It's That Time Again

Hi friend,

A few things in this life are certain — among them death, Gwyneth Paltrow talking about wellness, and taxes. 

As Paltrow says of her website, Goop, in a lengthy new profile in Vanity Fair: “We’re not a news organization, but when it comes to wellness, I think people do want to understand what our take is.” Sure, why not. She also talks raw milk (she’s a fan), conscious uncoupling, empty nests, her famous ex Brad Pitt, #metoo, and her big return to film.

The movie in question is “Josh Safdie’s period Ping-Pong romp Marty Supreme,” in which she stars opposite Timothée Chalamet. And as she says, the two have “a lot of sex. There’s a lot — a lot.” (Here is a preview of the action; it should be interesting! We’ll have to wait ‘til Christmas to see and judge for ourselves.)

On the taxes front, there’s not much to report, save that they’re due soon. Despite vague talk of “abolishing” the IRS, we all still need to prepare ahead of April 15th. Bloomberg notes that this year, businesses that use Venmo and PayPal will get tax forms from the apps; the free service Direct File is now available in 25 states; and taxpayers affected by the California wildfires can get an extension to October 15th. 

Speaking of, this week we have feature about taxes. Specifically, the tax strategies women can use to best take advantage of a system that’s rigged against them. Read on for that, plus a few recommendations for your weekend.

Bye,
Your friends at Gloria

Despite old stereotypes, women are prudent with money and the numbers back it up. A recent LendingTree survey found that we are more cautious with spending than men. In fact, 51 percent of men admitted to going into credit card debt due to nonessential expenditures, compared to just 42 percent of women. According to Fidelity Investments’ 2021 Women and Investing Study, women also outperform men in investing — take fewer unnecessary risks, think long-term, and achieve better returns. This is done despite a  gender pay gap — a gap that only widens for women of color.

But there is another way for women to protect themselves financially: the tax code. More specifically, leveraging the tax code to create a tax strategy that seamlessly integrates into their long-term financial plan to maximize returns, minimize unnecessary tax burdens, and protect assets. This shift requires women to stop seeing taxes as a once-a-year chore and start treating them as a series of strategic moves to secure, protect, and grow wealth over time.

Women, however, cannot afford to be naive along the way; we’re navigating a rigged tax system. While appearing neutral, it consistently favors high-income, high-wealth households at the expense of women and low- and moderate-income families. As the co-authors of A Tax Code for Us, a report by the National Women’s Law Center, explain:

Nowhere does the tax code explicitly state that particular tax provisions are targeted to predominantly benefit households with high incomes and high wealth or to disproportionately exclude low- and moderate-income families. But in practice, the federal tax code consistently fails to advance policy goals aligned with the needs and preferences of the most marginalized people in our society. This has disproportionate consequences for low-income households, women, and people of color.

With systemic bias baked into the U.S. tax code, women need to master the basics first, starting with tax-advantaged accounts, key deductions, and women-friendly tax credits.

How Women Can Maximize Tax-Advantage Accounts…

Women live longer on average than men, which makes retirement savings a top financial priority. One of the simplest, yet most effective, tax strategies is to contribute to tax-advantaged accounts like 401(k)s and Individual Retirement Accounts (IRAs). Contributions to Traditional 401(k)s and IRAs are deducted from taxable income, lowering an individual’s overall tax bill and allowing investments to grow tax-deferred until retirement. In contrast, contributions to Roth 401(k)s and Roth IRAs are made with after-tax dollars, but the money grows tax-free, ensuring that women keep more of their investment earnings in the future.

Why We Save Less & What You Need To Know 

IRAs and 401k offer tax benefits that allow women to keep more of their earnings and build long-term wealth. However, many of these accounts assume steady, uninterrupted careers. Women, who are more likely to take career breaks for childcare or caregiving, often lose out on years of tax-advantaged savings. And for women of color, it’s worse. Black women and Latinas, who face lower wages and less employer-sponsored benefits, often contribute less, widening long-term financial disparities.

Women who opt out of the workforce face similar concerns. “If a woman is a non-working spouse, she might think she doesn't really have a lot of options for retirement saving. She can contribute, but it will be based on her spouse's earned income,” says Janet Berry-Johnson, CPA and Founder of Firefly Financial Organizing. 

TO WATCH The heartwarming Bob Trevino Likes It (in theaters) is based on real events. A woman in search of a father figure finds one on Facebook. He’s a stranger grieving the death of his son. As AV Club says in its review, “What stands out most about Tracie Laymon’s debut feature is how courageously, unapologetically earnest it is.” When the trailer makes you cry, you know you’re in for it.

TO GET Ahead of summer, we want to upgrade our tee selection with some of the best ones we’ve found — from Kule. They fit great, are substantial, and go with everything. We’re considering this ridiculously adorable pointelle ringer tee, this classic thin stripe, and this sexy terry ‘70s style in the cutest color and crop. #partner

TO CONSULT Two things we bookmarked recently: This amazing swimwear list and this guide to what sheen to choose when painting interiors. On the swimsuit front, we love the personal recommendations, how many one-pieces are included, and how it feels midlife-friendly (and cool).

Postpartum mental health, Phil Donahue, and an important new book. • “Facelift at 35? Why some younger women are going under the knife.” • What do we do about the political gender gap? • Investigating probiotics for UTI prevention. Kudos to the weight-lifting woman nicknamed “Granny Guns.” • A Canadian woman detained by ICE tells her story (this is a harder read).

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