Women & Wealth: 5 Ways to Help Invest with Intention Before Retirement

Sarah Soria |

For many women, money isn’t about “beating the market.” It’s about freedom, security, and having real choices in the next chapter of life.

At Encompass Financial Planning, we work with many women who’ve spent years taking care of everyone else: nurses coming off long shifts, teachers wrapping up their careers, engineers and small business owners juggling work and family. They’re smart and capable, but they’re often wondering:

“Am I actually on track?”

And when it comes down to statistics, it’s easy to see why: 

These realities don’t mean you’re behind, but they’re also where intentional investing can help give you back some control. Below are five key touchpoints to consider as you begin investing in the retirement you want (not just the one you hope works out).

1. Know your “why” before choosing an investment strategy

Successful investing begins with you. That means specificity and clarity, not market trends or what other people are doing. 

A clear “why” helps you determine:

  • Your timeline: When do you realistically want to retire?
  • Your priorities: Income security, travel, legacy, downsizing, caregiving, etc.
  • Your tolerance for risk, which can often shift after major life changes.
  • Your non-negotiables, such as maintaining your home, staying near family, supporting adult children, etc.

Without this foundation, it’s easy to end up with accounts that don’t fit together, savings scattered across employers, or investments that don’t match your goals.

Why this matters: A clear purpose leads to more consistent decisions and reduces the uncertainty many women feel around investing.

2. Build a diversified investment strategy that matches your time horizon

Contrary to popular belief, diversification isn’t about owning “a little of everything,” but about structuring your investments to support the different phases of your financial life.

A well-diversified portfolio typically includes a mix of:

  • Growth assets (such as equities) to outpace inflation
  • Stability assets (such as bonds or fixed income) to reduce volatility
  • Income-producing investments to support predictable retirement cash flow

This is especially important for women who:

  • Are within 5–10 years of retirement
  • Have most assets tied up in a pension, 403(b), or employer plans
  • Have experienced divorce or widowhood, which changes risk capacity
  • Want more clarity around sequence-of-returns risk (the risk of early losses in retirement)

Why this matters: Diversification helps protect your long-term goals from market swings, while giving your money enough growth potential to last a retirement that may span 25–35 years.

3. Use tax strategy as part of your investment plan, not after the fact

For many women, taxes are the single biggest source of retirement inefficiency…and the easiest place to lose money unintentionally.

Smart tax planning might include:

  • Choosing between Roth vs. traditional contributions based on current vs. future tax brackets
  • Evaluating whether Roth conversions make sense before Required Minimum Distributions (RMDs) begin
  • Planning Social Security timing to help prevent unnecessary taxation
  • Structuring your withdrawals to help minimize tax drag
  • Placing tax-inefficient investments in tax-advantaged accounts

Women with higher incomes, such as nurses with overtime, educators with pensions, engineers with RSUs, or dual-income households, can benefit the most from integrated investment and tax planning.

Why this matters: Smart tax planning can help increase the amount of retirement income you get to keep, which directly impacts how long your money lasts.

4. Align your investments with a clear cash flow plan

Even the strongest investment plan can fall apart without a clear understanding of how money moves in and out of your household. A cash flow plan provides structure, which helps reduce stress by ensuring investment decisions are made with your real life, not abstract projections, in mind.

Cash flow planning should answer:

  • How much income will you need in retirement and from which sources?
  • When will you start taking Social Security, and how does timing impact your long-term outcome?
  • What lifestyle expenses are fixed vs. flexible?
  • How will you handle rising healthcare or long-term care costs?

Why this matters: Your lifestyle, longevity, and health are intrinsically linked. Cash flow planning helps align your investments to support your needs across all three areas in retirement. 

5. Choose a financial advisor who understands women’s unique financial needs, and can plan accordingly

Women’s financial lives are often more complicated than traditional retirement planning allows for. With more transitions, longer lifespans, caregiving roles, blended families, and career pauses to consider, you need an advisor who recognizes these realities and plans with them in mind.

This is where Encompass stands apart. Addressing women’s specific retirement planning challenges is at the core of our firm. 

We have nearly two decades of experience working with women from a diverse range of backgrounds, from professionals including nurses, educators, and engineers to women in transition navigating caretaking, divorce, or widowhood. Our empathetic, education-first approach is designed to empower you and keep you wholly in control on your retirement journey.

Let’s give your next chapter the foundation it deserves. Book your call with us today.

 

Frequently Asked Questions: Women and Investing for Retirement

What is the best way for women in their 50s to start investing for retirement?
The best place to start is by understanding your goals, your income needs, and the lifestyle you want in retirement. From there, a diversified investment strategy combined with tax-efficient planning can help your money grow with purpose. Many women in their 50s, including nurses, educators, and engineers in Northern California, benefit from professional guidance to make sure their investments match their long-term goals and risk comfort.

How can women catch up on retirement savings if they feel behind?
Women 50+ qualify for catch-up contributions in retirement accounts, which can make a significant difference. A coordinated plan that includes tax strategy, investment diversification, and cash flow visibility can help you accelerate progress without taking unnecessary risks.

What financial challenges do women face when planning for retirement?
Women often live longer, may take time away from work for caregiving, and experience the long-term impact of the wage gap. These factors affect savings, Social Security benefits, and investment timelines. Many women in the Grass Valley and greater Sacramento area also manage household finances alone, either by default or due to divorce or widowhood. A supportive, education-focused advisor can help smooth these gaps with a holistic plan.

What makes Encompass Financial Planning a good fit for women investors?
Encompass is woman-led, education-first firm rooted in the Northern California community. Sarah and Josh prioritize clarity, compassion, and personalized planning over product pushing. They specialize in supporting women who want a safe, approachable place to ask questions, learn about their money, and make decisions they feel confident about.

Is a holistic financial plan really necessary, or can I just focus on investments?
Investments alone don’t create retirement security. A holistic plan that incorporates all five pillars of holistic wealth management—financial planning, tax management, asset management, legacy planning, and protection planning—helps facilitate a smoother, more confident transition into retirement.