For many high-earning women, retiring in their 50s or 60s is an achievable goal. However, preparing for a lifetime of financial independence requires a plan and strategy that reflects your lifestyle, potential longevity, and future needs. The earlier you clarify your numbers and your options, the more flexibility and confidence you’ll have as you approach this next chapter.

Here are a few important considerations to make as retirement starts coming into view.

How Much Will You Need to Retire in Your 50s or 60s?

There is no “magic number” that guarantees a comfortable retirement at any age. Rather, you’ll need to estimate your anticipated expenses based on your spending patterns, lifestyle expectations, healthcare needs, and the kind of flexibility you want in your later years.

You may find it helpful to estimate your anticipated retirement expenses based on your current lifestyle. From there, try applying general planning guidelines to serve as a starting point. For example, the 4% rule suggests it’s safe to withdraw roughly 4% of your portfolio annually, while the 25x rule recommends multiplying your annual expenses by 25. Keep in mind these are not hard and fast retirement rules that work for everyone, but they do offer a useful baseline for early modeling.

If you’re planning to retire before “traditional” retirement age (say 65), you’ll also want to account for timing gaps around benefits. For example, you won’t be eligible for Medicare until age 65, meaning you may need to pay more for marketplace healthcare coverage or rethink your retirement timeline to account for coverage needs. You also won’t have access to Social Security until age 62, though benefits increase monthly if you wait until age 70 to start collecting. Remember: it pays to wait until at least your full retirement age to take Social Security to avoid reducing your monthly benefit! Some employer plans and pensions have age-based access rules to account for as well.

The important takeaway here is to build a retirement timeline that accounts for your existing resources, what you’ll have access to later, and what potential hurdles may require additional planning.

Take Advantage of Catch-Up Contributions

Beginning at age 50, you’re allowed to contribute beyond the standard annual limits to certain retirement accounts, including 401(k)s and IRAs.

Having the opportunity to make extra tax-advantaged retirement savings can be especially valuable for women who paused or reduced contributions earlier in their careers (say, if they took time out of work to caregive or otherwise support their family). Catch-up provisions can help women close those gaps at a time when their income is often at its highest.

Contribution limits are adjusted periodically for inflation, and enhanced catch-up provisions now apply to certain workers in their early 60s. In 2026, the normal catch-up contribution is $8,000, which brings the annual contribution limit up to $32,500. However, for those who are between the ages of 60 and 63, the higher catch-up contribution limit is $11,250 (totaling $35,750).¹ 

The IRS has also implemented new requirements (starting January 2026) for high earners making catch-up contributions. Starting this year, if your wages from the prior year exceeded $150,000, your catch-up contributions will need to be made on a Roth basis. 

Consider if a Coast FIRE Retirement Works for You

There is no one way to do retirement, and the “traditional” route might not be for you. For some women, gradually phasing into retirement offers a better balance of purpose, income, and flexibility. If you’ve been a diligent saver and investor, you may be able to explore other options for transitioning to retirement, say through a Coast FIRE strategy.

You achieve a Coast FIRE by reaching a point where your invested assets, if left to grow without additional contributions, are projected to fund your future retirement. Once you reach that milestone, you may be able to “coast” by covering your current living expenses through lighter or more flexible work, without needing to continue aggressive retirement savings.

This approach can work well for women with strong early savings habits, substantial portfolios, or lower projected retirement spending needs. If you’re interested in transitioning professionally towards consulting, board work, part-time leadership roles, or passion-driven projects, “coasting” to retirement may make the most sense. 

Just keep in mind, this method doesn’t work for everyone. If your retirement projections are tight, your spending needs are high, or market volatility would significantly disrupt your plan, a Coast FIRE path may introduce too much risk. 

Reassess Risk Often

When you were still decades away from retirement, you had plenty of time to recover from major market downturns, recessions, and general volatility. But as the timeline towards financial independence shortens, your ability to handle risk drops as well.

The closer you come to needing to withdraw from your portfolio and savings, the more risk-aware you need to be. Gradually, your priorities will shift from long-term, growth-focused investing to preservation and longevity.

One of the biggest risks to manage in this phase is called “sequence of returns” risk. This refers to the danger of experiencing poor market returns in the early years of retirement while simultaneously taking withdrawals. Losses combined with distributions can put disproportionate pressure on a portfolio and reduce its long-term sustainability. You can help reduce this risk by adjusting your portfolio’s asset allocation, building cash reserves, and creating a withdrawal strategy.

