additional benefits.

As a successful business owner and breadwinner myself, I truly understand the myriad demands you juggle every day. That’s why I’m passionate about helping my clients build a life of balance, with room for the things that bring them joy. Please do reach out, and let WealthChoice help you breathe a little more easily.

The post Female Breadwinners: The Challenges of Doing It All appeared first on WealthChoice.

Whether we take time out to explore the many wonders right here on our doorstep in the USA, or explore destinations further afield, travel is the perfect way to step back and re-energize. I speak from experience.

For me, travel opens my mind and gifts me precious time with my family. I plan for a week abroad each year, usually strategically taken around Thanksgiving when my workload is slightly lighter and I can feel comfortable being away from the office for a while.

The tips I share when it comes to travel are, therefore, grounded in my insights as a financial advisor, but supported by personal experience as a busy professional and business owner.

“Travel is the only thing you buy that makes you richer.”
– Anonymous

The Joy of Getting Away from It All

Clearly I am not alone in my passion for travel and enjoying unique places and experiences. According to a 2022 luxury travel market report, an increasing number of wealthy Americans are eyeing bespoke international travel in 2023.

In addition, the report revealed that most wealthy travelers prefer spending on experiences as opposed to goods. This is certainly true of WealthChoice clients, most of whom share the annual goal of travel.

Some of my clients spend more on this passion than others, but based on our in-depth discussions and interactions, and irrespective of the destination in question, getting away from day-to-day demands is a significant priority.

For some, it’s just about having new adventures, experiencing the world on their terms, and enjoying a change of scenery. For others, it’s the health benefits of taking a vacation that inspires them to pre-book time in their schedules each year to get away.

Recharge and Reset

For busy female executives, the health benefits of taking a break are becoming increasingly important. This is particularly true of women working in high-stress roles or in male-dominated sectors, such as tech or the law.

For women fighting battles on all fronts, a vacation can be a chance to relax, reset and reflect. Time in a new environment, away from daily challenges, is often a precious moment to clear the mind and consider new ways of working, new areas for personal development, and opportunities to grow.

Reinvigorated after taking time out, it is quite common for our clients to return to work with a fresh perspective on what is important. As Leonardo da Vinci, the great polymath, once observed: “Every now and then go away, have a little relaxation, for when you come back to your work your judgment will be surer.”

Since travel ranks so high on our clients’ list of personal priorities, it is an important focus area for me and my team. Believe it or not, a financial advisor like WealthChoice has a vital role to play in working with you to prepare for travel (particularly the international, cross-border variety), by providing both financial guidance and ensuring you can go away with the peace of mind that, while you recharge, your financial health is in safe and dedicated hands.

Have Budget, Will Travel

No matter the time frame, be it the standard week-long vacation, or a really indulgent two-week adventure, my clients choose to travel all over the world. Yes, they see travel as a luxury, but it’s one that I encourage them to plan for both financially and logistically.

Even for those in high-earning positions, it is always important to factor in the cost of taking time off – both financially and in terms of personal and work commitments. This is particularly true in demanding professions like law or if you are self-employed or run your own business. Whether it’s the length of your stay, your destination, what kind of accommodation you’re seeking, transport costs or how much you plan to shop while you’re away, I know from experience that it pays to be prepared.

Often travel preparation can be done with the help of your financial advisor who can assist with determining if and how your trip will impact your long-term financial goals and work this into your financial plan. They can also provide guidance on the following:

Let’s Talk Insurance

When visiting distant lands, anything can happen. That’s why trip cancellation insurance is an important consideration. Many of the best travel credit cards also offer some kind of protection for travelers, from baggage insurance to trip delay insurance. Another great resource to compare and buy travel insurance is www.squaremouth.com.

It’s also best to speak to your health care insurance provider about your travels to establish whether they will cover any possible medical costs abroad or if they sell temporary plans. Bear in mind, for instance, that Medicare cover generally doesn’t pay for care in another country, but a Medicare tie-in plan could cover costs incurred abroad. And don’t forget to take all your inoculations, especially if you are traveling to regions such as Africa or Asia.

What Does Estate Planning Have to Do with Travel?

If you’ve been putting off creating a Will or updating the one you have, it’s best to make the necessary arrangements before you travel. The peace of mind that comes with knowing your estate plan is in order ensures you can focus on the business of truly unwinding.

Remember to Combine Cash and Cards

It’s best to use a combination of cards and cash when you’re traveling, especially in Europe. Remember that cash is king so take a fair amount with you in the currency of the country to which you’re traveling.

When selecting a travel card, look for one that has no foreign transaction fees and enables you to seamlessly cash in rewards for travel. Some travel cards also offer a bonus system where you can earn rewards for travel-related purchases.

