The Peace of Wealth

Should You Consider a Backdoor Roth IRA?

Tue, 15 Sep 2026 05:35:39 GMT

If you earn too much to contribute directly to a Roth IRA, you may have heard about using a Backdoor Roth IRA instead. The basic idea is fairly simple: you make a nondeductible contribution to a traditional IRA and then convert that money to a Roth IRA.

But whether you should do it is a different question.

When I’m looking at this with a client, I first want to know what she already has in her IRAs, what retirement plans are available through work, and whether there are any tax consequences we need to think through before making the contribution.

For some high earners, a Backdoor Roth IRA can be a useful way to continue putting money into a Roth account. For others, existing IRA balances can make the strategy more complicated than they expected.

A Backdoor Roth IRA may be worth considering if you:

Earn too much to contribute directly to a Roth IRA.
Expect to be in a similar or higher tax bracket later.
Want to build more tax-free retirement income.
Have a long time horizon before retirement.
Have reviewed how it fits with your other accounts and priorities.

What Is a Backdoor Roth IRA?

A Backdoor Roth IRA is a way for someone whose income is too high to contribute directly to a Roth IRA to potentially get money into one.

It generally involves two steps:

Make a nondeductible contribution to a traditional IRA.
Convert the money from the traditional IRA to a Roth IRA.

There isn't a separate account called a “Backdoor Roth IRA.” You're using existing IRA rules to make a traditional IRA contribution and then completing a Roth conversion. For 2026, the total amount you can contribute across your traditional and Roth IRAs is $7,500, or $8,600 if you're age 50 or older.

The ability to contribute directly to a Roth IRA depends on your income. For 2026, Roth IRA contributions begin to phase out at modified adjusted gross income of $153,000 for single and head-of-household filers and $242,000 for married couples filing jointly. Direct Roth IRA eligibility is eliminated at $168,000 and $252,000, respectively.

That income restriction is one reason higher earners start looking at the Backdoor Roth strategy.

Who Should Consider a Backdoor Roth IRA?

A Backdoor Roth IRA can be a valuable strategy for many high-income earners, particularly those who have been phased out of making direct Roth IRA contributions.

I would generally look at a Backdoor Roth IRA when someone:

Earns too much to contribute directly to a Roth IRA.
Expects to be in the same or a higher tax bracket later in life.
Wants to build more tax-free income for retirement.
Have many years before you'll need the money.
Have already built a solid foundation with other retirement savings.
Doesn't have significant pre-tax IRA balances that could create an unexpected tax consequence

That last point is important. If you don't have money in traditional, SEP, or SIMPLE IRAs, a Backdoor Roth can be relatively straightforward from a planning standpoint. If you already have a large pre-tax IRA, I would want to look at that before doing anything.

This is where Backdoor Roth IRAs can get more complicated.

You can't simply choose to convert only the after-tax dollars in one traditional IRA while ignoring pre-tax IRA money you have elsewhere.

When determining how much of an IRA distribution or conversion is taxable, the tax calculation takes your applicable traditional IRA balances into account. For this purpose, traditional IRAs generally include traditional SEP and SIMPLE IRAs as well.

For example, let's say you've accumulated $93,000 in a Rollover IRA and then you want to make a new contribution of $7,000 because you want to do a Backdoor Roth. You now have $100,000 total. The IRS sees that 93% of your total IRA balance is pre-tax. Therefore, if you convert $7,000 to a Roth, 93% of that conversion ($6,510) will be taxable as ordinary income. This can lead to a surprise tax bill that negates much of the strategy's immediate benefit.

This is one of the first things I would check before having a client move forward with a Backdoor Roth IRA.

Having an existing IRA doesn't automatically mean you shouldn't do it. It means we need to understand what you own first and what the tax impact could be.

To avoid this trap, some professionals choose to "roll in" their existing pre-tax IRAs into their current employer's 401(k). Since 401(k) balances are not counted in the Pro-Rata calculation, this "clears the deck" for a clean Backdoor Roth conversion.

It is a strategic move that requires coordination with your HR department and an understanding of your plan’s rules, but for many, it is the key to unlocking the Backdoor Roth without a massive tax hit.

What Is the Pro-Rata Rule?

Earning too much to contribute directly to a Roth IRA doesn’t automatically mean you should do a Backdoor Roth.

Before recommending one, there are a few things I’d want to look at:

You already have a large pre-tax IRA balance. If you have money in a traditional, SEP, or SIMPLE IRA, the pro-rata rule could make part of your Roth conversion taxable.
You have other retirement savings opportunities you’re not fully using. If you have an employer retirement plan available, I’d want to look at where your next dollar of savings makes the most sense rather than automatically putting it into a Backdoor Roth.
The contribution would stretch your cash flow. I wouldn’t want someone putting additional money into an IRA if it leaves her short on cash or takes money away from something she needs the money for sooner.

The fact that you can use a strategy doesn’t necessarily mean it should be the next thing you do.

When Might a Backdoor Roth IRA Not Make Sense?

Can You Do a Backdoor Roth IRA Every Year?

Potentially, yes.

A Backdoor Roth isn't necessarily a one-time strategy. Someone who remains above the income limits for direct Roth IRA contributions may consider making nondeductible traditional IRA contributions and converting them to a Roth IRA in future years as well.

But I would still review the situation each year.

Your income can change. You may roll an old 401k into an IRA. Your spouse's accounts could change. Tax rules and contribution limits can change too.

Something that worked cleanly last year deserves another look before you automatically repeat it.

Where Does a Backdoor Roth IRA Fit Into Your Financial Plan?

I don’t look at a Backdoor Roth IRA as something everyone needs to check off a list.

If we’re considering one, I want to know what you’re already saving, where that money is going, and what we’re trying to accomplish by adding more money to a Roth account.

That’s also why I look at a Backdoor Roth as part of your comprehensive financial plan , rather than as a separate tax strategy.

For someone who is already saving heavily into a pre-tax 401(k), adding money to a Roth IRA may give her another type of account to draw from later. For someone else, there may be a better use for the money right now. She could need more cash reserves, have a large upcoming expense, or have another retirement account that deserves attention first.

As retirement gets closer, the mix of accounts you’ve built can also affect how you eventually create income from your savings and how much flexibility you have around taxes.

Where Does a Backdoor Roth IRA Fit Into Your Financial Plan?

If you're considering a Backdoor Roth IRA, these are some of the questions I'd want to work through first:

Is my income too high to contribute directly to a Roth IRA?
Do I have money in any traditional, SEP, or SIMPLE IRAs?
Have I made nondeductible IRA contributions in previous years?
Could the pro-rata rule make part of my conversion taxable?
Am I already taking advantage of the retirement plan available through my employer?
Do I have the cash available to make the contribution without taking away from other priorities?
How would adding more money to Roth accounts fit with the rest of my retirement savings?

The mechanics of a Backdoor Roth IRA aren't usually the part I'm most interested in. I want to make sure we've looked at the accounts you already have and understand the tax consequences before moving money around. .

If you're considering a Backdoor Roth IRA, these are some of the questions I'd want to work through first:

Is my income too high to contribute directly to a Roth IRA?
Do I have money in any traditional, SEP, or SIMPLE IRAs?
Have I made nondeductible IRA contributions in previous years?
Could the pro-rata rule make part of my conversion taxable?
Am I already taking advantage of the retirement plan available through my employer?
Do I have the cash available to make the contribution without taking away from other priorities?
How would adding more money to Roth accounts fit with the rest of my retirement savings?

The mechanics of a Backdoor Roth IRA aren't usually the part I'm most interested in.

I want to make sure we've looked at the accounts you already have and understand the tax consequences before moving money around.

Questions to Ask Before Doing a Backdoor Roth IRA

 Have Questions About a Backdoor Roth IRA?

If you're wondering whether a Backdoor Roth IRA makes sense for you, we can look at the IRAs and retirement accounts you already have and whether there are tax issues to consider before you do it.

Schedule a Conversation

About the Author

Renee Cohen is a financial planner and founder of Nexa Wealth Planning , a Los Angeles-based financial planning firm. She works with women, professionals, couples, and business owners who want help making decisions around retirement, investments, taxes, equity compensation, and the rest of their financial lives

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RSUs, Stock Options & ESPPs: A Financial Planning Guide for Women

Wed, 09 Sep 2026 21:25:52 GMT

If a meaningful part of your compensation comes in the form of company stock, it can quickly become one of the most important parts of your financial life. It can also become one of the hardest parts to make decisions around.

Should you sell your RSUs when they vest or hold them? Exercise stock options now or wait? Participate in your ESPP? How much company stock is too much? And what should you do with the money if you decide to sell?

When I help clients think through these decisions, I’m not looking at the stock by itself. I’m looking at how much company stock they own, what else they’re invested in, what taxes may be coming, and what they want the money to help them accomplish.

Those are the questions that are more useful than simply understanding how your equity plan works.