Another Tip? Build Your Retirement Dream Team

Your retirement is too important to manage alone, especially when you’re already balancing competing priorities at home and in the office. Working with a knowledgeable advisory team can help you model scenarios, stress-test your plan, and adjust as your goals evolve.

If you’d like to learn more about preparing for your next phase, we encourage you to schedule a conversation with our team today. Together, we’ll explore opportunities to build a retirement plan around your values, priorities, and goals for the future.

^Sources:

^{1www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500}

FAQs:

1. ^{How much do I need to retire in my 50s or 60s?
   There’s no universal “magic number.” Your retirement needs depend on your spending patterns, lifestyle expectations, healthcare costs, and desired flexibility. General guidelines like the 4% rule (withdrawing 4% of your portfolio annually) or the 25x rule (multiplying annual expenses by 25) can serve as a starting point, but your plan should reflect your unique situation and goals.}
   
2. ^{What benefits should I plan around if I retire before 65?
   If you retire before traditional retirement age, you’ll need to account for timing gaps. You won’t be eligible for Medicare until age 65, which means budgeting for marketplace health coverage. Social Security isn’t available until age 62, though your benefit increases if you wait until 70. We typically don’t advise that retirees take Social Security before their full retirement age due to the reduced benefits that come with taking your benefit early. Some employer plans and pensions also have age-based access rules to factor into your timeline.}
   
3. ^{What is Coast FIRE, and is it right for me?
   Coast FIRE is a retirement strategy where you’ve saved enough that your investments, left to grow without additional contributions, are projected to fund your future retirement. Once you reach that point, you can “coast” by covering current expenses through lighter or more flexible work. This approach works well for women with strong early savings habits who want to transition toward consulting, board work, or passion projects. However, if your projections are tight or your spending needs are high, it may introduce too much risk.}

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You’re not alone, and you have every right to feel both proud of your successes and drained from the day-to-day pressures. Executive burnout is real, and for many high-achieving women, it often leads to feelings of exhaustion, guilt, and uncertainty. There’s certainly a sense of irony in achieving such significant professional and financial milestones, only to realize you’ve built wealth without the freedom to enjoy it.

The good news? If you’ve managed your career and finances wisely, early retirement may be more within reach than you realize. Let’s explore what that could look like, and how to take meaningful next steps.

Early Retirement vs. Financial Independence

First, let’s define “early retirement.” For most executives, early retirement often means stepping away sometime in your late 40s or 50s, ahead of the traditional retirement age of 65.

If you aren’t familiar, this idea of “Financial Independence, Retire Early” (or FIRE) has gained popularity in the last decade or so.

To some women, achieving FIRE looks like transitioning into consulting, coaching, or part-time advisory roles. Others take extended sabbaticals, start businesses, or focus on philanthropy. The common thread is financial independence—meaning you have enough resources to choose how you spend your time, without needing a paycheck to sustain your lifestyle.

Is Early Retirement Possible?

Before mapping out an early exit strategy, get clear on what’s financially possible. A realistic plan starts with understanding your current financial picture. Working with an advisor, review how much you have, how much you spend on average, and what you’ll need to maintain the life you want early on in retirement (before you have access to retirement accounts).

Review Your Current Spending and Savings

Begin with a thorough review of your expenses. It sounds tedious, but gaining a realistic perspective of your spending habits is essential for building a sustainable plan. Go through your bank and credit card statements and calculate what you actually spend each month. This should include fixed costs like housing, as well as discretionary spending (dining out, travel, personal care, etc.).

Next, consider what may change once you’re no longer working full-time. For example, you’ll probably spend less (if any) on commuting, professional clothing, or business travel. But, you might want to anticipate increasing your spending on leisure activities, travel, or healthcare.

A common rule of thumb is the “25x rule,” which suggests that you’ll need about 25 times your annual expenses invested to maintain your lifestyle in retirement. Online retirement calculators can help you estimate whether your current savings trajectory aligns with your early retirement goals. If it doesn’t, you and your advisor may need to sit down and identify opportunities to adjust your spending habits or fill the income gap.

Assess Your Portfolio

Once you’ve reviewed your spending and considered what you’ll need to sustain your lifestyle in retirement, the next step is to evaluate your investments and overall financial positioning. As your retirement horizon shortens, for example, your investment strategy will likely need to shift from aggressive growth to a focus on preservation and steady income.

