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How To Prepare for the Future: A Guide to Financial Planning for Women

Admin • March 22, 2024

You understand the importance of financial planning, and making decisions to manage and protect your wealth so that you (and potentially your partner!) can enjoy your retirement for years to come. But an often overlooked fact when financial planning — and one that has a significant impact on the planning process — is that women statistically live longer than men. 

On average, women in the U.S. live almost six years longer than men : This is six more years that women may have to consider their financial needs and protect their wealth and financial well-being. Women also face persistent gender disparities that impact their wealth accumulation. 

By addressing these issues with strategic financial planning, women can be more proactive in building a secure future for themselves and their families in the years ahead.

Challenge the Gender Income Gap

Women earn less than men: In 2022, women earned an average of 82% of what men earned , and this unfortunately hasn’t changed much in the last two decades.

Because of this, women may find it more challenging to save money and build an emergency fund. When you have less income coming in, it can be difficult to create a financial safety net, which leaves you less financially resilient to unexpected expenses.

The gender pay gap also affects women’s contributions to retirement accounts. A lower income often translates into smaller retirement savings, which can potentially lead to less financial security during retirement years.

To challenge the gender income gap, women can advocate for financial and income equality by negotiating salaries, seizing career opportunities, and advocating for fair compensation. By challenging the income gap, you can enhance your ability to save meaningfully and plan for the future.

Narrow the Investing Gender Gap

Women have also been less likely to invest their money compared to men: historically, around 60% of US men invest in stocks, compared to 40% of US women . While this gender gap in investing is decreasing rapidly, women can overcome it by actively engaging in investing. 

Women typically tend to be more risk averse, prioritizing wealth preservation and security and preferring less volatile investment options. There is also a confidence gap in investing: research suggests that women may possess lower confidence in their financial knowledge and investment decisions . This low risk tolerance and lack of confidence can make women more hesitant to pursue investment opportunities and explore more diverse financial instruments. 

Interestingly, despite being more risk-averse and less confident, women on average have better-performing investments than men, with up to 1% higher investment returns. Women are more likely to buy and hold their investments, and they are more likely to remain patient and calm during times of market volatility.

By further promoting financial literacy tailored to women, and breaking down stereotypes that lead women to believe they’re less capable than men of navigating financial markets, women can take control of their investment decisions and take charge of building and growing their wealth.

Set Goals as Part of Financial Planning

Setting goals to achieve throughout the different stages of their lives can help women foster financial stability and resilience throughout their years. Goals can act as a roadmap to guide you in your journey and help you take control of your financial future.

  • Short-term Goals : Establishing short-term financial goals is the first step in constructing a solid financial foundation. Build your savings, establish an emergency savings fund, and manage your debt to grow your wealth. Incorporate a budget as part of your financial plan, to help keep you on track to reaching your goals.
  • Mid-term Goals : Mid-term financial goals can include career advancement, homeownership, and investing. These all provide a strategic avenue for you to continue to build wealth and long-term financial security. Mid-term goals may also include paying for higher education costs for your children, or potential caretaking costs – investment strategies can help make these goals attainable while still building and protecting wealth.
  • Long-term Goals : Long-term goals involve retirement planning and estate planning to preserve and protect your wealth. ‘Early retirement’ planning helps ensure a comfortable life in your golden years. ‘Late retirement’ planning can help address the need for extended financial security if you live longer and survive your spouse.

Financial Planning for Women

A tailored, comprehensive financial plan can help women ensure they’ll have the continued financial stability and security to navigate the years ahead. Women should have a financial plan in place that not only plans for the years with a potential partner but also the years where they may be on their own.

Retirement Planning

With pay inequality, women start their working years lagging behind men in retirement savings. Because of this, women need to be proactive and begin retirement planning early on; this can help them build a strong foundation over time for a secure and comfortable retirement.

Explore all retirement savings options available to you: Choose retirement strategies that are aligned with your goals, and make sure to contribute the maximum whenever possible to 401(k)s, IRAs, Roths, or other retirement accounts. By starting this process early in your working years, you can ensure that your retirement contributions are well-positioned to maximize long-term growth.

Investment Planning

Investment planning is the cornerstone of financial growth and security. Tailoring investment strategies to the unique needs of women is key to maximizing wealth accumulation. 

Build a well-rounded portfolio that includes a mix of different asset classes and investment vehicles. Diversification can help you mitigate risk and weather any market fluctuations. Align your investments with your long-term financial goals, so that your investments can continue to grow and help you build wealth over time.