What Are RSUs?

Restricted stock units, or RSUs, are a common form of equity compensation. Your employer promises to give you shares of company stock once certain conditions are met, usually after you stay with the company for a specified period of time.

For most employees, the important tax event happens when the RSUs vest and the shares are delivered to you. The value of the shares is generally treated as compensation and included in your taxable wages.

If you continue holding the stock after that, any additional increase or decrease in value generally affects the capital gain or loss when you eventually sell.

That means there are really two separate decisions:

What happens when the RSUs vest?
What do you want to do with the shares after they become yours?

Should You Sell Your RSUs When They Vest?

There is no rule that says you should always sell your RSUs as soon as they vest. And there is also no rule that says holding them is the better choice.

When I’m looking at this with a client, one of the first questions I’ll ask is:

If your employer had paid you the same amount in cash, would you use that cash to buy shares of your company today?

If the answer is no, that’s worth paying attention to. From there, I want to understand how much company stock you already own, what else you’re invested in, whether more shares are scheduled to vest, and what other things you could be doing with the money.

For example, maybe you’re trying to save for a home, increase your retirement contributions, build investments outside of your company stock, or simply reduce how much of your net worth is tied to your employer.

Selling some or all of your vested RSUs doesn’t mean you think your company is a bad investment. You may simply decide that you already have enough of your financial life tied to one company.

How Much Company Stock Is Too Much?

There isn’t one percentage of company stock that is right for everyone.

When I look at this with a client, I’m not only looking at the shares she owns today. I’m also looking at how much of her income comes from the company, whether she has more RSUs scheduled to vest, whether she owns stock through an ESPP or stock options, and what the rest of her investments look like.

You may already have more tied to your employer than you realize. Your salary comes from the company. You may receive a bonus based on company performance. You may have unvested RSUs or options that could become a larger part of your net worth over time. And then you may also own company stock in your investment portfolio.

That can work very well when the company is doing well. But it also means a decline in the company’s stock could affect your investments at the same time that your compensation or job feels less secure.

I’m less interested in finding a “perfect” percentage than understanding how much of your financial life depends on one company and whether you’re comfortable with that.

How Are RSUs Taxed?

For most employees, RSUs are generally treated as income when they vest and the shares are delivered. Taxes are usually withheld at that time.

But just because taxes were withheld doesn’t mean enough was withheld.

This is something I watch when a client has a larger vest during the year, especially if she’s also received a bonus, gotten a raise, or has other income coming in.

Rather than waiting until tax time to find out there’s a bigger bill than expected, I’d rather look at it during the year. If the withholding looks low, there may still be time to make an adjustment or an estimated tax payment.

What are Stock Options?

Stock options give you the right to purchase company shares at a set price, often called the exercise price or strike price. Unlike RSUs, stock options don’t simply turn into shares once they vest. You have to decide whether and when to exercise them.

Stock options also have an expiration date. ISOs generally cannot remain exercisable for more than 10 years from the grant date , and your actual exercise window may be shorter depending on your plan or what happens if you leave the company.

That creates a different set of questions:

Is the current stock price above the exercise price?
How much cash would it take to exercise?
What taxes could result?
Would you hold the shares after exercising or sell them?
How long do you expect to stay with the company?
What happens to the options if you leave?

When I’m looking at stock options with a client, these are the things I want to understand before we decide whether exercising now makes sense. I also want to know how much company stock she already owns, what other equity is expected to vest, and what she would actually want to do with the shares after exercising.

Two common types of employee stock options are incentive stock options (ISOs) and nonqualified stock options (NSOs or NQSOs) . Their tax treatment is different, so knowing which type you have matters before you make an exercise decision, which is why having a strategy is important.

How Are Incentive Stock Options (ISOs) Taxed?

ISOs can have favorable tax treatment, but they can also create a tax issue people don’t always expect.

When you exercise an ISO, you generally don’t recognize ordinary income for regular federal income tax purposes at that time. However, the difference between the exercise price and the value of the stock when you exercise can count as income when calculating the alternative minimum tax (AMT).

That means you could potentially have a tax bill related to the exercise even though you haven’t sold the shares or received any cash from them.

This is why I would want to run the numbers before exercising a large amount of ISOs.

For example, it may make sense to exercise some options this year and additional options in future years rather than exercising everything at once. We would also want to look at how much cash you need to exercise, the potential tax impact, how much company stock you would own afterward, and how long you plan to hold the shares.

The timing of when you eventually sell matters too. ISOs have specific holding-period requirements that can affect whether the gain receives more favorable capital-gains treatment, so this is an area where I would also coordinate with your tax professional when the numbers are significant.

How Are Nonqualified Stock Options (NSOs) Taxed?

When you exercise an NSO, the difference between what you pay for the shares and what they’re worth at the time is generally treated as income from your job .

Your employer typically reports this amount on your tax forms, and it may be included in your paycheck for tax withholding. If you continue to hold the shares after exercising, any further increase or decrease in value generally becomes a capital gain or loss when you eventually sell.

But taxes are only part of the decision.

Before exercising, I’d want to know how much cash you’ll need, how much you may owe in taxes, and what you plan to do with the shares afterward.

For example, if exercising your options would require $50,000 and leave you with another $100,000 in company stock, we’d want to look at that alongside the company stock you already own and any RSUs or other equity that may still be coming.

Just because you can exercise an option doesn’t mean you need to keep all the shares.

What Happens to Stock Options If You Leave Your Job?

If you’re thinking about leaving your company, your equity plan is something I’d want you to look at before your last day , not after.

Depending on your plan, you may have a limited amount of time to exercise vested stock options after you leave. You may also have unvested equity that you’ll give up when you go.

Before making the move, I’d want you to know what you’re leaving behind and what decisions the job change will trigger.

That means looking at which options are vested, which grants will be forfeited, when your exercise window ends, how much it would cost to exercise, and what the potential tax consequences could be.

And if you’re considering another job offer, I’d look at the value of the equity you’re walking away from as part of the compensation decision too. A higher salary at the new company doesn’t tell you the whole story if you’re giving up a meaningful amount of equity to leave.

Key Takeaways:

An employee stock purchase plan, or ESPP, lets you purchase company stock through payroll deductions. Many plans allow employees to buy shares at a discount. Some also have a lookback feature that can make the purchase price even more favorable.

If you have the cash flow to participate and your plan offers an attractive discount, I generally think an ESPP is a benefit worth taking a close look at.

But participating in the ESPP and deciding how long to hold the shares are two different decisions.

When I look at an ESPP with a client, I want to understand the discount, whether there is a lookback provision, how much she can comfortably contribute from each paycheck, how much company stock she already owns, and what she plans to do with the shares after they're purchased.

Certain qualified ESPPs under Section 423 also have specific tax rules that depend in part on when you sell the shares, so that's something to understand before making a decision about when to sell.

Is an ESPP Worth It?

If your company offers a meaningful discount and you have the available cash flow, participating in an ESPP can be a very valuable employee benefit.

The bigger question is often not simply whether to participate. It's what you do with the stock afterward.

If you're already receiving RSUs or have stock options, continuing to hold every share you purchase through the ESPP can gradually leave more of your net worth tied to your employer than you intended.

So I would look at:

How much can you comfortably contribute without taking money away from other priorities?
What discount or lookback does the plan offer?
How much company stock do you already own?
Are more RSUs or other equity expected to vest?
Do you plan to sell the ESPP shares or continue holding them?
What tax rules apply when you eventually sell?

You can take advantage of a valuable employee benefit without deciding that you also want to build a large long-term position in your company's stock.

If you have RSUs, stock options, or an ESPP and have questions about what to do with them, let’s talk. We can look at what you have, how much of your finances are tied to your company, and whether there are decisions you should be thinking about now. Schedule a Conversation

What Is an ESPP?

By the time someone has received RSUs, stock options, or ESPP shares for several years, company stock can make up a significant part of her net worth without her ever intentionally deciding to build such a large position.

When I’m looking at this with a client, I’m not trying to predict where the stock price will go next. I want to know how much she owns today, what else is expected to vest, and how much of her overall financial picture is already tied to the company.

Then we can look at what keeping the shares means compared with selling some of them.

For example, selling could provide part of a down payment on a home, give you money to invest outside your company, or help fund another goal you’ve been putting off. You may also decide that you’re comfortable continuing to own some company stock, but you don’t want the position to keep getting larger every time another grant vests.

We can put numbers around those choices and see what each one means for the rest of your financial plan. What I can’t reliably tell you is whether your company’s stock will be worth more next year.

What Is an ESPP?

I don’t think the decision should end with selling the stock. Before selling, I like to know what we want the money to do next.

For a client with $75,000 of RSUs vesting this year, we might look at several possibilities. She could be saving for a home, have most of her investments tied up in retirement accounts, need to build up her cash reserves, or have no near-term need for the money and be better served investing it in a more diversified portfolio.