If you’re in an executive role, your compensation package likely includes stock options, restricted stock units (RSUs), or performance-based bonuses. These can significantly impact your net worth, but they also make strategically timing your exit all the more important. Be sure to review vesting schedules before making any major career moves, since leaving before your equity fully vests could mean walking away from a substantial portion of your compensation.

Another crucial consideration is healthcare coverage, considering premiums and deductibles can easily reach into the thousands each month. If you retire before age 65, you won’t yet qualify for Medicare. You’ll need an alternative way to gain coverage. If your spouse is still working and eligible for an employer-sponsored plan, you may be able to join theirs. If that’s not an option, COBRA offers continued coverage of your workplace’s policy (though without the subsidies your workplace previously provided), or you can shop around your state’s ACA insurance marketplace. 

Coasting to FIRE

If the idea of quitting cold turkey feels daunting, the “Coast FIRE” concept might be appealing. This approach involves building up your investments to the point where they can grow to support your retirement without additional contributions. Doing so would allow you to ease off the accelerator without fully stopping work.

As you gradually coast your way towards financial independence, you could shift into a consulting or fractional leadership role, negotiate reduced hours, or request a sabbatical. Reducing your workload (or even just changing your work routine) can help ease some of the mental frustrations while building a financial bridge between full-time work and full retirement.

At the same time, you might explore ways to create passive or active side income streams. Some examples include:

• Rental properties
• Dividend-producing investments
• Monetizing your expertise through writing, teaching, or speaking

Ready to Take the First Steps Toward Financial Independence?

Choosing to retire early, or even just slow down, is both a financial and emotional decision. For many women, work is a source of identity and purpose, making it harder to step away altogether—despite the relief it may bring. Give yourself grace along the way, and remember that this transition is a process, not a single decision.

The good news is, you don’t have to do it alone. A financial advisor who understands the critical pieces of your financial puzzle can help you navigate the nuances of early retirement. WealthChoice can help you explore what early retirement or financial independence could look like for you. Schedule a consultation today to get started.

The post Can I Retire Early if I’m Burned Out from My Executive Job? appeared first on WealthChoice.

It’s understandable to feel uncomfortable. Talking about a prenup can feel like questioning the strength of your relationship or your partner’s integrity. Here’s the good news: while it might not spark as much romance as a getaway to the tropics, it’s a proactive financial planning tool that can actually strengthen healthy communication, set expectations, and head off future disagreements.

So, what’s the best way to tackle such a potentially touchy subject? 

Frame it as a mutual strategy session, not a test of love. Here’s what you need to know and how to broach the prenup conversation in a way that honors your commitment to one another as well as your financial reality.

What a Prenup Actually Protects (and What It Doesn’t)

Think of a prenup as a conversation starter to help you discuss what’s yours, mine, and ours, creating a clear distinction between assets you own before marriage (separate property) and assets gained after the wedding (marital property). For high-earning women, this can help protect:

• Business interests
• Stock options
• A professional practice built prior to the marriage
• Retirement Accounts
• Investment portfolios

A prenup can also protect you and your partner from negative assets incurred before you say “I Do,” like credit card debt or student loans.

What it can’t do is predetermine child custody, support, or visitation rights. It also can’t override certain state laws or dictate routine matters of married life, like whether the silverware goes right side up or down in the dishwasher. 

The biggest misconception about prenups is that they spell certain doom for a relationship. In reality, they offer a practical way for each partner to have a voice. It’s an intentional conversation that opens the door to vulnerability, trust, and mutual respect. 

Special Considerations for High-Earning Professional Women

If you’re still on the fence about a prenup, another thing to consider is your career and income trajectory. What happens to increased earnings from promotions or bonuses after marriage? Or, what if your future income includes non-equity compensation, like stock options or restricted shares? Vesting schedules can make dividing these assets complicated, especially from a tax perspective, which makes having a plan even more important.

Assets like a business or professional license create another layer. For business owners, prenups can offer protection, such as insulating your company from legal action if your spouse were to get sued. And while your medical license might not be something the courts can split in the event of a divorce, it does carry monetary value, especially if your partner supports you during medical school. 

Another consideration is family wealth or a future inheritance. You may want to share it, or not. Or, you may want to split the interest from inherited funds, but not the principal. Whatever you decide, talk about it now–not when you’ve just come into money and are potentially also grieving.

Having “The Conversation” – A Strategic Approach

Now, to address the elephant in the room: how do you actually start a conversation like this?

