Category: Articles

Read all of the articles coming from our experts at confluence financial partners!

  • 6 Ways High Earning Women Can Navigate Career, Wealth, and Life Changes

    As a woman, a financial advisor, a mother of four, a wife, and a daughter who has cared for aging parents, I’ve lived many of the transitions and challenges that high-earning women face. I’ve also changed careers, taken time off to raise my children, and returned to the workforce with a renewed sense of purpose. These experiences have shaped not only how I view financial planning, but how I help other women approach their wealth with confidence and clarity.

    Financial planning is deeply personal, and for women, especially those with high earning potential, it often requires a tailored approach that reflects the realities of our lives. From career shifts to caregiving roles, longevity, and legacy goals, thoughtful planning can help us protect, grow, and purposefully use our wealth.

    1. Career Trajectories and Earning Patterns

    Women’s careers often don’t follow a straight line. Whether it’s stepping away to raise children, caring for loved ones, or pivoting into new roles, these transitions can impact income, retirement savings, and investment strategies. I’ve seen how flexible financial planning that accounts for pauses and pivots can empower women to stay on track and build long-term wealth, even when life takes unexpected turns.

    2. Longevity and Healthcare Considerations

    Women tend to live longer than men, which means our retirement plans need to stretch further. We must think about healthcare, long-term care, and how to sustain our lifestyle for decades. Planning for longevity isn’t just about numbers, it’s about peace of mind. It’s about knowing that we’ll be okay, and that we won’t be a financial burden to those we love.

    3. Risk Tolerance and Investment Approach

    I’ve worked with women who are cautious investors and others who are bold and growth oriented. There’s no one-size-fits-all approach. What matters is aligning your investments with your values, goals, and comfort level.  Your portfolio should reflect this, balancing growth, protection, and flexibility, so you can feel confident in every market cycle.

    4. Estate, Legacy, and Intergenerational Wealth

    Many women I work with are the financial stewards of their families. They care deeply about how their wealth will impact future generations and the causes they believe in. Whether it’s through charitable giving, trusts, or legacy planning, a thoughtful financial plan can assist in fulfilling family objectives and legacy goals.

    5. Empowerment Through Education and Engagement

    Historically, women have faced barriers to financial confidence and literacy. Too often, women feel intimidated by financial jargon or worry they’re “not good with money.” But I believe, and have witnessed, that with the right guidance, women become incredibly powerful financial decision-makers.  Women should feel safe asking questions, exploring options, and taking control of their financial futures.

    6. Life Transitions and Flexibility

    Life is full of transitions including marriage, divorce, career changes, caregiving, and retirement. I’ve walked through several of these stages myself. That’s why I believe financial plans need to be adaptable and should evolve as life does. Because when your financial strategy is flexible, you’re better prepared for whatever comes next.

    Financial planning for women isn’t just about numbers, it’s about life. It’s about creating a strategy that supports your goals, your family, and your future. As someone who’s lived many of these experiences, I’m passionate about helping women feel confident, informed, and empowered in their financial journey.

    Let’s talk about how thoughtful planning can help you balance wealth, life, and legacy. I’d love to help you explore your options and build a plan that reflects your unique path.

    Melissa Pirosko
    About the Author

    Melissa’s love of investing combined with her desire to help and serve others led her to a career in wealth management. Melissa enjoys working with clients to help them reach their financial goals and focuses on building long term relationships with each of her clients based on integrity and trust.

    McMurray

    724-271-8801
    melissa.pirosko@confluencefp.com
    Email Melissa

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    Melissa Pirosko

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  • Federal Reserve Cut Rates – Now What?

    As expected, the Federal Reserve reduced the Federal Funds rate by 0.25% today, the first rate cut since December 2024. What can investors expect going forward following the reduction in short-term interest rates? First off, some of the impact is “priced in” in advance of the actual rate cut, as investors and financial markets are forward-looking. That being said, there are some general reactions to expect:

    Short-Term Savings and Liabilities

    • There will be a very tangible effect here – the yield or interest on short-term savings vehicles such as money market funds will drop relatively quickly to reflect the lower rate from the Federal Reserve.
    • Floating-rate loans (i.e. home equity lines of credit, securities-based loans, credit card loans) are often based on Secured Overnight Financing Rate (SOFR) (replaced LIBOR), which tracks Federal Funds rate closely. There should be a reduction in the interest on floating rate loans.