Knowing where the money would go gives us something useful to compare against keeping the shares. If selling $50,000 of company stock means you can fund a goal, strengthen another part of your finances, or reduce how much of your net worth is tied to one company, we can evaluate that tradeoff.

The question becomes less about whether you should sell the stock and more about which use of that money makes the most sense for you.

What Should You Do With the Money If You Sell?

Equity compensation should be considered alongside your taxes, investments, retirement goals, cash needs, and other financial priorities.

When I’m looking at equity compensation with a client, I’m thinking about what else is happening in her financial life at the same time.

Are we trying to reduce taxes this year? Is retirement getting closer? Is she buying a home? Does she need more money invested outside of her company? Is a large vest coming? Is she considering leaving her job? Are there options that need attention?

Those answers help us decide what to do with the equity.

For one person, that may mean selling RSUs as they vest and investing the proceeds elsewhere. For another, it could mean exercising options over several years. Someone else may decide to participate in her ESPP but regularly sell the shares so her company-stock position doesn’t continue to grow.

The goal is to make sure your equity decisions work with the rest of your financial plan rather than creating a separate strategy around your company stock.

How Does Equity Compensation Fit Into Your Financial Plan?

If you receive RSUs, stock options, or ESPP shares, these are some of the questions I’d want you to think through:

How much of my net worth is tied to my company’s stock?
What should I do with my RSUs when they vest?
What could the tax impact be before my next vest or option exercise?
If I sell company stock, what do I want that money to do next?
How does my company stock fit with the rest of my investments?
What happens to my options or unvested equity if I leave the company?
Am I making a new decision every time something vests, or do I have a plan for how I’ll handle my equity going forward?

You don’t need to have the answer to every one of these questions. These are the things I would want to understand with a client before making a larger decision around company stock.

Questions to Ask About Your Equity Compensation:

Have Questions About Your Company Stock?

Frequently Asked Questions

If you have RSUs, stock options, or an ESPP and have questions about what to do with them, let’s talk.

We can look at what you have, how much of your finances are tied to your company, and whether there are decisions you should be thinking about now.

Schedule a Conversation

Should I sell my RSUs as soon as they vest?

Not necessarily. The right answer depends on how much company stock you already own, your tax situation, your goals, and whether you would choose to buy the stock today if you had received the same amount in cash.

Are RSUs taxed twice?

RSUs are generally taxed as compensation when they become taxable to you, and then any additional gain or loss after that may be subject to capital gains tax when you sell the shares. That is different from being taxed twice on the same income.

Can stock options create a tax bill before I sell the shares?

They can. In particular, exercising incentive stock options can create an AMT adjustment even if you continue holding the shares. Nonqualified stock options can also create compensation income when exercised, depending on the circumstances.

Is it risky to have too much company stock?

It can increase concentration risk because your income and a large part of your investments may depend on the same company. The amount that is appropriate depends on the rest of your financial situation and how comfortable you are with that risk.

Can a financial planner help with RSUs and stock options?

Yes. A financial planner can help you look at equity compensation alongside your taxes, investments, cash flow, retirement planning, and other goals. When an equity decision has significant tax consequences, I also think it can make sense to coordinate with your CPA or tax professional.

About the Author

What Is Comprehensive Financial Planning?

Thu, 27 Aug 2026 21:23:11 GMT

Comprehensive financial planning looks at more than your investments. It brings together your retirement, taxes, investments, cash flow, insurance, estate planning, and other goals so you can understand how one decision may affect another.

You may benefit from it when your finances have become more complex, when you're balancing several goals at once, or when you're making decisions that affect more than one part of your financial life.

You can be doing a lot of things right financially and still wonder whether all of it is actually working together. Maybe you're contributing to your 401k, investing outside of retirement, keeping some cash in savings, and paying down your mortgage. You might also have company stock, a couple of old retirement accounts, a business, college costs coming, or a retirement that suddenly feels closer than it used to.

At some point the questions start to overlap. Do you put more toward retirement or keep more cash available? Sell the company stock or hold it? Make a tax move this year, or wait? Each answer seems reasonable in isolation, and then you realize the decisions are all connected.

That's where comprehensive financial planning becomes useful. Instead of choosing what looks best for one account or one goal, you get to see what else a decision touches before you make it.

What is Comprehensive Financial Planning?

Comprehensive financial planning is a way of looking at the different parts of your financial life together rather than focusing only on your investments or one particular goal.

Depending on your situation, a financial plan may include:

Cash flow and savings
Retirement planning
Investment management
Tax planning
Insurance and risk management
Estate planning
Employer benefits
Equity compensation
Education planning
Major purchases and other financial goals

Not everyone needs help with every one of these areas at the same time. Someone in her 40s may be trying to decide how much to put toward retirement while paying for children, traveling, and considering a home renovation. While someone approaching retirement may be much more focused on Social Security, taxes, healthcare, and how to turn investments into income.

The pieces change depending on what's happening in your life.

What makes the planning comprehensive is that we pay attention to how those pieces affect each other.

What Does That Look Like in Real Life?

Say you receive a large amount of company stock and you're deciding whether to sell it. On the surface, that's an investment question: should I sell or hold it?

But selling may also affect your taxes. Holding may leave too much of your wealth tied to one company. The proceeds could help fund another goal. And if you're already receiving more company stock each year, that matters too. One decision has quickly turned into several.

Retirement is another good example.

You may start with: can I retire at 60?

To answer that, we need to know what you expect to spend, where your income will come from, when you may claim Social Security, what healthcare will cost before Medicare, how your withdrawals will be taxed, how your investments are positioned, and how long your money may need to last.

The answer doesn't live in your 401k balance.

That's what comprehensive planning is meant to help with: seeing the other decisions connected to the question you're trying to answer.

What Is the Difference Between Investment Management and Comprehensive Financial Planning?

Investment management focuses primarily on your portfolio: how your money is invested, how much risk you're taking, whether your investments are diversified, and whether your portfolio still fits what you're trying to accomplish. Comprehensive financial planning includes your investments, but it goes further.

You can have a well-managed investment portfolio and still have questions such as:

Am I saving enough for retirement?
Should I be using a Traditional or Roth 401k?
How much cash should I keep?
What should I do with my RSUs?
When should I take Social Security?
Can I afford to help my children financially?
Should I pay off my mortgage before retirement?
Are there tax decisions I should be making this year?
Does my estate plan still reflect what I want?

Your investments are one part of answering those questions. They're rarely the whole answer.

For me, investment management works best when the investments have a job to do within the financial plan .

How Do Taxes Fit Into Comprehensive Financial Planning?

Taxes are a good example of why financial decisions need some coordination.

You don't necessarily need a complicated tax strategy . But as your income and wealth grow, taxes tend to show up in more of your decisions.

Selling investments can create capital gains. RSUs can increase taxable income or exercising options can create surprising tax implications without a strategic strategy. Choosing between Traditional and Roth retirement contributions affects when you pay tax. Retirement withdrawals can affect your tax bill and sometimes other costs tied to income.

So when I'm helping a client think through a financial decision, one of the questions we're asking is simply: what does this do to your taxes?

Sometimes saving taxes today makes sense. Other times, paying more tax now may give you more flexibility later. The tax answer shouldn't automatically make the decision for you, but you should understand it before you decide.

How Does Retirement Fit Into a Comprehensive Financial Plan?

Retirement planning starts long before you retire.

Earlier in your career, we may be deciding how much to save, which accounts to use, and how retirement fits alongside the other things you want to do with your money.

As retirement gets closer, the questions change. Now we may be talking about:

When can I afford to retire?
How much can I spend in retirement without running out of money?
When should I start taking Social Security?
How much should I plan to spend on healthcare in retirement?
How will my taxes change when I retire?
Which accounts should I withdraw from first in retirement?
How should my investments change as I get closer to retirement?
What happens to my retirement plan if the market drops after I retire?
If I'm married, what happens financially if one of us lives much longer than the other?

The focus moves from accumulating money to figuring out how that money will support your life.

If you're already wondering whether you've saved enough, I go much deeper into this in How Long Will My Money Last in Retirement?

When Is It Helpful to Have a Financial Planner Looking at the Whole Picture?

You don't need to reach a certain age or net worth before financial planning becomes useful. A better indicator is often the number of decisions you're trying to coordinate.

You may benefit from comprehensive financial planning if:

You're balancing several financial goals at the same time.
Your income has increased and you're not sure what to do with the additional money.
You have accounts spread across several employers or institutions.
You're receiving RSUs, stock options, or other equity compensation.
Taxes are becoming part of more of your financial decisions.
Retirement is getting close enough that you want to know whether you're on track.
You own a business or have multiple sources of income.
You and your spouse have different incomes, benefits, or retirement timelines.
You're going through a divorce, inheritance, career change, business sale, or another major life change.
You're doing well financially but aren't sure what deserves your attention next.

That last one matters.