1. Timing Is Everything – Talk about a prenup before the seating charts and dress alterations take over your free time. Wedding planning can be stressful; avoid letting it spill into an important financial conversation.
2. Emphasize “Us,” Not “Me vs. You” – A prenup is all about mutual protection and ensuring each person has a voice, championing clear communication–a healthy habit in any relationship. 
3. Encourage Independent Legal Representation for Both of You – Don’t leave room for either side to feel outmatched or in the dark.

Try starting with “I want to make sure that when things get tough, we can fight for each other out of love, not the fear of a financial mess,” or “I want us to be clear about our financial future so we can focus on building our life together.”

Working with the Right Professionals

Hard conversations benefit from the right help, especially when they involve complex legal and financial matters. When searching for a family law attorney, ask questions like:

• How much experience do you have?
• How do you handle negotiations while ensuring everyone feels valued?
• What about fees and billing practices?
• What are the state requirements for prenups?
• What if we need to change anything in the future?

Once you’ve found the right help, bring in a trusted financial planner. They can help you anticipate financial and tax implications within the scope of your long-term plan.

Ready to take the next step? Contact Amanda D. Singer, Esq., MDR, CDFA® for a consultation, and connect with the WealthChoice team to build a prenup that complements your financial strategy.

Sources:

https://www.forbes.com/sites/kimelsesser/2025/05/05/women-who-outearn-husbands-face-higher-marital-strain-study-says

https://wcnllp.com/something-old-something-new-something-smart-a-prenup

https://www.legalzoom.com/articles/prenuptial-agreements-what-they-can-and-cannot-protect

https://themckinneylawgroup.com/prenuptial-agreements-and-professional-licenses-protecting-your-future-earnings/

https://state48law.com/benefits-of-a-prenuptial-agreement-for-business-owners/

https://www.millerlawattorneys.com/single-post/the-role-of-a-prenup-lawyer-when-to-hire-and-what-to-ask

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Should you exercise them now? Hold onto the shares? Sell immediately? And what about the tax implications?

If you’re feeling overwhelmed by these choices, you’re not alone. Many high-achieving professionals find themselves paralyzed by the complexity of stock option decisions, and unfortunately, this uncertainty sometimes leads to letting valuable options expire unused.

The good news? With the right framework, you can make confident decisions about your stock options that align with your broader financial goals. Let’s break down what you need to know.

Understanding the Key Decision Factors

Before diving into your options, it’s important to assess a few critical factors that should influence your decision.

Current Stock Price vs. Strike Price: Your options are only valuable if they’re “in the money” – meaning the current market price exceeds your exercise (or strike) price. For example, if you can buy shares at $50 but they’re currently trading at $75, your options are worth $25 per share. If the current price is below your strike price, there’s generally no financial benefit to exercising.

Time Remaining Until Expiration: More time means more opportunity for your company’s stock to appreciate. While you can’t predict market movements, having additional months or years before expiration gives you flexibility to monitor company performance and market conditions before making a final decision.

Your Current Financial Situation: Do you have the cash available to exercise your options? Will doing so significantly impact your tax liability for the year? Understanding how exercising fits into your overall financial picture, including cash flow, tax planning, and investment goals, is crucial for making the right choice.

Company Outlook and Performance: Your confidence in the company’s future matters. Consider factors like leadership changes, market position, upcoming product launches, or industry trends that might affect stock performance. While none of us has a crystal ball, your insider perspective as an employee can provide valuable insights.

Portfolio Diversification: If you already hold significant company stock through other compensation programs or previous option exercises, you’ll want to consider whether exercising adds too much concentration risk to your portfolio. A well-diversified investment strategy typically limits single-company exposure to avoid outsized losses if that particular stock underperforms.

Your Available Options

Understanding your choices is half the battle. Here are the primary strategies to consider:

Exercise and Hold: This strategy works well when you believe in your company’s long-term growth prospects and want to maintain ownership. If you exercise and hold the shares for at least two years, you’ll qualify for more favorable long-term capital gains treatment on any future appreciation. This approach requires having cash available for the exercise price and potential tax obligations.

Exercise and Sell Immediately: Sometimes called a “same-day sale,” this approach allows you to capture the current value of your options while freeing up cash for other financial priorities. You’ll lock in today’s gains, but you’ll also miss out on any future appreciation. The proceeds can be used to diversify your portfolio, pay down debt, or fund other goals. 