    Mortgage Rates

    • Fixed rate mortgages are the dominant structure in the United States, and the impact of lower Federal Funds rate can be limited on 15-year and 30-year mortgages.
    • These types of fixed mortgages are based off the yield of longer-term Treasuries, plus a risk spread associated with underwriting and issuing the mortgages.
    • Longer-term Treasuries reflect expectations for future economic growth and inflation and are not set by the Federal Reserve.
    • This is also an example of investors pricing-in future events: 30-year mortgage rates hit their lowest level of the year before the interest rate cut was announced.

    Stock and Bond Investments

    • The impact on the stock market can vary- certain sectors and size companies have a greater sensitivity to short-term interest rates. The catalyst for the rate cut is more important for the stock and bond markets- i.e. are the rate cuts due to an impending recession?
    • For example, small cap stocks use significantly greater floating rate financing compared to large cap stocks. Falling short-term interest rates are expected to boost small cap stock earnings. This is one reason why small cap stocks have outperformed large cap stocks in the US since June 30th.
    • Bond investments will generally benefit from the interest rate cuts but like fixed mortgages, the exact impact is more nuanced. When prevailing interest rates fall, the value of existing bonds increases in value. The benefit for bond investments will be reduced if longer-term yields stay higher or increase, similar to what happened after the rate cuts in 2024.

    Rate cuts bring both opportunities and challenges, and staying informed and proactive can help you navigate the shifts with confidence. Since every situation is unique, we’d be glad to review how these changes may affect your goals—let’s start the conversation.

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    William Winkeler

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  • Inheriting Wealth: What You Might Overlook

    Inheriting a large sum of money can be life-changing, but it can also come with increased responsibilities and potential pitfalls. Without careful planning, an inheritance could quickly become a source of stress, conflict, or even potentially lead to financial loss. Many individuals overlook critical considerations that could have long-term consequences.

    Here are some of the most overlooked considerations:

    1. Understanding How the Inheritance Is Structured

    An inheritance may come through a will or a trust, and the structure dramatically affects how and when you receive assets. A will will typically go through probate, which can take months and may incur fees, while a trust may impose restrictions or phased distributions. Misunderstanding these details could delay access to funds or have potential legal complications.

    2. Tax Implications

    Many beneficiaries can be surprised by taxes, including estate taxes, inheritance taxes (depending on your state), and capital gains taxes on investments sold. Retirement accounts like IRAs or 401(k)s typically have strict withdrawal rules as well. Without professional guidance, a misstep here can lead to unwanted tax bills and potentially lost wealth.

    3. Emotional and Family Dynamics

    Inheritance often comes during a period of grief or loss. Decisions made while under stress could lead to overspending, poor investments, or even family disputes. Without clear guidance and communication, these situations could lead to conflict or financial regret.

    4. Revisiting Your Own Financial Plan

    An inheritance can shift your goals, risk tolerance, and financial future overnight. Your old financial plan may no longer fit the amount and type of assets you now own. Revisiting your financial plan can ensure you understand how the inheritance can impact you and your family now and into the future.

    4. Updating Your Estate Documents

    Suddenly receiving a large sum can potentially reveal gaps in your own estate plan. Without a well-designed strategy, you risk depleting your inheritance quickly or failing to protect assets for future generations.

    5. Honoring the Legacy

    Inheritance is often about more than money; it reflects a loved one’s values and intentions. Failing to consider the legacy can lead to decisions that ignore the purpose behind the gift.

    6. Not Working with a Qualified Professional

    Perhaps one of the most critical mistakes is trying to navigate a complex inheritance without guidance. Without professional guidance, it’s easier to mismanage taxes, misinterpret a will or trust, or potentially make investment mistakes that could erode your wealth. Working with a financial advisor can help ensure your inheritance is handled correctly, protects your financial future, and preserves the legacy intended by the person who passed along the assets. The stakes are high, and mistakes could turn a blessing into a costly mistake.

    An inheritance can be both a gift and a responsibility. To protect your wealth, honor your loved one’s legacy, and make smart, strategic decisions, consider reaching out to Confluence Financial Partners. Our team of professionals can help guide you through each step of the inheritance process, helping you turn this opportunity into a lasting foundation for your financial future.

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    Gregory Weimer

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