Many people who work with a financial planner aren't in financial trouble. They've saved. They've invested. They've made thoughtful decisions for years. Eventually, though, there can be enough moving pieces that having another person help you think through them becomes valuable.

If you're wondering whether you've reached that point, I've written more about it in How Do You Know It's Time to Hire a Financial Planner?

What Does Comprehensive Financial Planning Look Like at Nexa Wealth Planning?

When I first meet with someone, I want to understand what brought them in and what they’re trying to figure out. Maybe retirement is getting closer and they want to know if they’re on track. Maybe they’re earning more but aren’t sure where the extra money should go. Or they may have accumulated several accounts over the years and want to know whether they’re using them as effectively as they could be.

From there, we look at what they already have in place and where there may be opportunities to make changes. That could mean adjusting how much they’re saving, looking at how their accounts are invested, planning ahead for taxes, or deciding how to balance retirement with other things they want to spend money on.

And I don’t assume the answer is always to save more.

Sometimes a client can afford to travel more, help their children, renovate the house, or retire earlier than they thought. Other times, the numbers show us that spending more in one area means making an adjustment somewhere else.

This is where I think financial planning becomes especially useful. We can put numbers around the choices so you can see what each one means before you make it. If you’d like to see what’s included when we work together, you can learn more about my comprehensive financial planning services here .

If you’d like to talk through what’s going on in your financial life and see whether comprehensive planning could be helpful, schedule an introductory conversation . We can start with what’s happening in your life and what you’d like help figuring out.

Is comprehensive financial planning the same as investment management? No. Investment management focuses on how your money is invested. Comprehensive financial planning looks beyond your portfolio to things like retirement, taxes, cash flow, insurance, estate planning, and the other goals you're saving for. Your investments are still an important part of the plan, but they're not the only part.

Is comprehensive financial planning only for wealthy people? No. You don't need to reach a certain net worth before financial planning can be useful. It may make sense when you have several financial decisions to manage at the same time, like multiple accounts, equity compensation, higher income and taxes, competing goals, an approaching retirement, or a major change in your life.

The question isn't only how much money you have. It's whether you're at a point where you'd benefit from help deciding what to do with it.

Can I get comprehensive planning as a one-time project, or only ongoing? Yes. Some people want help answering a specific set of questions or putting a financial plan together, while others want an ongoing relationship with an advisor. A one-time project may work well when you have a fairly defined set of questions. Ongoing planning can make more sense when you have decisions coming up throughout the year or your financial situation changes regularly.

Does a financial plan change over time? Yes, and it should. A financial plan is based on your life and finances today, and neither will stay exactly the same. Your income may change. You may change jobs, buy a home, have children, receive an inheritance, sell a business, or decide to retire earlier than you expected. Markets and tax laws change too. You don't need to predict all of those things in advance. As your life changes, your financial plan should be revisited and adjusted with it.

Frequently Asked Questions:

Renee Cohen, CFP® is the founder of Nexa Wealth Planning, a fee-based financial planning firm in Los Angeles serving women and couples across California and virtually nationwide.

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Financial Planning for Women: A Guide for Every Stage of Life

Thu, 13 Aug 2026 04:01:32 GMT

Financial planning for women is not tied to a particular age or account balance. What needs your attention changes as your career, income, family, responsibilities, and priorities change.

Depending on where you are right now, that may mean:

Getting savings, retirement contributions, and basic protections in place
Deciding how to divide money among retirement, a home, travel, children, caregiving, or another goal
Managing higher income, taxes, equity compensation, or accounts that have accumulated over time
Turning savings into retirement income you can actually live on
Reworking your finances after divorce, widowhood, an inheritance, a career shift, or another major change

You do not need to get every financial decision right at once. What matters more is knowing what deserves your attention now, what can wait, and how the decisions you are making today may affect your choices later.

Your Financial Life Will Not Follow a Straight Line

You can make thoughtful decisions and still find yourself somewhere you did not expect to be five or ten years later.

Your income changes. Careers take turns. You get married or do not. You have children, care for parents, start a business, get divorced, receive an inheritance, or realize you want a different version of retirement than the one you pictured at 35.

That is why I do not think financial planning for women can be reduced to a checklist based on age.

A 40-year-old business owner may be thinking about something entirely different from a 40-year-old executive with stock compensation, a working mother, or a woman returning to work after several years away.

Most financial advice starts by telling you what you should be doing next: save more, invest differently, pay down debt, buy insurance, make a will.

Those things may all matter. But one decision can affect several others.

A decision about work can affect your taxes, retirement savings, insurance, and the timing of other goals. A decision to buy a home, help a parent, take time away from work, or retire sooner can change what is possible elsewhere.

So instead of asking: " What should a woman my age be doing with her money?”

I think a better question is: “What decisions are in front of me now and what else do they affect?”

That is where planning becomes useful. It gives you a way to see the decisions in front of you, understand what they may change, and make choices that fit the life you want to have. The stages below are not meant to tell you where you should be. They are a way to notice the questions, tradeoffs, and decisions most likely to deserve your attention right now.

Stage 1: Getting the Basics in Place

This is not necessarily your twenties. It is the stage when you are beginning to earn, save, invest, and make more of your own financial decisions.

You may be managing student loans, a steady paycheck, workplace benefits, and savings decisions for the first time.

At this stage, it is usually helpful to have:

A cash reserve for unexpected expenses
Regular retirement contributions
An understanding of your workplace benefits
A plan for student loans or other debt
Good credit habits
Appropriate health, disability, and life insurance coverage
Basic estate documents and beneficiary designations

At this stage, I wouldn’t worry about getting every decision exactly right. You don’t need the perfect investment strategy or to know exactly what retirement will look like decades from now. Start by saving consistently, taking advantage of the benefits available to you, and building some financial breathing room. You can make adjustments as your income grows and life changes.

Stage 2: When Several Goals Compete for the Same Dollars

This is often when money starts to feel harder, even when you are earning more than you used to.

You may be trying to save for retirement while buying a home, paying for childcare, helping family, traveling, starting a business, or considering a career change. You may be supporting children now while also beginning to think about your own parents’ needs later.

The list can be long:

Retirement
A home or a move
Children and education costs
Travel and experiences
Family support or caregiving
A career transition
Starting or growing a business
Building more flexibility into your life

The hard part is rarely finding a list of things you could do with your money. It is deciding what deserves to come first when several things matter at the same time.

There is not always one mathematically perfect answer. Putting every available dollar toward retirement may look ideal on paper, but it could mean giving up something that matters deeply to you now. On the other hand, treating retirement as whatever is left over can create a problem later.

These decisions involve tradeoffs, timing, and what you want your money to make possible now, not only later.

Seeing the tradeoff clearly does not make the decision easy. But it keeps you from making it by default. A useful question to ask is:

What am I trying to make room for now, and what am I unwilling to sacrifice for a future goal?

That does not tell you exactly how every dollar should be allocated. But it gives you a clearer place to begin when every option feels important.

Stage 3: When Money Has More Moving Parts

At some point, your financial life can become more complicated without any one dramatic change.

Maybe your income has increased. Your bonus is larger. You have equity compensation. You have accumulated old 401ks from past jobs, a taxable investment account, and more cash than you know what to do with. Taxes start to feel more consequential.

The decisions are no longer just about whether to save. They are about where, when, and how.

Questions at this stage may include:

Am I using my 401(k) and other workplace benefits well?
Does a Backdoor Roth IRA make sense for me?
What should I do with restricted stock units or company stock?
Am I holding too much of my employer’s stock?
How much cash should I keep available?
Should I consolidate old retirement accounts?
Are there tax decisions I should be making before year-end?
How should my investments, taxes, and upcoming goals work together?

More moving parts do not necessarily mean your finances need to become more complicated. But they do mean one decision can start affecting several others.

A decision about equity can affect taxes. A tax decision can affect cash flow. A career change can affect benefits, retirement savings, insurance, and the timing of other goals.

Having everything coordinated does not mean having a spreadsheet for every part of your life. It means knowing which decisions affect the others before you make them.

A useful question to ask is:

Are my accounts, taxes, investments, and benefits making decisions easier or creating more to keep track of?

If the answer is “more to keep track of,” that does not mean you have done anything wrong. Your financial life may simply have reached the point where looking at one account or decision at a time no longer gives you the full answer.

Stage 4: When Retirement Is No Longer “Someday”

Eventually, the retirement question changes.

It is no longer only: “Am I saving enough?”.

It becomes: “How is all of this going to become an income I can actually live on?”

That shift brings a different set of decisions:

What will retirement actually cost?
When do I want work to become optional?
When should I claim Social Security?
Which accounts should I use first?
How will taxes change once my paycheck stops?
How will I pay for health care before and during retirement?
How long does my money need to last?
What happens if one partner dies, needs care, or retires earlier than expected?

