High Earning Women

Wealth Management For High-Earning Women

In the U.S., women control a third of household assets. But by 2030, U.S. women are expected to control much of the assets that the baby boomer generation will pass to heirs, roughly 30 trillion in assets. High-earning women have become the newest face of wealth and will increase their net worth even more.

High-earning women are becoming the primary ‘breadwinners’ in many families and are increasingly the financial decision-makers. Women have unique needs that often differ from their male counterparts:

· Women have an additional life expectancy of 5 years longer than men.

· Women earn seventy-nine cents to every dollar a man earns.

· Women often take time off from work to care for other family members.

· Women, on average, save less than men for retirement and other financial goals.

Women must manage their finances and work with an advisor they trust who understands their situation. Even though they may be high earners, they must plan for and manage their wealth and may benefit by incorporating these financial planning components:

Tax planning- Planning for taxes at the beginning of the year can help determine what tax-saving strategies are available based on having a higher income. Certain tax credits and contribution limits for retirement savings accounts may phase out.

Goal setting- Even though a higher income provides more money to save, invest, and spend, it’s vital to identify realistic goals to work toward. Some goal-setting ideas include:

· Giving to charity

· Estate planning

· Pursuing a specific return on investments

· Eliminating debt and working toward paying off a mortgage

Selecting investment strategies aligned with values- A study by Cerulli Associates found that 43% of women feel a company’s policies on social or environmental issues are essential when deciding to invest in that company.

Working with financial, legal, and tax professionals- High-earning women may have more complex tax and estate planning needs than their female and male counterparts. They must also have professional unbiased financial advice tailored to their unique situation. These professionals can work as a team to help identify unique issues, develop a plan, and select strategies to help their mutual client work toward their goals.

Diversifying their portfolio’s investment strategies- For high-earning women, putting all your money into strategies that aren’t diversified can leave you with a tax bill or put your portfolio at risk of loss during market turbulence. As a high earner, private investments, REITs, or other strategies may offer diversification when included in a portfolio containing tax-deferred and tax-exempt strategies.

Taking action to manage their wealth and plan for their future can help women pursue financial confidence, regardless of their income. Reach out to a financial professional today to get started.

A financial advisor with a fiduciary duty provides this commentary and serves individuals and families across Arizona.

Past performance is not indicative of future results. The material above has been provided for informational purposes only and is not intended as legal or investment advice or a recommendation of any particular security or strategy. The investment strategy and themes discussed herein may be unsuitable for investors depending on their specific investment objectives and financial situation. Information obtained from third-party sources is believed to be reliable though its accuracy is not guaranteed, and J. Martin Wealth Management makes no representation or warranty as to the accuracy or completeness of the information, which should not be used as the basis of any investment decision. Information contained on third party websites that J. Martin Wealth Management may link to are not reviewed in their entirety for accuracy and J. Martin Wealth Management assumes no liability for the information contained on these websites. Opinions expressed in this commentary reflect subjective judgments of the author based on conditions at the time of writing and are subject to change without notice. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission from J. Martin Wealth Management. For more information about J. Martin Wealth Management, including our Form ADV brochures, please visit https://adviserinfo.sec.gov."

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The information I've included here is for illustrative and informational purposes only and should not be considered legal, tax, or investment advice. Investment advisory services are offered through Wealth Watch Advisors, Inc., an SEC-registered investment adviser. The firm transacts business only in states where it is properly registered or is excluded or exempted from registration requirements. SEC registration is not an endorsement of the firm by the Commission and does not imply that the adviser has attained a specific level of skill or ability. All investment strategies carry the potential for profit or loss. Investing involves risk, and no strategy can guarantee success or eliminate the possibility of loss. Neither Wealth Watch Advisors nor J. Martin Wealth Management, LLC, is endorsed by the Social Security Administration or any other governmental organization.