Investing in a new credit card a few months before your departure may also come with sign-up bonuses that facilitate cheaper travel or high-spend rewards. What’s more, it’s advisable to notify your credit card company of your travel dates so that they don’t block your transactions if they suspect suspicious activity.

High-End Considerations

While the financial and planning advice shared above applies to anyone planning a vacation – and particularly one outside of the USA – for high-earners a comprehensive travel plan might also need to consider making provision for the following:

• Private aviation costs: Since the 2020-2021 pandemic demand for private travel options, such as private jets and even renting out luxury yachts for the summer, has exploded. There are options available for those who chose to travel in style, be it leasing a private aircraft, to fractional ownership of a jet, or even loyalty programs courtesy of well-known aviation companies.
• Exploring bespoke, ‘bucket-list’ experiences: Whether it’s a luxury safari in Kenya or South Africa, leasing a hilltop villa on the Mediterranean, cruising around remote island in Indonesia or along the coast of Croatia, today’s traveler is looking to unlock unique and luxurious possibilities. Vacations of this variety will invariably come with a higher price tag, but if you plan well in advance for such ‘bucket-list’ breaks, they can be magical and even life changing.
• Emerging eco-travel options: A recent report by Virtuoso tells us that some 82 percent of travelers now want to travel more responsibly, and are seeking out more remote and unspoiled locations. They want to engage with local communities and learn about new cultures. Planning vacations of this type, complexity and often distance location, invariably required the services of a travel specialist. They should be treated as once-in-a-lifetime investments.

Live a Life Rich in Experience

Despite the financial outlay from these luxurious vacations, I am always at pains to affirm the travel choices my clients make, and encourage them to reward themselves appropriately for the high-pressure roles they carry off with such grace.

As I wrote in my book, Corner Office Choices: The Executive Woman’s Guide to Financial Freedom: “The first big step in financial planning is examining your passions and pursuits.” Passions are the interests you feel deeply about, such as travel, while pursuits are the particular goals and endeavors to which you are committed.

Without passion, and without reward, what are you working for?

Travel is, for me, an essential experience that both enriches my life and broadens my horizons. It feeds my passion for new, exciting and bespoke experiences. It represents quality time with family and an opportunity to recharge my batteries.

As a result, I find it extremely satisfying to help my clients make their travel dreams come true. Whatever your financial hopes, dreams and concerns when it comes to travel, remember: I’m just a call away.

The post When Travel Calls, Answer with Sound Financial Planning appeared first on WealthChoice.

I would suggest that rather than a philosopher, taking the stress out of tax season requires a dedicated team comprising your financial advisor and your Certified Public Accountant (CPA), who have the requisite skills and network to create an effective tax strategy for women business owners, professionals, lawyers and technology executives.

It’s one thing knowing the rules and regulations you need to adhere to when filling out your tax return, but for a busy professional it is almost impossible to keep track of tax law changes, as well as the specific implications these might have for your tax situation.

Seeking Expert Guidance

At WealthChoice we are fully versed in the most recent tax law changes and will ensure you are taking advantage of all options to lower taxes. Since our approach is personal and hands-on, we touch base regularly with our clients throughout the year, asking pertinent questions such as:

• Have your stock awards vested?
• Have you paid the estimated taxes on your business?
• Is your withholding on track?

A case in point is the recent passing of the Secure Act 2.0 by Congress. The Secure Act 2.0 is an important piece of legislation that has real implications for retirement and wealth planning.

While the legislation makes provision for accessing retirement funds during tough times, some of the key points which are particularly pertinent to our clients, and which may impact tax filing in the coming years, include:

• The increase in the age for Required Minimum Distributions (RMDs) to 73, rising to 75 in 2033.
• An increase of the annual catch-up contribution limit for individuals aged 60 to 64 to $10,000 starting in 2024 – notably this will be indexed for inflation in the coming years.
• For those 60-63, 401(k) catch up rises by 150 per cent of the normal catch up. For 2023 the catch up is $7,500.
• From 2024, individuals earning more than $145,000 and contributing to a 401(k) can only make catch-up contributions into a Roth account. This will affect taxable income, since Roth contributions are post-fax.

Bearing these changes in mind, it has never been more important to have a team of experts on hand who can offer a holistic approach to wealth management.

To help our clients navigate the complexity of tax season, WealthChoice works with CPAs who prepare and file tax returns on behalf of our clients – this close collaboration with your CPA helps us to avoid any ugly surprises from the previous year, allowing us to take appropriate steps before it’s too late to correct issues with your prior tax year.

This is a tight-knit relationship which yields discernable positives for our clients; specifically lowering the amount of taxes you pay so you get to keep and enjoy more of what you make. It means continuity of strategy and oversight. And it means that your financial advisor can include tax implications and opportunities in their helicopter view of your financial goals and aspirations.