Retirement planning goes beyond reaching a certain account balance. You need to understand how your income, spending, taxes, health care, investments, and longevity may work together over a retirement that could last several decades.

If you are starting to ask these questions, I go deeper into them in How Long Will My Money Last in Retirement? , including how I help clients think through spending, income sources, taxes, and the risks that can affect a retirement plan.

A useful question to ask is:

Do I know what my savings are meant to do for me or only how much I have accumulated?

The difference matters. An account balance tells you how much you have. A retirement plan helps you understand what that money may allow you to do.

Stage 5: When Life Changes and the Plan Needs to Change

Sometimes your financial life changes because of a decision you made. Other times, the decision gets made for you.

Divorce, widowhood, caregiving, an inheritance, a job loss, a new job, a move, or time away from work can all change what you need from your money.

In those moments, I generally do not think the first priority is making every financial decision immediately. I would start by sorting through:

What changed
What needs attention now
What can wait
Which decisions are permanent and which can be revisited later
Who needs to be involved

For example, an inheritance may require tax and investment decisions, but it may also raise questions about family, generosity, work, or what you want the money to make possible.

A divorce or widowhood may require immediate attention to cash flow, insurance, and account ownership before you make longer-term investment decisions.

A career change may create a short-term benefits decision while also raising bigger questions about how you want to work and what that means for the goals you have been saving toward. Your financial plan should be able to change when your life does. It should not depend on everything going according to a plan you made years ago.

A question to ask is: What needs to be decided now, and what can wait until I have more clarity?

Sometimes that distinction alone can make a long list of financial decisions feel much more manageable.

What Should Women Prioritize in Financial Planning?

The details will vary by person and stage of life, but most women benefit from paying attention to several core areas:

Cash flow and savings: Knowing what is coming in, what is going out, and how much flexibility you have
Retirement: Building savings and eventually creating an income you can live on
Investments: Making sure your investment approach fits your goals, timeline, and comfort with risk
Taxes: Understanding how income, investments, benefits, and major decisions affect what you keep
Insurance: Protecting your income, health, family, and assets when something unexpected happens
Estate planning: Keeping beneficiary designations, legal documents, and decision-makers current
Major life goals: Making thoughtful choices about home, work, family, travel, caregiving, giving, and the life you want your money to support

You do not need to give all of these the same attention at every point in your life. Some will matter more right now, while others can wait. What is important is recognizing when a decision in one area may change what you should be doing somewhere else.

Common Questions This Guide Can Help You Clarify

As you think about where you are today, these are some of the questions worth asking:

What deserves my attention at this stage of life?
Which goals are competing for the same money, and what tradeoffs am I making?
Which financial decisions are affecting other parts of my plan?
What would change if my income, career, health, or family situation changed?
Which decisions am I comfortable making on my own, and where would another perspective be helpful?

You may be able to answer some of these questions quickly. Others require assumptions about taxes, investments, future income, health, or several goals pulling in different directions.

Not every financial question requires an advisor. But when one decision starts affecting your taxes, investments, retirement, cash flow, or several goals at once, getting another perspective can be useful.

Start with the decision in front of you

You do not need to organize every account, make every estate-planning decision, or solve retirement all at once. Start with the financial decision you feel is highest priority. It may be a decision about work, taxes, a growing investment account, an aging parent, a home, retirement, or simply the sense that you have a lot in motion and are no longer sure how it all fits together.

Then ask: What else does this decision affect?

A question that seems to be about one account, one tax bill, or one upcoming change may also affect your cash flow, investments, retirement timeline, insurance, or the choices available to you later.

At Nexa Wealth Planning in Los Angeles, I work with women, couples, professionals, and business owners across California and beyond. A lot of the work we do starts with questions like these: figuring out which decisions need attention now, how they affect the rest of your finances, and what can wait.

Sometimes you can work through those questions yourself. And sometimes having someone look at all of the pieces with you makes the next decision much clearer.

Want to Get a Better Sense of Where You Stand?

Reading through these different stages may have brought up a few questions about your own finances. Maybe you're wondering where your money is going, whether you're saving enough for the goals that matter to you, or which goals should come first.

I've created a way for you to start putting some of those pieces together. Using my financial planning tool, you can:

Organize your financial information in one place
Get a clearer view of your spending
Identify and prioritize the goals you're working toward
Start seeing where you may want to focus next

[Get Started With the Financial Planning Tool]

You don't need to have everything figured out before you begin. This is simply a way to get a clearer look at where you are today and what you may want to work on next.

A tool can help you organize the information. The next part is deciding what to do with it.

At Nexa Wealth Planning in Los Angeles, I work with women, couples, professionals, and business owners across California and beyond. If you're wondering whether you're on track or want help deciding what deserves your attention next, we can talk through it together.

[Schedule a Conversation]

Renee Cohen, CFP® is the founder of Nexa Wealth Planning, a fee-based financial planning firm in Los Angeles serving women and couples across California and virtually nationwide.

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Ask me anything
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How Do You Know It’s Time to Hire a Financial Planner?

Wed, 05 Aug 2026 04:47:03 GMT

Has your financial life become more complex?

For many people, the need for a financial planner doesn’t happen overnight. It happens gradually as more pieces are added to their financial life.

You may have changed jobs a few times and ended up with retirement accounts in different places. You may have started investing outside your 401k, received company stock, purchased rental property, or become a business owner.

None of those things are problems by themselves. The challenge is that each new piece creates another decision, and those decisions start affecting one another.

That’s where financial planning becomes valuable. Instead of looking at each account individually, I help clients step back, organize the moving pieces, and understand how everything works together to support their goals.

Here are a few common life transitions that often prompt people to talk with a financial planner:

Getting married or combining finances.
Receiving an inheritance or other unexpected money.
Changing careers or starting a business.
Having a child or planning for education costs.
Moving toward retirement in the next several years..

Are you balancing several financial goals at once?

Very few people have just one financial goal.

You may be trying to:

Save for retirement.
Help pay for a child's education.
Buy or remodel a home.
Support aging parents.
Grow a business.
Travel or enjoy other meaningful experiences.
Build an emergency fund or pay down debt.

The challenge is deciding how to make progress on all of it without feeling like one goal has to come at the expense of another.

When I work with clients in this stage, I help them prioritize, coordinate, and make sure their money is being used in a way that fits both their short-term life and long-term goals.

Is retirement starting to feel real?

Retirement can feel far away for a long time, then suddenly start to feel very real. Once that happens, the questions usually shift from “How much am I saving?” to “Will this actually support the life I want?”

You may find yourself asking:

Will my money last?
When should I claim Social Security?
How much can I realistically spend?
Should I keep working longer?
Am I invested appropriately for this stage of life?

Those questions can’t be answered by looking at one account balance. They require looking at your retirement savings, Social Security, taxes, investments, and spending together.

When I work with clients who are starting to think seriously about retirement , I help them see the full picture so they can understand not just whether they’re on track, but what decisions may help them feel more confident about the years ahead.

These aren't questions that can be answered by looking at a single account balance. They require looking at your retirement savings, taxes, Social Security, investments, and spending together. That's where financial planning becomes valuable—helping you understand how all of those decisions work together instead of making each one independently.

When I work with clients who are starting to think seriously about retirement, I help them see the full picture so they can understand not just whether they’re on track, but what decisions may help them feel more confident about the years ahead.

Are taxes becoming part of more financial decisions?

Earlier in your career, taxes may have been something you thought about once a year.

As your financial life gets more complex, taxes often become part of decisions you’re making throughout the year. You may be wondering whether to contribute to a Traditional or Roth 401k, how to handle company stock, whether a Backdoor Roth IRA makes sense, or how to think about capital gains and year-end moves.

The goal isn’t just to reduce taxes this year. It’s to make tax decisions that support the rest of your financial plan and give you more flexibility over time.

When I work with clients, I help them step back and look at the bigger picture so tax decisions are not made in isolation. Sometimes the best move is to save taxes now. Other times, paying a little more tax today creates better options later.

Has a major life change shifted your priorities?

Life changes often create the need for a new financial plan.

Marriage, children, job changes, business sales, inheritance, divorce, and loss can all reshape your financial picture and bring new questions with them. You may need to revisit your retirement timeline, update your insurance, review your estate plan, or rethink how you’re saving and investing.

Those kinds of changes naturally bring new financial questions, and they often mean the plan that used to fit no longer fits as well. In these moments, financial planning can provide structure, help you sort through priorities, and make the next steps feel more manageable.

In a city like Los Angeles, those transitions can feel even more complicated because housing costs, taxes, and career changes often add another layer. That’s one reason a planning conversation can be so helpful.

When I work with clients during transitions, I help them sort through the urgent decisions first and then build from there. Most people don’t need to start over — they need to make thoughtful adjustments.