Cashless Exercise: If your company offers this option, you can exercise and sell simultaneously without using your own cash. The proceeds cover the exercise price, taxes, and fees, with any remainder going to you in cash or additional shares. This can be particularly attractive if you don’t have the liquidity to exercise but still want to capture some value from your options.

Let Them Expire: If your options aren’t in the money or you have concerns about the company’s prospects, allowing them to expire might be the right choice. While this means forgoing any potential value, it also means you avoid the financial commitment and risk of exercising.

The WealthChoice Method

More often than not, exercising and selling immediately or pursuing a cashless exercise is recommended for the vast majority of WealthChoice clients in order to avoid having an overconcentration in company stock. We meet with them to ensure they:

1. Withhold enough from the sale to cover any potential taxes, because stock options that are exercised count toward your total taxable income for the year. 
2. Reinvest or direct the newly freed-up cash flow to diversified funds that round out their portfolio and keep them on track to achieve their short and long-term goals.

Of course, there may be cases where holding your options or letting them expire makes the most sense. This is why it’s essential to talk through your unique situation, compensation plan, and goals with your financial advisor.

Making the Decision That’s Right for You

There’s no universal “best” approach to stock option decisions. The right choice depends on your unique circumstances, including your financial goals, risk tolerance, tax situation, and confidence in your company’s future.

Some questions to consider might be:

• Are you comfortable with the concentration risk of holding company stock? 
• Do you need the liquidity for other financial priorities? 
• How do the tax implications fit into your broader tax planning strategy? 
• Are there other investment opportunities that offer better risk-adjusted returns?

Don’t Navigate This Alone

Stock option decisions can have significant financial implications, and the tax considerations alone can be complex. Many professionals are surprised by the tax impact of exercising options, especially if their company doesn’t withhold sufficient taxes upfront. This can lead to unexpected tax bills that disrupt other financial goals.

Working with a financial advisor who understands equity compensation can help you evaluate your specific situation, develop a tax strategy, and make decisions that support your long-term financial success. Our team regularly helps professionals navigate these decisions with a focus on risk management and tax planning. We work closely with CPAs to ensure our clients are prepared for the tax implications and have strategies in place to manage their overall tax liability.

If you’re facing stock option decisions and want to explore your choices, we’re here to help discuss your specific situation and help you develop a comprehensive plan that aligns with your goals while managing concentration risk.

Don’t let valuable options expire due to indecision. With the right guidance and framework, you can make confident choices that support your financial future.

The post What Should I Do With My Company Stock Options Before They Expire? appeared first on WealthChoice.

Even as careers progress and wealth accumulates, investing can still feel like a foreign language for many women. Considering financial literacy and investing are rarely taught in school, it’s not hard to see why many people (not just women) struggle to find their financial footing later in life. Basic financial strategies and concepts are often even gatekept from women (particularly if they grew up in more traditional households), or framed in confusing terms that just don’t resonate.

But investing isn’t just for Wall Street insiders or finance buffs. It’s a tool that’s accessible to everyone, and when paired with patience and strategy, it can be used to support your values, goals, and long-term vision.

Let’s talk a bit more about investing and financial know-how, and what you can do to feel more confident in your decision-making moving forward.

Demystifying the Investment Landscape

It feels like the investment world prides itself on being overly complex. Acronyms fly fast- ETFs, REITs, RMDs- and the sheer amount of jargon feels like it’s intentionally meant to keep outsiders at bay. But if we pull back the curtains and start with the basics, investing can be a simple and rewarding process designed to help you build wealth over time.

Speaking of keeping it simple, you don’t need to become an expert in every market cycle or memorize the intricacies of bond yields. Rather, establish your long-term goals, consider how much risk you’re comfortable taking on, and work with a trusted advisor who can manage the rest.

You and your advisor can work together to drown out the day-to-day noise of the market movements, while focusing on the long-term growth potential of your portfolio. They can help you build a well-balanced set of investments that may include stocks for growth, bonds for stability, and cash or cash equivalents for liquidity.

From there, your job is relatively simple:

• Contribute regularly
• Ignore the urge to make impulsive decisions (including buying or selling during periods of volatility)
• Reassess the performance and balance of your portfolio at regular intervals (say quarterly or annually)

Once you’ve got the basics down, you and your advisor can continue building on your knowledge and comfort levels to explore other opportunities that might align with your interests, values, and goals.