Estate Planning

As the longevity of women increases, so does the importance of estate planning and wealth preservation. With careful planning, women can proactively manage their estates and leave a lasting impact on the financial well-being of their loved ones.

Creating an estate plan will help ensure your wishes are honored and your wealth is distributed according to your intentions. It’s important to prepare a will, assign a power of attorney, and outline your healthcare wishes. Consider trusts and other estate planning strategies to minimize tax implications and create a more seamless transfer of wealth.  

Planning for wealth transfer and inheritance is a thoughtful process that involves careful consideration of family dynamics; communicate openly with your family so they understand your wishes.

Insurance Planning

Women should plan for potential healthcare needs in the later stages of their life, particularly with longer life expectancies. Women who live longer will likely face higher medical expenses in their lifetime, as well as be more likely to need long-term care. 

It’s essential to anticipate your healthcare costs in retirement and the care you may need so that you can be better prepared for future uncertainties without compromising your financial stability. Make sure you understand your life insurance and health insurance coverage, as well as the long-term care options available to you. Developing a comprehensive insurance strategy can provide peace of mind for yourself and your loved ones.

Empowering Women in Their Financial Planning

Navigating the intricacies of financial planning can be complex, and guidance from financial advisors can empower women to make informed decisions about their financial futures. At Five Pine Wealth Management , we take a holistic approach to financial planning to help you reach your investment and retirement goals. 

We make sure we understand your needs, objectives, risk tolerance, and time horizon so we can help you create a comprehensive plan that is custom-tailored to you and your unique circumstances. To see if we can help you, send us an email or give us a call at: 877.333.1015 today.