What to do next

If you're wondering whether it's time to work with a financial planner, here are a few practical steps you can take:

Write down the financial decisions you're currently facing. If several of them affect one another, that's often a sign it's time for a more coordinated plan.
Review your financial goals. Retirement is important, but make sure your savings, investments, and cash flow reflect the other priorities in your life as well.
Take inventory of your accounts. If you have retirement accounts from multiple employers, taxable investments, company stock, or other assets, it may be time to look at how everything fits together.
Think about what's changed over the last few years. A new job, growing family, inheritance, business sale, or approaching retirement may mean your financial plan deserves another look.
Ask for a second opinion. Sometimes the biggest value isn't finding a dramatic mistake—it's gaining confidence that you're making thoughtful decisions.

So, who needs a financial planner?

Not everyone does.

If your finances are relatively straightforward and you enjoy managing everything yourself, you may not need ongoing financial planning right now.

But if you're making decisions that affect several areas of your financial life, it can be helpful to have someone who can help you think through those choices and see how they fit together.

Many of the people I work with have done an excellent job managing their finances on their own. They’re not looking for someone to take over. They’re looking for a trusted partner who can help them think through important decisions, identify opportunities they may not have considered, and move forward with greater confidence.

If you’re wondering whether now is the right time to work with a financial planner, a conversation can help you identify what matters most, what decisions need attention first, and what support would be most useful for where you are today.

FAQs

Do I need a certain net worth to hire a financial planner?

No. What matters more is whether your financial decisions are becoming more complex or harder to manage on your own.

What if I’m already doing most of this myself?

That’s common. Many clients come in not because they’re disorganized, but because they want a second set of eyes and a clearer plan.

Is this only for people near retirement?

No. People often seek financial planning when they are in the middle of career changes, family changes, or equity compensation decisions.

Financial planning does not have to wait for a perfect moment. If your financial life is starting to feel more layered, or if a major transition has shifted your priorities, it may be time to get a second set of eyes on your plan.

If you’re wondering whether now is the right time to work with a financial planner, schedule a conversation to talk through your current situation and next steps.

The best time to hire a financial planner usually isn’t about age, income, or net worth. It’s about whether your financial decisions have become complex enough that you want a clearer plan and a trusted guide.

You may benefit from working with a financial planner if:

You're balancing several financial goals at once.
You're starting to think seriously about retirement.
You're making decisions where taxes have a bigger impact.
You're receiving stock compensation or equity.
You've experienced a major life event that's changed your priorities.

One of the biggest misconceptions about financial planning is that there’s a specific point when you’re suddenly “ready.”

People often assume they should wait until they’ve hit a savings milestone, gotten close to retirement, sold a business, or received an inheritance. But the truth is, there isn’t a magic age, income level, or net worth that tells you when it’s time to work with a financial planner.

What usually matters more is whether your financial life has become complex enough that you want help seeing how all the pieces fit together. At Nexa Wealth Planning , I work with people who are making bigger financial decisions than they were a few years ago and want confidence that those decisions are supporting the life they want.

Here are five signs it may be time to have that conversation.

Renee Cohen, CFP® is the founder of Nexa Wealth Planning, a fee-based financial planning firm in Los Angeles serving women and couples across California and virtually nationwide.

Connect with Renee:
Ask me anything
W o rk with Nexa Wealth
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How Long Will My Money Last in Retirement?

Sun, 26 Jul 2026 21:31:37 GMT

"Will my money last in retirement?" It's the question I hear more than any other.

If you're anywhere near retirement, you've probably asked yourself the same thing. It's one of the most important financial questions you'll ever face and one of the hardest to answer with a simple rule of thumb. That's because the answer isn't found in a single number or a retirement calculator. It comes from understanding the life you want to live and building a financial plan that supports it.

You've seen the headlines. You need a certain number saved, or you should follow the 4% rule, or you should have some multiple of your salary by a certain age.

Those can be useful starting points, but they don't come close to telling the whole story. Two people with the exact same savings can have completely different retirements depending on how they live, what they pay in taxes, what healthcare costs them, and how their income is actually structured.

So at Nexa Wealth Planning here in Los Angeles, I don't start with a number, I start with you. Whether you're retiring in a few years or just planning ahead, and whether you're here in California or working with me virtually from somewhere else, the way I help you answer this question is by building a retirement income plan around your life, not around generic assumptions. Here's how that conversation goes.

We start with the life you actually want

Whe n someone asks me whether their money will last, what they’re really asking is more personal than that. They’re asking whether they can live the retirement they worked so hard for.

Most people come to me leading with a number: How much do I need? Is what I have enough? But that number means very little until we understand what it needs to pay for. Before we talk about investment returns or account balances, I want to understand what retirement looks like for you.

Before we talk about investment returns, withdrawal rates, or account balances, I want to understand what retirement looks like for you.

Do you want to travel a few times a year or stay closer to home? Keep your current house or move nearer to family? Buy the place near the water you’ve been imagining? Help your children or grandchildren while you’re still here to see the impact? Continue working part-time because you enjoy the purpose and connection it gives you?

One thing I also remind clients is that retirement isn't one long season. It changes over time just like life before retirement did. Many people assume they'll automatically spend less once they stop working.

That has not been my experience with most clients. In the first 10 to 20 years of retirement, depending on when you retire, you may be more active than ever. You finally have the time to travel, visit family, take up new hobbies, work on the house, or do the things you postponed while you were working. You may no longer be commuting or contributing to retirement accounts, but those expenses are often replaced by something else. In some cases, people spend about the same as they did before retirement, or even more.

That’s why I plan for retirement in stages. We may begin with a higher spending level during your active years, then gradually reduce that assumption by roughly 5% to 10% as travel slows, routines change, and you move into a different season of retirement. It is not a prediction that life will unfold exactly that way. It is a more realistic starting point than assuming you will spend the same amount forever—or that your expenses will suddenly drop the day you retire.

These choices shape the plan far more than most people expect. The numbers matter, but only because they help answer a more meaningful question: Will your money support the life you want to live, even as that life changes over time?

Life rarely unfolds exactly as we expect, and your retirement plan shouldn't assume that it will. It should be flexible enough to adapt as your life changes.

Very few people retire on a single source of income. It usually comes from several places at once, some combination of your 401k, IRAs, a brokerage account, Social Security, maybe a pension, rental income, business income, or part-time work you actually enjoy.

The mistake I see most often is evaluating each account or income source on its own. What matters is how they work together.

Should you delay Social Security, and for how long? Which accounts should you draw from first, and which should you leave invested? Would using Roth assets earlier improve your long-term tax picture, or create fewer options later? How will required withdrawals affect your income and taxes?

Take Social Security, for example. Claiming earlier provides income sooner, but it permanently reduces your monthly benefit. Waiting can significantly increase your guaranteed income for the rest of your life. The right choice depends on far more than your age. It depends on how much income you need, what other assets you have available, your health, your tax situation, and your long-term goals.

The same is true for your retirement accounts. We look at how to efficiently use dollars from your 401k, IRA, brokerage account, or Roth accounts to create the income you need while also considering taxes.

In some situations, it may make sense to complete Roth conversions before required minimum distributions begin. In others, a different approach may better support your long-term plan.

These aren’t isolated decisions. They all influence one another, and those connections are almost impossible to see when you’re reviewing one account statement at a time. That’s why we coordinate them as part of a single retirement income strategy rather than making each choice independently.

It’s tempting to build a retirement plan around a version of the future in which everything cooperates. But that isn’t the future anyone actually gets.

Markets don’t move on schedule. Inflation doesn’t hold still. Healthcare expenses can change. Careers and family responsibilities do not always unfold according to plan. That’s why I don’t build retirement plans around the assumption that everything will go right.

Instead, we look at the harder scenarios together.

What happens if the market falls during your first few years of retirement while you’re also withdrawing money? What if inflation remains higher than expected? What if you retire earlier than planned—by choice or because circumstances force the decision? What if one spouse lives significantly longer than the other?

Walking through these possibilities ahead of time helps us identify weak spots while they are still only possibilities. We can then make adjustments before those risks become realities.

The purpose is not to predict your future. It is to build a plan that can remain useful across many different versions of it.

We account for the risks people overlook

Many people assume the stock market is the greatest threat to their retirement. In practice, some of the most damaging risks are the gradual ones that receive less attention.

1. Healthcare and long-term care

Medical expenses often increase with age, and Medicare does not cover every type of care a retiree may eventually need. Extended care, in particular, can become a significant expense for an individual, a spouse, or the entire family.

When someone tells me long-term care is not something they need to think about yet, I often ask a different question: If you needed help for an extended period, who would provide that care and what would it require from them financially, physically, and emotionally?

That question makes the issue more real. Long-term care planning is not only about protecting an account balance. It is also about protecting the people you love from having to make difficult decisions without a plan.

2. Taxes

Many people are surprised by how much they may still pay in taxes after they retire. Different accounts receive different tax treatment, and the order in which you withdraw money can affect how much you ultimately keep.