Investing That Reflects Your Career and Life Trajectory

Your wealth wasn’t built overnight. Your investment strategy shouldn’t be either. A thoughtful portfolio will reflect not just your appetite for risk, but also your life experience, evolving goals, anticipated timeline towards retirement, and the trajectory of your career.

For example, if you’ve been a business owner or executive, your income may have come in waves- perhaps through equity compensation, performance bonuses, or proceeds from a business sale. That irregularity should be acknowledged in how you approach certain aspects of your wealth and investments, including your access to cash (liquidity), diversification, and tax strategy.

Or, if you’re nearing retirement after decades of wealth building, your focus may shift from accumulation to preservation and income generation.

A well-aligned portfolio can help ensure your wealth continues to support your needs, whether you’re planning an upcoming sabbatical, giving charitably, or establishing a second act career that’s less about profit and more about pursuing your passion or purpose.

Understanding the Emotional Side of Money

Even the most capable women can carry hidden fears about investing. Perhaps you’ve seen others make costly mistakes, or you’ve been told, explicitly or implicitly, that investing is “too risky,” “too confusing,” or “not your strength.” 

Investment confidence doesn’t mean never feeling nervous. It means knowing you’ve built a framework that supports you through market ups and downs, and anchoring your decisions in a long-term plan- rather than reacting to headlines or short-term volatility.

For many women, confidence grows not from watching the markets, but from watching their own progress and simply learning by doing. When you can clearly see how your portfolio supports your personal and professional life goals, investing can feel less scary- and more like a normal part of everyday life.

How the Right Advisor Can Help Improve Financial Confidence in Women

If investing still feels like unfamiliar territory, that’s okay. What matters most is not where you’re starting, but how you move forward. The financial industry hasn’t always done a great job of meeting women where they are- but we’re happy to say that’s starting to change.

Today, more advisors are embracing a collaborative approach to planning, which prioritizes education and goal-setting. They’re tailoring strategies to better reflect real-world needs and changes, as opposed to relying too heavily on outdated hypothetical models. More advisors are also creating space for conversations that go beyond charts and benchmarks to focus more heavily on your priorities, opportunities, and vision for the future.

If you’re ready to take the next step, you don’t have to go it alone. With the right support, you can gain the literacy, clarity, and confidence to build a portfolio that reflects the life you’ve worked so hard to create. Don’t hesitate to send us a message, let us know what’s on your mind, and schedule time to talk with our team.

The post Boosting Investment Confidence and Literacy in Women appeared first on WealthChoice.

While retirement might be the farthest thing from your mind, here’s a hard truth for Gen Zers: time is your greatest resource, but you must know how to use it to your advantage. The earlier you start incorporating some simple and proactive retirement planning into your budget, the better off you’ll be when the time eventually comes to call it quits.

Below, we’re sharing a few practical tips to start saving for the future—even when it feels impossibly far away.

Start Early, No Contribution Is Too Small

The earlier you start saving for retirement, the less you’ll need to contribute each month—and most importantly, the more you can take advantage of compounding interest.

Compounding occurs when you start earning returns or interest on previously earned returns or interest, not just the principal amount contributed.

That sounds confusing, but here’s a simple example of how compounding works:

Say you initially contribute $1,000 to an account that earns 7% annually on average, and $100 after that each month. In the span of 10 years, you’ll have contributed $13,000 total. But each year, the interest compounds, meaning whatever was earned plus contributed to the account previously starts to earn interest as well. By the end of that 10-year span, your $13,000 will have grown to $18,546.

The longer you enable your money to compound, the more impactful the power of compounding becomes. You might not see a big difference right away, but be patient and give your money time to grow. By the time you reach retirement (which may be 20-30+ years away), small, continuous contributions will grow into substantial savings.

Compounding growth is also the reason you’re better off setting aside a small amount, say $200 each month for 30 years, than $600 (triple the amount) for 10 years. 

Understand What Retirement Saving Tools You Can Use

The most common retirement savings accounts are 401(k)s, IRAs, and Roth 401(k)s/IRAs. 

401(k)

You will likely be offered a 401(k) from your employer, or a 403(b) if you’re a public sector employee. Only available through your workplace, these plans offer an effective, simple tool for building wealth over time. The best part? You can set it and forget it.