40 and Catching Up: Why This Decade Could Be Your Best for Building Wealth

July 18, 2025
Your 40s arrive with a unique mix of clarity and urgency. You've likely figured out what you want from life, but suddenly retirement no longer feels like a distant concept. If you're looking at your financial situation and feeling behind, you're not alone. Many people in their 40s experience this same wake-up call. The good news is that this decade offers some of the most powerful opportunities to accelerate your wealth-building journey. Think of your 40s as your financial prime time. You're earning more than you ever have, you understand money better than in your 20s and 30s, and you still have 20-25 years to let compound growth work its magic. Instead of dwelling on what you should have done differently, let's focus on what you can do right now to make this decade count. The Reality Check: Where You Stand vs. Where You Want to Be Before exploring strategies, let's acknowledge the elephant in the room. Many financial experts recommend saving three times your annual salary by age 40. If you're reading this and thinking, "I'm nowhere near that," take a deep breath. Life happens. Maybe you started your career later, switched fields, dealt with medical expenses, helped family members, or simply prioritized other goals during your 30s. The key is to start from where you are today, not where you think you should be. Your 40s bring unique advantages: higher earning potential, greater financial discipline, and often more stable life circumstances. Many successful investors didn't hit their stride until their 40s or later. You're not behind; you're just getting started on a more intentional path. Retirement Savings Strategies That Work in Your 40s Your retirement savings strategy in your 40s should differ from someone in their 20s or 30s. You have less time but more resources, which means you need to be both aggressive and smart about your approach. First, maximize your employer's 401(k) match if you haven't already. This is free money, and missing out on it is like leaving cash on the table. Additionally, consider increasing your contribution rate by 1-2% each year, or whenever you receive a raise. This gradual approach makes the adjustment less painful while significantly boosting your long-term savings. Roth conversions become particularly powerful in your 40s. If you expect to be in a higher tax bracket in retirement or if you want to leave tax-free money to heirs, converting some traditional IRA or 401(k) funds to Roth accounts can be a smart move. The key is to do this strategically, perhaps in years when your income is temporarily lower or when you can manage the tax impact. Don't overlook the power of diversification beyond your 401(k). A taxable investment account gives you flexibility and access to your money before age 59½ without penalties. This can be crucial for achieving early retirement goals or covering major expenses that may arise before the traditional retirement age. Catch-Up Retirement Contributions: Start the Habit Now Once you reach 50, you can make catch-up contributions to your retirement accounts, which significantly increases your savings potential. For 2025, this means an additional $7,500 in 401(k) contributions (bringing your total to $31,000). However, you don't have to wait until 50 to think like someone making catch-up contributions. Start now by treating your savings rate as if you're already eligible for these higher limits. If you can save an extra $600 per month ($7,200 annually) starting at 45, you'll have built the habit by the time you're actually eligible for catch-up contributions. Retirement Milestones by Age 40: A New Perspective Traditional retirement milestones can be discouraging if you're starting later or if life hasn’t gone as planned. Instead of focusing on arbitrary multiples of your salary, consider these more practical benchmarks for your 40s: The Emergency Fund Foundation : Before aggressively pursuing retirement savings, ensure you have a solid emergency fund in place. This prevents you from having to tap retirement accounts during tough times. Aim for 3-6 months of expenses, adjusted for your specific situation. The Debt Freedom Focus : High-interest debt can quickly derail retirement plans. If you're carrying credit card debt or other high-interest obligations, addressing these might be more valuable than maximizing retirement contributions beyond your employer match. The Income Replacement Goal : Rather than focusing on net worth multiples, think about what percentage of your current income you're on track to replace in retirement. A good target is 70-80% of your pre-retirement income, but this depends on your lifestyle and retirement plans. The Flexibility Buffer : Your 40s are a great time to build financial flexibility. This means having investments outside of retirement accounts that you can access without penalties, creating multiple income streams, and maintaining career skills that keep you marketable. Insurance: Life and disability insurance coverage should reflect your current income and family needs. Estate Planning : A basic will, power of attorney, and healthcare directive should be in place. Making Your Peak Earning Years Count Your 40s often represent your peak earning years, and how you manage this increased income will significantly impact your financial future. The temptation to inflate your lifestyle with every raise is real, but this decade calls for more strategic thinking. Consider implementing a "pay yourself first" approach where you immediately redirect any income increases to savings and investments. If you get a $5,000 raise, automatically increase your 401(k) contribution by $3,000 and your taxable investment account by $2,000. You'll barely notice the difference in your take-home pay, but you will thank yourself in the future. This is also the time to think seriously about additional income streams. Whether it's consulting in your field, starting a side business, or investing in rental real estate, diversifying your income sources provides security and potential for acceleration. Building Wealth Beyond Retirement Accounts While retirement accounts are crucial, they shouldn't be your only wealth-building tool. Your 40s are an excellent time to diversify your investment approach and build wealth that's accessible before traditional retirement age. Consider opening a taxable investment account if you haven't already done so. This provides flexibility and liquidity while still offering growth potential. Focus on tax-efficient investments, such as index funds, and consider holding dividend-paying stocks or REITs for their income potential. Real estate can be particularly powerful in your 40s. Whether it's paying off your primary residence early, investing in rental properties, or exploring REITs, real estate adds diversification and potential inflation protection to your portfolio. Don’t Forget the “You” Factor We’d be remiss not to mention this: life in your 40s is busy. You might be managing aging parents, teenagers, or a toddler (or all three). You may be helping your partner through a career change or navigating one yourself. It’s a lot. Which is precisely why intentional financial planning matters now more than ever. You don’t need to do it perfectly. You just need a plan that’s rooted in your real life — your values, your vision, and your goals. A good financial advisor can help you prioritize, simplify, and clarify the next best steps, even if you feel like you’ve fallen behind. Ready to Create Your Personal Financial Strategy? Feeling overwhelmed by all the options and strategies available? You don't have to navigate this journey alone. At Five Pine Wealth Management , we specialize in helping individuals and families in their 40s and beyond create comprehensive financial plans that align with their goals and circumstances. Whether you're looking to maximize your retirement savings, explore catch-up strategies, or build a diversified investment portfolio, our team can help you develop a personalized approach tailored to your situation. We work with clients at various stages of their financial journey, from those just getting serious about retirement planning to those with substantial assets seeking to optimize their strategies. Don't let another year pass wondering if you're on the right track. Schedule a conversation with our team to discuss your financial goals and explore how we can help you make the most of your financial prime time.