Retirement tax planning may involve deciding when to recognize income, when to use taxable or tax-deferred accounts, whether Roth conversions deserve consideration, and how Social Security and other income sources interact. The goal is not simply to reduce this year’s tax bill. It is to make thoughtful decisions across the full length of retirement.

3. Inflation

Inflation rarely feels dramatic from one year to the next. Over a retirement that may last 25 or 30 years, however, it can quietly erode what your money is able to buy.

A plan based only on today’s expenses may look comfortable while underestimating what the same lifestyle could cost in the future. Your income strategy therefore needs to support today’s spending while giving your money an opportunity to keep pace with your changing cost of living.

We create a living plan that evolves with you

By this point, we've spent time understanding the retirement you want, identifying where your income will come from, stress-testing the plan, and thinking through risks like taxes, inflation, and healthcare. Now it's time to turn all of those conversations into a retirement income plan you can actually use.

Now it's time to turn all of that into a retirement income plan you can actually use.

Instead of wondering whether you're on the right track, you'll have a clear picture of how the pieces fit together. You'll understand where your retirement income is expected to come from, when decisions like claiming Social Security fit into the plan, how withdrawals from your retirement accounts can be coordinated with taxes in mind, and how much flexibility you have if life doesn't unfold exactly as expected.

Just as importantly, you'll know why we're making those decisions. I want my clients to understand the strategy behind the plan, not simply follow a set of recommendations.

And because retirement isn't one long season, this isn't a plan that's created once and put in a drawer. Your spending may change as you move through different stages of retirement. Tax laws evolve. Markets fluctuate. Your priorities may shift. The plan should evolve with them.

That's why I view retirement planning as an ongoing relationship rather than a one-time project. We revisit the strategy, make thoughtful adjustments as your life changes, and help ensure your financial plan continues to support the retirement you want, not just the retirement we imagined years earlier.

Get a clearer answer for your retirement

So, will your money last in retirement?

The answer comes from looking at your entire financial life together: the retirement you want, the income available to you, the taxes you may owe, the risks you need to prepare for, and the decisions you can make along the way.

At Nexa Wealth Planning in Los Angeles, I help women, couples, and business owners across California and beyond turn those moving pieces into a coordinated retirement income plan. You’ll see where you stand today, what may need attention, and which next steps can give you more confidence about the years ahead.

Schedule a conversation to begin answering the question with your own numbers, goals, and life in mind.

What if I'm in my 30s or 40s? Is it too early to start planning for retirement?

Not at all. Many of the people I work with begin planning well before retirement because they want to make thoughtful decisions while those decisions still have time to make a meaningful difference.

Learn more about how we work with clients if you're wondering whether now is the right time to create a financial plan.

When retirement is still years away, the questions simply look a little different. Am I saving enough? Are my investments aligned with my goals? Should I prioritize my 401k, Roth accounts, or other investments? What kind of retirement income am I currently on track to create?

Just as importantly, financial planning at this stage isn't only about retirement. You may also be buying a home, raising children, supporting aging parents, building a business, or saving for other goals that matter to you. The objective isn't to maximize your retirement savings at the expense of everything else. It's to make intentional decisions that balance today's priorities with your long-term financial future.

The earlier you begin asking these questions, the more flexibility you typically have. Small, consistent adjustments made over many years can have a meaningful impact on where you ultimately end up.

We find every place your income will come from

You Might Also Be Wondering...

We prepare for uncertainty

Renee Cohen, CFP® is the founder of Nexa Wealth Planning, a fee-based financial planning firm in Los Angeles serving women and couples across California and virtually nationwide.

Connect with Renee:
Ask me anything
Work with Nexa Wealth
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2026 Midyear Market Update

Tue, 07 Jul 2026 14:37:37 GMT

We're halfway through 2026 and it's been an eventful year so far. The conflict in the Middle East, oil prices spiking above $100, stubborn inflation, and a daily news cycle that makes it easy to feel like everything is falling apart.

What is Happening in the 2026 Markets?

U.S. stocks have gained roughly 10% so far this year. Most people are surprised when they hear that because the news has felt relentless. But markets often move ahead of the news, not with it. This isn't a rally built on wishful thinking. Companies are actually earning more money than they were a year ago, and that's what's driving prices higher.

Is AI Just Another Dot-Com Bubble?

It's the question I'm hearing most right now.

The late 1990s dot-com boom was built on speculation. Companies raised billions, built technology infrastructure, and then waited for customers to show up. Many never did, and when the bubble burst, investors lost significant money.

Today's AI story is different in one important way: the demand is already here. Businesses are actively using AI tools, paying for them, and integrating them into their operations right now. The investment in AI infrastructure is following real, existing demand, not betting on demand that might show up someday. That doesn't mean AI stocks can't be overvalued or that there won't be volatility. But it's a fundamentally different setup than 2000.

A relatively small group of large technology companies is driving much of the market's gains right now. In fact, over half of U.S. earnings growth this year is expected to come from AI-related industries — chips, data centers, and the systems that make it all run. That's worth being aware of and it's one of the strongest arguments for owning a little of everything rather than putting too much weight in any one area.

What Does the SpaceX IPO Mean for My Portfolio?

SpaceX went public in June as the largest IPO in history, valued at over $1.7 trillion and it changed the rules for how some index funds work.

The Nasdaq changed its rules to fast-track SpaceX into its index just 15 days after the IPO, so if you hold Nasdaq-focused funds, you picked up some SpaceX exposure automatically. The S&P 500 took a different stance and held firm on its longstanding requirement that companies actually be profitable before joining. SpaceX lost over $4 billion last quarter, so that exposure won't happen until at least mid-2027.

Because your investments are spread across many different companies, you don't need to have a view on SpaceX to be well positioned. No single company, however large, determines your outcome.

What about inflation?

Inflation has been more stubborn than most people expected heading into 2026. Higher energy costs from the Middle East conflict have kept prices elevated at the gas pump and in grocery stores — the places we feel it most directly.

The good news is that this type of inflation tends to be temporary. When energy prices settle down, and historically they do, everyday prices tend to follow. We're nowhere near the levels we saw in 2022, and the conditions that drove inflation that high aren't what we're dealing with today.

Why Aren't Interest Rates Coming Down?

At the start of the year, you may have been expecting the Fed to start cutting interest rates. That hasn't happened. Inflation has been stickier than expected and rates are now likely to stay where they are through at least 2027.

That might sound frustrating, but higher rates mean the bonds in your portfolio are actually earning something meaningful right now. For years, bonds were barely keeping up with inflation. That's changed, and it's now working in your favor.

Is the Economy in Trouble?

Behind all the market noise, the actual economy has held up well. Job growth remains solid, consumers are still spending, and the unemployment rate is near historically strong levels. Growth has slowed from the pace of recent years, but slow and steady is a very different thing from falling apart.

The things worth watching in the second half of the year: whether higher energy costs push inflation up more broadly, how the Middle East situation continues to develop, and midterm elections later this year, which tend to bring their own round of market noise regardless of outcome.

What This Means for Your Financial Plan

Markets have proven more resilient this year than most investors expected. The underlying economy is holding up, earnings are growing, and a well-diversified portfolio has been doing exactly what it's designed to do by participating in the gains while cushioning the volatility.

That said, the path forward probably won't be perfectly smooth. A handful of large technology and AI stocks have been doing most of the heavy lifting this year and when gains are that concentrated, a stumble in those names can feel more dramatic than it actually is. What's more likely than a broad downturn is rotating corrections, where different parts of the market take turns pulling back rather than everything falling at once. If you're diversified across many different areas, that's exactly the environment your portfolio is built to handle.

The second half will bring new headlines: midterm elections, inflation data, Fed decisions, and whatever we can't yet anticipate. None of that changes the fundamental case for staying invested and staying the course.

As always, if anything here sparked a question about your own situation, I'm here.

— Renee

What Should I Expect in the Second Half of 2026?

A good financial plan already accounts for the fact that markets don't move in a straight line, that interest rates change, and that headlines are often louder than the underlying reality. It accounts for years like this one.

Being diversified means participating in AI's growth without being entirely dependent on it. It means rising interest rates are working in your favor on the bond side even while they create uncertainty elsewhere. It means you don't need to have a view on SpaceX, or oil prices, or who wins the midterms, to stay on track.

This post is for informational and educational purposes only and is not intended as personalized investment, tax, or legal advice. The information reflects the views of Nexa Wealth Planning as of the date of publication and is subject to change without notice. Investing involves risk, including the possible loss of principal. Please consult with a qualified financial professional before making any investment decisions. Reproduction without written permission is prohibited.

Why I Started Nexa Wealth Planning

Wed, 01 Jul 2026 00:55:35 GMT

Why I Started Nexa Wealth Planning

When I was 32 and single, I met with a financial advisor because I was thinking about freezing my eggs. At the time, I was contributing to my retirement accounts and saving a little outside of them, but not much. Egg freezing was expensive, and I was considering financing the cost so I could do it sooner.

