Historically, economic recessions have impacted men in the workforce more than women.\u00a0 During the Great Recession, men lost twice as many jobs as women. But the current economic crisis created by the Coronavirus pandemic has affected women more than men, as businesses have been closed in an attempt to stop the spread of the virus. Nearly 12 million women lost their jobs in just the four months between February and May 2020.<\/p>\n
This reflects the changing nature of the American workforce, and has revealed that women are more vulnerable to sudden economic shocks, because of the gender pay gap<\/strong><\/span><\/a> and their greater reliance on childcare and school to be able to work.<\/p>\n So, what are some steps you can take to improve your financial security in an uncertain economy?<\/p>\n During turbulent times you may feel anxious and uncertain, and you may be wondering if you\u2019ll still be able do all the things you\u2019ve been planning for. Can you still afford to remodel your kitchen? Will you still be able to help pay for your grandkids\u2019 college tuition? What about the cost of the annual family reunion?<\/p>\n It\u2019s important to remember that the financial plan you built together with your financial advisor isn\u2019t just a product, but the first step in an ongoing process that should last a lifetime. Any time your circumstances change, or the environment around you does, it\u2019s a great idea to check in with your advisor and update your plan.<\/p>\n The software tools your advisor uses are so sophisticated that they can quickly and easily incorporate all of the changes taking place, and give you the information you need to make informed choices. Things like lower investment returns, higher inflation, lower income or higher living expenses can all be factored into your plan.<\/p>\n Keeping your financial plan up to date can provide you with peace of mind, and a degree of comfort when the world around you is unsettled and life seems out of control.<\/p>\n As part of the financial planning process your financial advisor will have wanted to confirm that your estate plan was current.\u00a0 If you didn\u2019t have an estate plan in place already, your advisor should have strongly encouraged you to meet with an experienced attorney to have one drafted.<\/p>\n An estate plan is made up of a series of documents, each with a different purpose: a will, a durable power of attorney, a health directive and, possibly, a revocable living trust.<\/p>\n The purpose of your estate plan is to protect you and your assets if you become incapacitated or can\u2019t make decisions for yourself, and to ensure that your wishes are carried out when you pass away.<\/p>\n When times are uncertain and the environment around you seems unsettled, it can be comforting to know that you have things in order, and that you and your loved ones are protected. Checking in with your estate planning attorney for a quick but thorough review of your plan can provide true peace of mind.<\/p>\n During uncertain times, when it seems that everything around you is in turmoil, a natural reaction can be to make decisions based on your emotions.\u00a0 But the best thing for your long-term financial security is to keep in mind that crises of all types come and go, that economic recessions eventually end, that markets recover, and that \u201cthis, too, shall pass\u201d.<\/p>\n Your financial plan<\/a><\/strong><\/span> that you built together with your advisor is an objective, long-term roadmap for your financial security. If you have questions about the impact of the current environment on your plan\u2019s long-term viability, check in with your advisor and create some \u201cwhat if\u201d scenarios to consider.\u00a0 Odds are that your plan still works, and that the current turbulence won\u2019t have a material impact on your long-term financial security.\u00a0 Confirming that you\u2019re still on course and headed in the right direction \u2013 especially during uncertain times \u2013 can remove the emotions from your decision-making, and give you the context you need to make smart choices for the future.<\/p>\n <\/p>\n One potential benefit from an uncertain economy and a turbulent investment environment is the opportunity to proactively explore tax planning strategies.<\/p>\n For example, if your income is temporarily reduced \u2013 perhaps because you\u2019ve taken time off from your career to raise a family, or to care<\/a><\/strong><\/span> for a parent or loved one \u2013 your tax professional or financial advisor may recommend converting some of your pre-tax retirement<\/a><\/strong><\/span> savings to a Roth account, a so-called \u201cRoth conversion<\/strong><\/span><\/a>\u201d.\u00a0 A Roth conversion can also be attractive when the stock market is temporarily down, since you\u2019ll pay less in taxes because the amount converted is lower.<\/p>\n Tax loss harvesting<\/a><\/strong><\/span> is another potential strategy that can make sense if some of your investments have temporarily lost value.\u00a0 If you sell investments for less than what you paid for them, the loss you realize can be used to offset future taxable gains.\u00a0 Just be sure that when you buy an investment to replace the one you sold to generate the loss, you avoid the IRS\u2019s \u201cwash sale rule<\/strong><\/span><\/a>\u201d and buy something that provides the same asset class exposure you want without being considered the same or \u201csubstantially identical\u201d.\u00a0 Your tax professional or financial advisor can help you navigate this potentially rocky terrain.<\/p>\n Alternatively, if you own some highly appreciated investments \u2013 maybe stocks that you bought a long time ago, or that have risen in value much more than the overall market \u2013 and your plan includes financial support for someone who\u2019s in a lower tax bracket than you are, you may want to consider gifting those investments<\/a><\/strong><\/span>, so that the recipient can sell them and pay less tax than you would.<\/p>\n If you\u2019ve selected the right advisors to work with, they\u2019ll be a resource for you at any time, but especially when you\u2019ve got questions, or are feeling uncertain or anxious.<\/p>\n If your financial advisor is an experienced Certified Financial Planner professional, they\u2019ll be able to listen to your questions and concerns, incorporate them into your financial plan, and help you understand how the current economic and financial environment will impact you.<\/p>\n Your financial advisor can also work together with you and your tax and estate planning professionals to keep you on track to a secure and comfortable financial future, while ensuring that you\u2019re protected from risks that could jeopardize your plan.<\/p>\n","protected":false},"excerpt":{"rendered":" Historically, economic recessions have impacted men in the workforce more than women.\u00a0 During the Great Recession, men lost twice as many jobs as women. But the current economic crisis created by the Coronavirus pandemic has affected women more than men, as businesses have been closed in an attempt to stop the spread of the virus. […]<\/p>\n","protected":false},"author":2,"featured_media":4971,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_mi_skip_tracking":false,"footnotes":""},"categories":[3,6,11],"tags":[66,107,140],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/posts\/4970"}],"collection":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/comments?post=4970"}],"version-history":[{"count":0,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/posts\/4970\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/media\/4971"}],"wp:attachment":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/media?parent=4970"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/categories?post=4970"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/tags?post=4970"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Update Your Financial Plan<\/h2>\n
Review Your Estate Plan<\/h2>\n
Play the Long Game<\/h2>\n
Don\u2019t leave your future to chance. Contact our team at Springwater Wealth today to learn how\u00a0we can help you develop a financial plan for your peace of mind.<\/span><\/strong><\/a><\/h2>\n
Consider Proactive Tax Planning<\/h2>\n
Work with Your Financial Advisor<\/h2>\n