The Best Long-Term Investment Strategy? Stay Invested, Stay Calm

June 20, 2025
When markets are calm, investing can feel easy. You contribute regularly, watch your portfolio grow, and start picturing that future vacation home or early retirement. But when markets get volatile, everything changes. Suddenly, headlines are full of dire warnings. Account balances fluctuate. And the urge to do something can feel overwhelming. At Five Pine Wealth Management , we understand how emotional investing can become during periods of market uncertainty. One of the most important things we do as fiduciary financial planners is to help our clients stay grounded when the market gets choppy. Let’s walk you through how we approach investment risk management and why having a clear, disciplined philosophy matters most when volatility strikes. Our Philosophy: Think Long-Term, Not Next Week When markets are moving fast, it is easy to think that the “best long-term investment strategy” must involve taking action to avoid losses or chase gains. The reality is usually the opposite. Reacting to market noise can often do more harm than good. In fact, one of the greatest risks to long-term returns is making emotional decisions in response to short-term events. We coach our clients to stay focused on their long-term financial plans and goals. Volatility is a feature of markets, not a flaw. By designing portfolios with realistic expectations for ups and downs, we help clients stay invested through all market environments. Here is what this looks like in practice: We use broadly diversified portfolios built around low-cost ETFs. We focus on asset allocation aligned with your time horizon, goals, and risk tolerance. We do not chase trends or attempt to time the market. We regularly review and rebalance portfolios based on your financial plan, not headlines. In short, your portfolio is designed to ride out volatility, not avoid it entirely. Fiduciary Financial Planning: Advice in Your Best Interest There is a great deal of noise in the financial world, particularly during turbulent market conditions. One of the most significant ways we help cut through it is by being fiduciary financial planners. That means we are legally and ethically obligated to act in your best interest at all times. We are also fee-only advisors. We do not receive commissions for recommending one investment over another. Our primary agenda is to help you reach your goals. During market volatility, this matters more than ever. Too many investors fall prey to sales pitches disguised as “solutions” to market risk. We focus on education and long-term planning rather than quick fixes. Being a fiduciary allows us to focus on what serves you best: Keeping you aligned with your personal goals and values Helping you tune out market noise and media hype Offering sound, research-backed guidance without conflicts of interest Your Coach Through Emotional Market Cycles One of our most important roles as financial planners is helping clients manage the psychological side of investing. It is one thing to know, intellectually, that markets will recover over time. It is another thing to watch your portfolio drop 15% and not feel anxious. Market downturns create powerful emotions. Fear. Doubt. Sometimes, even panic. As humans, our instinct is to take action to relieve those feelings, even when the logical course is to stay invested. That is where we come in. We help coach clients through these moments so they can avoid costly mistakes like: Selling during a downturn and locking in losses Chasing the next hot trend during a rebound Over-concentration in “safe” assets out of fear We remind clients that volatility is a normal part of the market. Markets have experienced recessions, wars, pandemics, and political turmoil before. They will again. Over time, markets have historically rewarded patient investors who stayed the course. When you work with us, you gain a trusted partner who is here to talk through your concerns, offer perspective, and help you make decisions that serve your long-term goals. Why Staying the Course Actually Works It may seem counterintuitive, but reducing activity during market volatility often yields better outcomes. Consider this: From 1999 through 2018, if an investor missed just the 10 best days in the S&P 500, their overall return would have been cut nearly in half . Many of the best market days happen very close to the worst ones. Trying to time the market is a challenging task, even for seasoned professionals. By maintaining a disciplined investment approach and staying fully invested, you ensure that you are there for both the recoveries and the long-term growth that markets provide. Our role is to help you build a portfolio designed for precisely this kind of staying power. We structure your investment mix to help you weather market cycles without having to guess what will happen next. Educating Clients About Normal Market Cycles Another key aspect of fiduciary financial planning is helping clients understand what is “normal” in the market. Volatility is not a sign that something is broken. It is a natural part of how markets function. In fact, without volatility, markets would not offer the returns that make long-term investing so powerful. We work with clients to help them see: Why some years will be down, but others will be very strong Why trying to avoid all losses is neither realistic nor necessary How staying invested through cycles often leads to far better outcomes than jumping in and out of the market Perspective is everything . The more you understand market behavior, the less likely you are to make emotional decisions during downturns. Different Stages, Same Principles Our approach also adapts to the varying needs of clients at different stages of their financial journey. For clients in their 40s to 60s: We may focus on prudently preserving and growing wealth. We help manage sequence-of-returns risk as you approach retirement. We may emphasize income planning and portfolio sustainability. We ensure that your investment mix aligns with your evolving goals and risk tolerance. For clients in their 30s: We provide education about typical market cycles (especially if this is their first experience with volatility). We coach clients to take advantage of their longer time horizons. We help younger investors see downturns as buying opportunities, not threats. In all cases, we are committed to helping clients invest with confidence, regardless of the headlines. Ready to Build a More Resilient Investment Strategy? Market volatility will always be part of investing, but it doesn't have to derail your financial goals. As your trusted financial advisor Coeur d'Alene team, we're here to help you navigate market uncertainty with confidence through our comprehensive financial planning approach. Contact Five Pine Wealth Management today to discuss how our investment philosophy and comprehensive financial planning approach can help you navigate market uncertainty with confidence. To see how we can help you support your financial goals, send us an email or call us at 877.333.1015.  Whether you're looking to preserve the wealth you've already accumulated or build a foundation for long-term growth, our team has the experience and commitment to help you stay focused on what matters most: achieving your financial goals.