What I wanted help with was understanding the tradeoff and how I could pay for it without having a significant impact on my longer-term financial future. After all, I saw this as an investment in my future too, just a different kind of investment.

Would it make sense to temporarily reduce what I was putting into retirement so I could save more toward the cost? If I did that for a year or two, how much would it actually affect my long-term plan? Was I putting myself significantly behind, or was this something I could reasonably make room for?

I wasn’t looking for someone to tell me whether I should freeze my eggs. At that point in my life, preserving the possibility of having children someday mattered to me in a way that wasn’t going to show up on my balance sheet.

I wanted help figuring out what it would mean financially.

But the conversation kept coming back to growing my investments and how much I could fall behind if I didn’t continue contributing at the same level to my retirement accounts. I remember leaving that meeting feeling like the question I had brought in was clearly a financial one, but I still didn’t have much help weighing the choice I was actually trying to make.

That stayed with me.

Over time, I realized that a lot of the decisions women make don’t fit neatly into an investment conversation. Sometimes there are things we want or need to do that cost money and may mean we save less for a while. That doesn’t mean we ignore the long-term impact. It means we should be able to look at the numbers, understand the tradeoff, and decide whether it’s something we can afford to do.

That was the kind of conversation I had been looking for at 32.

A Few Years Later, I Changed Careers

A few years later, I made a major career change. I left sports marketing and went into financial services.

At that point, I was in my 30s and thinking much more seriously about my own financial future. My friends and I talked about saving money, but I realized that none of us really understood investing or had much of a strategy for what we were doing with the money we had saved.

I wanted to understand money at a much deeper level. I wanted to get the education and certifications, learn how investments and financial planning actually worked, and become someone who could help other women understand their finances and have more agency over their own financial futures.

So I went all in on financial services. I spent the next nine years at a large financial firm, building my expertise and working with clients. I learned a tremendous amount about investments, retirement planning, and what it means to help someone make important financial decisions.

Over those nine years, I also became clearer about the kind of advisor I wanted to be and the kind of financial planning I wanted to provide.

I didn’t want planning to start and end with a portfolio. I wanted to help people think through the decisions they were actually trying to make. I saw how important that could be for women in particular. Our lives don’t always follow a predictable sequence. Careers change. Marriage and children may happen later or not at all. We may take time away from work, care for family, start businesses, go through a divorce, or find ourselves managing money on our own.

Those decisions have financial consequences, but the answer can’t always be to do whatever leaves you with the largest investment account.

The numbers still matter. I want to understand what a decision could cost, what may need to change if you make it, and what it means for the rest of your plan. But ultimately, the numbers should help you make the decision, not make the decision for you.

I Started to See Where Financial Advice Could Fall Short

After more than a decade working in financial services, I’ve seen how much our financial questions can change as our lives change.

I think about the questions I had in my 30s, and now, in my 40s, some of the things I’m thinking about in my own financial life are different. I see the same thing with my clients. What matters to us changes, and our financial plans need to be able to change with us.

When I decided to leave the large firm and start Nexa Wealth Planning, I knew I wanted to build a practice where I could help someone with her investments and retirement planning, but also make room for the question that brought her to me in the first place.

Sometimes that question is about retirement. Sometimes it’s what to do with company stock, how much she can afford to spend, or whether she’s financially prepared for a change she’s considering.

And sometimes it may be something like the question I had at 32.

I still think about that version of myself, sitting across from a financial advisor trying to figure out how to pay for freezing my eggs.

I didn’t need someone to tell me that saving more for retirement would leave me with more money for retirement. I understood that.

I needed someone to help me figure out whether I could make room for something that mattered to me without putting the rest of my financial future at risk.

I wanted women to have a place where they could understand their money, ask the questions that were actually on their minds, and get help thinking through what their choices would mean financially.

I wanted to be the advisor I had been looking for at 32.

That’s why I started Nexa Wealth Planning.

If you have a financial decision you’ve been trying to figure out, let’s talk.

Schedule a Conversation

Eventually, I Knew What I Wanted to Build

Working in financial services showed me how valuable good financial advice can be. It also showed me some of the limitations of the way advice has traditionally been delivered

One of the things I kept coming back to was how much access to advice could depend on how much money someone already had available to invest.

That never sat quite right with me.

I thought about myself and my friends years earlier. We were working, earning money, and saving. We were also making decisions that could affect our finances for years to come. But we didn't necessarily have big investment portfolios.

You shouldn’t need a big investment portfolio before your financial decisions are important enough to deserve good advice.

Someone can be earning a good income and still not know what to do with the money left over each month. She can be saving into a 401(k) but have no idea whether she's saving enough or investing it appropriately. She can be thinking about buying a home, changing careers, starting a family, or making another expensive decision and want to know what she can actually afford.

Those are financial planning questions too.

I also became more aware of how financial advice can sometimes be wrapped within a product sale.

I don’t think financial products are inherently good or bad. Insurance can solve an important need. An annuity can make sense in the right situation. Different investments and financial products can all have a place.

What mattered to me was the order.

I wanted to understand the person sitting across from me first. What is she trying to accomplish? What does she already have? What is she worried about? What decisions does she need to make?

Once we understand that, we can determine whether a particular product or solution belongs in the plan.

The plan should tell us whether a product is needed, not the other way around.

About the Author

Connect with Renee:
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Wo r k with Nexa Wealth
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The Peace of Wealth

Should You Consider a Backdoor Roth IRA?

What Is a Backdoor Roth IRA?

Who Should Consider a Backdoor Roth IRA?

What Is the Pro-Rata Rule?

When Might a Backdoor Roth IRA Not Make Sense?

Can You Do a Backdoor Roth IRA Every Year?

Where Does a Backdoor Roth IRA Fit Into Your Financial Plan?

Where Does a Backdoor Roth IRA Fit Into Your Financial Plan?

Questions to Ask Before Doing a Backdoor Roth IRA

RSUs, Stock Options & ESPPs: A Financial Planning Guide for Women

What Are RSUs?

Should You Sell Your RSUs When They Vest?

How Much Company Stock Is Too Much?

How Are RSUs Taxed?

What are Stock Options?

How Are Incentive Stock Options (ISOs) Taxed?

How Are Nonqualified Stock Options (NSOs) Taxed?

What Happens to Stock Options If You Leave Your Job?

Is an ESPP Worth It?

What Is an ESPP?

What Is an ESPP?

What Should You Do With the Money If You Sell?

How Does Equity Compensation Fit Into Your Financial Plan?

Questions to Ask About Your Equity Compensation:

Have Questions About Your Company Stock?

Frequently Asked Questions

Should I sell my RSUs as soon as they vest?

Are RSUs taxed twice?

Can stock options create a tax bill before I sell the shares?

Is it risky to have too much company stock?

Can a financial planner help with RSUs and stock options?

What Is Comprehensive Financial Planning?

What is Comprehensive Financial Planning?

What Does That Look Like in Real Life?

What Is the Difference Between Investment Management and Comprehensive Financial Planning?

How Do Taxes Fit Into Comprehensive Financial Planning?

How Does Retirement Fit Into a Comprehensive Financial Plan?

When Is It Helpful to Have a Financial Planner Looking at the Whole Picture?

What Does Comprehensive Financial Planning Look Like at Nexa Wealth Planning?

Frequently Asked Questions:

Financial Planning for Women: A Guide for Every Stage of Life

Your Financial Life Will Not Follow a Straight Line

Stage 1: Getting the Basics in Place

Stage 2: When Several Goals Compete for the Same Dollars

Stage 3: When Money Has More Moving Parts

Stage 4: When Retirement Is No Longer “Someday”

Stage 5: When Life Changes and the Plan Needs to Change

What Should Women Prioritize in Financial Planning?

Common Questions This Guide Can Help You Clarify

Start with the decision in front of you

Want to Get a Better Sense of Where You Stand?

How Do You Know It’s Time to Hire a Financial Planner?

Has your financial life become more complex?

Are you balancing several financial goals at once?

Is retirement starting to feel real?

Are taxes becoming part of more financial decisions? ﻿

Has a major life change shifted your priorities?

What to do next

So, who needs a financial planner?

FAQs

How Long Will My Money Last in Retirement?

We start with the life you actually want

1. Healthcare and long-term care

2. Taxes

3. Inflation

We create a living plan that evolves with you

Get a clearer answer for your retirement

We find every place your income will come from

You Might Also Be Wondering...

We prepare for uncertainty

2026 Midyear Market Update

What is Happening in the 2026 Markets?

Is AI Just Another Dot-Com Bubble?

What Does the SpaceX IPO Mean for My Portfolio?

What about inflation?

Why Aren't Interest Rates Coming Down?

Is the Economy in Trouble?

What This Means for Your Financial Plan

What Should I Expect in the Second Half of 2026?

Are taxes becoming part of more financial decisions?