Women’s wealth is rising rapidly, with an estimated $30 trillion set to transfer to women in the next decade. This shift empowers women to take charge of their financial futures through thoughtful planning and investing.

While the opportunities are significant, so are the challenges: selecting investments that fit your goals, navigating taxes, and preparing for medical expenses like long-term care. 

This article by Bulman Wealth Group discusses several ways to help you grow and preserve your nest egg, from setting retirement goals and diversifying investments to optimizing tax strategies and planning for long-term care.

Understanding Your Unique Financial Situation

Our financial situations, goals, and dreams are unique—what are yours? Taking time to think about what you want for the future and understanding your comfort with investment risk is an important first step. Here are some questions to guide your planning.

What Are Your Retirement Goals?

Have you considered the lifestyle you envision for retirement? Establishing specific goals—such as income needs, travel plans, and anticipated healthcare expenses—helps guide investment choices and keeps your financial strategy on track.

How Long Is Your Time Horizon?

The period between now and when you’ll need to access your funds, known as your time horizon, plays a crucial role in shaping your investment strategy. If you have a longer time horizon, are you comfortable with a higher tolerance for risk to maximize growth over time?

What Is Your Risk Tolerance?

How comfortable are you with taking on risk in your investments? Understanding your risk tolerance helps determine an investment approach that fits your comfort level and goals. Different investments carry varying levels of risk, so knowing your tolerance can help balance potential returns with a measure of confidence.

A Bulman financial advisor in California can help you identify your goals, time horizon, and risk tolerance to create a customized financial plan that builds lasting financial confidence in California.

Building a Diversified Investment Portfolio

The next step is to select a diversified portfolio that aims to mitigate risk while fostering growth. Diversification involves spreading investments across various assets to balance those that may appreciate while others may fluctuate. Consider these key elements.

Investment Options

A range of investment options—such as stocks, bonds, mutual funds, and exchange-traded funds (ETFs)—can support growth over time. Stocks offer higher potential returns but carry greater risk, while bonds provide a steadier income with generally lower risk. Mutual funds and ETFs allow you to invest in a bundle of assets, promoting diversification within a single investment.

Asset Allocation

Asset allocation involves blending different types of investments into a portfolio that reflects your goals and risk tolerance. For example, a portfolio might have a 70% allocation to stocks and 30% to bonds or a more balanced 50/50 mix. Each allocation model carries risks and growth potential. Regular rebalancing helps keep your portfolio aligned with changing goals and market shifts.

Investment management requires regular review and analysis to adapt to changing needs. Many women find working with an experienced advisor offers valuable support. Bulman’s advisors are ready to assist you with investment and retirement planning in California.

Navigating Retirement Tax Considerations

While paying taxes is a reality of managing wealth, there are effective strategies to avoid paying more than necessary.

Tax Brackets

Knowing your tax bracket helps you plan ahead, find ways to save on taxes, and prepare for retirement withdrawals, all while minimizing tax liabilities. Also, understanding your bracket guides you in choosing the right accounts and investments to focus on.

Tax-Advantaged Accounts

Employer-sponsored plans and Traditional IRAs are invaluable for retirement planning in California. Maximize contributions, use catch-up limits if you’re over 50, and take advantage of employer matches.

Self-employed? Consider SEP or Solo 401(k)s to reduce taxable income and foster growth through tax deferral. Roth IRAs and conversions can further add flexibility with tax-free growth.

Tax-Efficient Withdrawals

Planning when and how to withdraw from different accounts can help manage your tax burden. You might start with taxable accounts, then shift to tax-deferred ones like Traditional IRAs, which can help keep income within lower tax brackets.

Bulman advisors can assist with ways to take advantage of retirement tax benefits in California.

Seeking to Protect Your Wealth With Long-Term Care Planning

Long-term care is a growing concern, especially for women, due to rising healthcare costs, making long-term care planning in California crucial for seeking to protect assets.

Medicare and Medigap typically don’t cover services like in-home assistance or nursing care. Medi-Cal (California’s Medicaid) generally requires spending down assets before it will cover nursing home costs.

Long-term care insurance can be a valuable solution, helping preserve savings and easing the financial burden on family members. Healthcare planning is vital to maintaining financial stability for future care needs.

Seeking Professional Guidance

Many financial advisors want to manage your wealth, but before selecting one, it’s wise to ask the following questions:

• What is your experience?
• What services do you offer?
• How often will we communicate?
• How are you compensated?

Knowing the answers to these questions can help you determine if they’re the right fit for you. Be cautious of advisors who work on commission, as this may influence their guidance. A fiduciary financial advisor is legally obligated to act in your best interest.

At Bulman Wealth Group, our financial advisors are fiduciaries with decades of experience. We provide comprehensive wealth management services that include five key components: investment management, tax planning, healthcare planning, estate planning, and retirement income planning.

Consider Working With Bulman Wealth Group

We recognize the unique financial challenges and opportunities our female clients face. Also, we understand that women often have distinct financial journeys compared to men, and we celebrate these differences. This is why we provide tailored support to each individual.

Our team is a close-knit family of experienced professionals, including parents, siblings, and lifelong friends. We’re all united by a shared mission to help you build confidence in your retirement so you can pursue the life you deserve.

Whether you’re planning for long-term care, managing taxes, or building a diversified investment portfolio, we’re here to help.

Interested in learning more? Reach out to us for a no-obligation consultation today.

All content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Nor is it intended to be a projection of current or future performance or an indication of future results.

Opinions expressed herein are solely those of Chris Bulman Inc. dba Bulman Wealth Group and our editorial staff. The information contained in this material has been derived from sources believed to be reliable but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed. All information and ideas should be discussed in detail with your individual advisor prior to implementation. Investment advisory services are offered through Chris Bulman Inc dba Bulman Wealth Group, an SEC Registered Investment Advisor. Insurance products and services are offered through Chris Bulman, Inc. dba BWG Insurance Agency and Ameritas Life Insurance Corp., CA State Insurance License # 0M46922. Being registered as an investment advisor does not imply a certain level of skill or training.

Bulman Wealth Group, BWG Insurance Agency and Ameritas Life Insurance Corp. are not affiliated with or endorsed by the Social Security Administration or any other government agency.

Any statements or opinions expressed should in no way be construed or interpreted as a solicitation to sell, or offer to sell, advisory services to any residents of any State other than the States where otherwise legally permitted.