Financial Advice for Executive Women

As an executive woman, you may be juggling a challenging career along with responsibilities to family, friends and community, plus the need to maintain your mental and physical health and fitness. Amidst all these demands, it may not be easy to give your personal finances the attention they deserve. One concept that can help is a mnemonic known as “AMPLIFY.” We recommend using it to remember the steps to consider regarding your overall financial well-being.

A = Asset allocation/location

We believe it’s important to be diversified and allocate appropriately to meet your needs and goals (see “P” below for the plan). You’re busy, and sometimes it may fall to the bottom of the list, but we suggest making it a quarterly exercise to understand how your investments are allocated and determine if any rebalancing is required. From our experience, this is especially important if you have a concentration of stock with your employer. We believe that with a variety of accounts, such as 401(k), brokerage and Roth IRAs, it’s important to remember that asset location is important, too. Utilizing the right account to hold your investments could increase your after-tax return.

M = Manage taxes

As an executive, your income may not be constant throughout the year. You might have a bonus and restricted stock units (RSUs) that vest at the beginning of the year, and you may choose to exercise stock options at some point during the year. These all mean additional ordinary income to your bottom line, and many companies do not withhold enough tax on these items. We believe it’s important to work with your CPA to understand your tax situation throughout the year and take steps to mitigate the tax, if possible.

P = Plan

We believe having a financial plan is crucial to your long-term success. Your business and career likely have not thrived without a sound plan, and your finances are no different. Think of your financial plan as your personal Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis. Perhaps your strength is the ability to save your bonus, while a weakness could be keeping your adult child on the payroll. An opportunity could be if your company stock increases in value or you take a new role, while a threat could be getting let go from your job. How might each of your specific SWOT considerations play into the future of your financial life? It is helpful to have “what if” scenarios laid out so you can plan properly for them.

L = Legal documents

Where are your will, power of attorney and healthcare directive filed? Do you have the right people listed for executor, trustee, agent and guardian(s)? Do the documents reflect your current wishes, or were they created years ago and require updating? With the estate tax exemption due to halve in 2026, is there planning you need to do now to reduce future estate taxes?

I = Insurance

Think about the different types of insurance available, such as life, disability, health and long-term care. What coverage do you have? Do you need more (or less) to protect yourself and your family? Is your liability coverage appropriate for your net worth? As you continue to grow your wealth, we recommend reviewing your liability coverage annually to make sure it’s keeping up.

F = Funds

Investigate the expense ratios and the tax efficiency of the funds you’re invested in. Consult with your Corient Wealth Advisor about what they might recommend if you find your current selections are too expensive or tax-inefficient. Ask them to help ensure that the funds you hold are appropriate for your time horizon, risk tolerance, financial objectives and other personal needs and preferences.

Y = You

We believe the most important part of “amplifying” your financial journey is making it about you. Your goals will likely be different from your colleague down the hall or your neighbor down the street. Partner with someone who understands you and works to fulfill your goals. Don’t add more pressure to your life by doing this on your own. Get expert support from a professional so that you can take care of yourself and your loved ones.

As a busy executive, you may find that it’s easy to let your financial life take a backseat to the demands of your career. Take care to AMPLIFY your financial life by following these steps.

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