Financial Issues Women Face

Planning for retirement is complicated. However, for a female investor, it’s even more complex. In addition to these difficulties, recent changes to legislation heavily impact Social Security, Medicare, and long-term care, which greatly affect the amount of taxes American women are set to pay in their retirement years. The need to find an advisor willing to spend time to focus on your individual circumstances and needs are of paramount importance. We're here to help you make the most of your retirement in a transparent and honest way.

Close the Gap

In an article from EBN a steep gender gap is reported: “Research from the TIAA Institute found that women have 30% less retirement savings than men, and separate research from AARP found that a quarter of women nearing retirement age don’t feel confident they’ll have enough money to support themselves.” There are several factors that play into these numbers. For example, women are more likely to take time off to raise children or to work part-time jobs. Also, with women having a longer life expectancy, retirement has to stretch further. Luckily, we can boost that number and help create some equity among both men and women.

Social Security Benefits

The first challenge can be maximizing Social Security benefits. A helpful response is to meet with advisors who understand the ins and outs of how Social Security is taxed to avoid the most common mistakes people make when claiming their benefits. We can assist with the intricacies of determining which claiming strategy is best for your situation—and how to claim a spousal benefit, even if you are divorced. If you’d like to continue working, we can specify how much income you can make and still draw Social Security.

Medicare & Long-Term Care

Secondly, understanding the differences between Medicare and Medicaid is key—along with discerning how long-term care planning can factor into the equation. Learning how Parts A, B, C, and D vary and understanding the cost for each part will get you started. Differentiating Medicare Advantage plans and determining which Medicare supplement is right for you are the next steps. Then, you need to learn the key features and government incentives for long-term care insurance and the strategies to pay for it.

Taxes in Retirement

The marginal tax system changes shape in your retirement years, and it’s to your detriment. There’s a lot to understand, such as the provisional income calculation on your Social Security payments, how Capital Gains and Dividends impact your overall tax liability, and how the IRA Required Minimum Distributions work and affect your tax liability. Keeping an eye on rising costs, it’s helpful to know when Medicare premiums can increase as a result of your income. Knowing the nine different pieces of the tax system and taking advantage of the tools used for tax control can help put you in a good place.

Meet Your Goals

Ideally, you want a tailored approach that takes your wants and needs into consideration. At Secure Future Advisors, our process starts with a candid conversation to answer questions, identify needs, and prioritize goals to improve your financial situation. Let’s design a plan intended to yield enough income to meet your needs during your retirement years. How can we help?