With a 401(k), you’ll have the option to automatically defer a portion of your paycheck (say 3%, for example). This portion is diverted to the 401(k) before taxes are taken out of your paycheck, meaning your contributions lower your taxable income for the year. If your employer offers matching, they’ll also contribute a certain dollar amount or percentage to your account—yes, that’s free money for retirement. Just keep in mind, you may be required to stay with the company for a certain amount of time in order to keep your employer matching contributions (this is called vesting). But anything you contribute directly is yours, regardless of the vesting schedule.

The funds grow tax-deferred, meaning you won’t have to pay taxes on earnings in the account each year. Once in retirement, you’ll be able to withdraw from the account. Withdrawals are subject to ordinary income tax—remember, up until now, these are earnings that haven’t been taxed yet.

IRA

An individual retirement account (IRA) works similarly, except it’s opened by you, not your employer. If you or your spouse are offered a 401(k) at work, you may be limited by how much you’re allowed to make in tax-deductible contributions to an IRA. Generally speaking, the annual contribution limit for IRAs is also significantly less than 401(k)s. For 2025, for example, you can contribute up to $7,000 to an IRA, compared to $23,500 for a 401(k).1 

Roth 401(k)/IRA

A Roth account works in the opposite way, tax-wise. Your contributions to either a Roth 401(k) or Roth IRA are not tax-deductible, meaning you pay taxes on the funds directed into a Roth account. The earnings do grow tax-deferred, however. And if you meet the criteria for qualified distributions in retirement (namely, you must be 59.5 or older and have had the account for at least five years), all withdrawals are tax-free.

Prepare for Emergency Expenses

With the cost of, well, just about everything on the rise and salaries staying stagnant, it’s not unusual for young professionals to feel financially pulled in a million directions. Between paying down student loans, saving up for a house, filling your 401(k), and enjoying life, there may not be much left over.

That being said, we cannot overstate the importance of setting aside some savings in case of an emergency. While the general rule of thumb is to save up enough to cover your expenses for around 3-6 months, at this stage, anything helps. You can’t predict when your car will need costly repairs or a large hospital bill sends you into medical debt.

While directing savings into an emergency fund might feel like the last priority on your list right now, consider the cost of not doing so. Expenses you can’t pay either lead to taking on more debt (and often high-interest debt at that) or drawing down funds meant to support your long-term goals (like retirement). Not only can taking money out early cause you to lose out on those compounding benefits, but depending on the type of account, you could be hit with penalties and more tax liability, too.

You’re Doing Great, Now Keep Going

Keeping your future goals (including those that feel far, far away) a priority is no easy feat, especially as you continue facing an uphill battle of tough economic climates and challenging market conditions. But starting small, saving incrementally, and balancing your needs today with your future financial security is critical. Today, you have time on your side to make your money work harder—it’s just a matter of leveraging it to your advantage.

Sources:

1 IRS

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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.

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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.

Many financial advisors are bracing for more volatility in the coming months, with recent tariff announcements this month making investors nervous. 

How Does Market Volatility Work?

We often forget that markets don’t rise and fall on their own – investors make decisions based on either strategy or a reaction to what’s happening in the world. If people say that “markets are nervous” about upcoming tariffs, for example, what it means is that investors are nervous and making decisions accordingly. 

What Are Tariffs, and Why Do Investors Care?

With all the talk of tariffs in the news, it’s leaving many investors asking:

What, exactly, are tariffs? And should we be concerned?

Tariffs are essentially taxes imposed on imported goods. When a country implements tariffs, importers are required to pay additional fees when bringing specific foreign products into the country. These costs are typically passed along to businesses and, eventually, to consumers.

When tariffs are implemented, they can affect different sectors in various ways:

• Companies that rely heavily on imports may face higher costs
• Domestic manufacturers might benefit from reduced foreign competition
• Consumer goods prices could increase as businesses pass costs down

An Advisor’s Perspective

When the market fluctuates, investors often turn to financial experts with questions. Our clients are no different! 

While we’ll never pretend to have a crystal ball when it comes to the markets, we do pride ourselves in always being prepared for every eventuality. If the last quarter has shown us anything, it’s that anything can happen. 

However, our team incorporates several key approaches in our wealth management strategy:

We build risk insulation and the possibility of volatility into our financial plans. We don’t wonder if a recession is going to hit—we prepare for market downturns and future recessions as an eventuality. Market volatility is part of the reality when it comes to investing. 

That’s why we help all of our clients develop a unique approach to risk in their portfolios based on their goals – when they want to retire, their lifestyle, and their personal risk aversion. 