Your Tax Filing Agenda

Having experts in your corner does not, of course, mean that you should abdicate all responsibility. It’s always advisable to stay informed about tax developments, if only to ensure that you are always asking the right questions and setting the agenda for your own tax strategy.

When I sit down with clients, we run through the issues outlined below. Then we work with your CPA to create an effective action plan that covers all the bases.

• Run through any changes and laws that might impact your tax return.
• Discuss ways in which to minimize your tax bill by making the most of tax deductions and tax credits.
• Talk about tax-advantaged (ether tax-deferred or tax-exempt) investments options and how to get the most out of them; from 401(k) plans to traditional IRAs, Roth IRAs and Roth 401(k)s, Health Saving Accounts and even Municipal Bonds.
• Discuss any life changes that may have taken place over the year, and what the implications are for your tax situation.
• Take the time to refine and refresh your existing tax strategy for optimal effectiveness.
• Discuss some of the new digital technologies available to help automate data entry and document collection.

Another important point to interrogate is your tax status. I stressed this fact in Corner Office Choices: The Executive Woman’s Guide to Financial Freedom, and it remains a critical point to cover during such discussions – particularly for women.

While your filing status will invariably change as your life circumstances change, there are very real impacts for women who, for instance, outlive their spouse and change their tax status to ‘single’. Utilizing the best personal tax filing status is a critically important consideration for reducing tax liabilities; so, I urge you to put it on the agenda this tax year.

The Ins and Outs of the 2023 Tax Season

Before delving into some practical tips for planning a stress-free tax season, let’s just recap the new deduction and credit amounts, and the primary deadlines, that you need to make note of:

• In 2023, tax filing deadline for federal tax returns and payments is April 18.
• If you apply for an extension, your extended filing deadline is October 16.
• The standard deduction for 2023 was increased to $13,850 from $12,950 in 2022 for single filers and married individuals filing separately.
• For married couples filing jointly, the standard deduction rose to $27,700 from $25,900 previously.
• The deadline to fund an IRA is your tax filing deadline (April or October).
• The deadline to make an employer contribution to your Solo 401k is your filing date.
• The deadline to have contributed to your 401(k) as an employee was December 31 of the previous year, but you can still take the other steps above to lower taxable income at this point.

Of course, in many cases it makes more sense to itemize deductions rather than taking the standard deduction. This approach allows you to lower your tax burden by deducting items like charitable donations, medical and dental expenses above 7.5% of adjusted gross income, state and local income or sales tax up to $10,000, and mortgage interest on loans up to $750,000 for married couples, or $375,000 for singles. You can also add investment interest and gambling losses to your itemized deductions.

However, as I explain in Corner Office Choices, it is extremely important to discuss with your CPA whether itemized deductions will make a material impact to your tax filing. This approach takes more effort and planning, but for individuals and couples whose expenses exceed the standard deduction, it does have advantages.

Stress-Busting Tax Planning Tips and Dates to Diarize

Planning, keeping abreast of paperwork, and remembering key days in the tax filing process will go a long way to ensuring that you have a relatively stress-free experience in the lead up to tax filing time.

Ideally, tax should be approached as an ongoing and month-to-month area of focus. Over the course of the year, be sure to keep a note in your tax folder of major life events that could have an impact on your tax situation, this might include getting married or divorced, or the death of a parent, a big promotion at work, buying a house (or even a holiday home or a yacht), and even suffering losses as a result of a flood or fire at your home.

It also takes into account business expenses, a liquidity event (such as your company going public), vesting stock awards or receiving a big bonus. It is important to pass this information onto your financial advisor and your tax specialist.

January is usually a big month for annual tax preparations, so I would suggest starting the new year by collecting all necessary documents, receipts and information – this might include proof of charitable donations, your employer’s W-2 withholding form and your W-4 withholding certificate.

If you’ve had stock awards vest, look out for 1099 forms from your brokerage accounts. For independent contractors or freelancers, a 1099 or W-9 form would be required, this is also often the case for female lawyers, many of whom practice as solo 1099 lawyers or in small firms of less than 10 attorneys. Law firm partners will require a K-1.

Most CPAs will want to receive your tax documents some time in February, if your goal is to file in April.

An Expert Helping Hand

I typically check in with clients in June to go through withholding, in order to make sure they are on track given their income year to date.

For clients with vesting stock awards, I encourage them to contact me throughout the year – each time they vest – so we can ensure enough tax is withheld in a savings account dedicated to taxes. We do this because, for those in the higher tax bracket, typically only 22% is withheld.

If the mere thought of working through this tax ‘to-do’ list has your blood pressure racing, then I invite you to get in touch and make a time to join me for a coffee or a glass of wine so, together, we can put a strategy in place to streamline your tax filing experience.

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