For example, if a client is in retirement, they may be less able to withstand a significant amount of risk in their portfolio because they’ll need to access their assets right away. On the other hand, a client who has 30 years until retirement has a longer time to “bounce back” from a market downturn or recession and take on more risk in their portfolio. 

We believe in time in the market, not timing the market. When the market starts to flag, you may be tempted to “time” the market. They use different “strategies” to try and predict what will happen next across various asset classes and make decisions to buy and sell based on those predictions. But, here’s what we’ve seen repeatedly: market timing rarely (if ever) works! 

In fact, investors who time the market are playing a dangerous game. Take a look at this graph from Vanguard Investment Advisory Research Center:

When investors time the market, they have to get the timing “right” twice – both when they sell (missing market drop-offs), and when they buy back in (to take advantage of market highs). There’s an incredible amount of risk here, especially when we know that investors are essentially guessing about what the market will do and when. 

Taking it a step further, according to the graph above, some of the best trading days come immediately after some of the worst. Investors who go to cash or do a mass sell-off during a volatile market are likely to miss out on significant gains. 

This is why our team at WealthChoice believes that, rather than trying to time the market, we should focus on investing for the long game. By staying the course (and staying in the market) through highs and lows, we believe our client portfolios are more likely to take advantage of some of the “best” days of gains. 

We believe in educating and empowering our clients. Given recent market volatility, we recently set up an educational webinar for our clients. The Q&A was so impactful that we wanted to make it available to everyone who had questions! To view the webinar recording, Navigating Tariffs and Market Volatility, click here! 

Our team views investing as a holistic process. We consider everything from risk management to investor psychology and behavior, technical portfolio construction, and our clients’ unique goals. 

We’re helping our clients play the long game by building portfolios that balance every facet of wealth management and regularly evaluating asset allocation to help them strategically rebalance during market ups and downs.

The Benefits of Working With a Financial Advisor

When faced with market volatility and general economic uncertainty, it’s easy to feel like the stock market is all-consuming. At WealthChoice, we believe that investing is just one component of our clients’ overall wealth management strategy. When we partner with you, we focus on creating a portfolio that matches your unique goals and risk tolerance. 

But that’s not the primary value we believe we bring to the table when working with our clients.

When you work with WealthChoice, you get:

1. A true financial partner. Yes, we’re watching the markets and making strategic adjustments to your portfolio. More than that, though, we’re walking alongside you to answer questions, pivot your plan based on changes in your life, helping you prioritize goals and make financial decisions, and more. We’re in your corner every step of the way, no matter what the market is doing.
2. A focused guide. We work with clients just like you, and we’ve truly seen it all. Our job is to take our years of experience and transform it into personalized financial advice that’s uniquely tailored to your individual goals and situation.
3. A holistic planner. We focus on your portfolio, but we’re also helping you focus on: retirement, tax strategy, cash flow, career and stock option planning, insurance, education savings, and so much more. Our team looks at your financial plan as a sum of many moving parts. We worry about keeping all of these plates spinning so that you can achieve financial peace of mind and refocus your energy on what actually matters – living your life to the fullest.

The WealthChoice Advantage 

In our experience, one of the top benefits our clients get from partnering with our firm is that we’re there to support them emotionally through every season of their lives. According to studies by Vanguard, the estimated financial benefit of behavioral coaching from your financial advisor can add up to 1.5% in additional returns in your portfolio, purely by helping clients manage their response to market turbulence.

Behind the charts, portfolios, and financial plans lies the most valuable aspect of our relationship: a trusted partner who understands both your financial situation and your personal journey. When markets plunge or life throws unexpected challenges your way, having someone who knows your goals and can provide objective guidance proves invaluable. We serve as a buffer between your emotions and your financial decisions, helping you avoid costly reactions to short-term events that could derail your long-term strategy.

This human element of financial advising often goes unmentioned in promotional materials focused on investment returns and technological capabilities. Yet, time and again, our clients tell us that what they value most is knowing they have someone in their corner who can validate their concerns while keeping them focused on the bigger picture. In a world of algorithmic investing and robo-advisors, this thoughtful, personalized guidance represents the true WealthChoice difference.

Want to learn more? 

You deserve a financial planner who prioritizes your education, and empowers you to feel confident in your strategy – even during periods of market volatility. If you want to learn more about partnering with our team at WealthChoice, we encourage you to book a complimentary consultation today. We’re here to support you in achieving your unique goals, whatever they may be.

The post The Stock Market, Tariffs, and Partnering With WealthChoice 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

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