INVEST LIKE A WOMAN – CREATE FINANCIAL PEACE OF MIND AND BUILD THE LIFE YOU WANT!

Reality Check #1

When it comes to our financial health, there’s an important reality to consider-- men and women are different!

As women, we face unique challenges in the economic and social spectrum.  First, there is an earnings gap between men and women, as the average wage of women is less than men.  Although this gap has narrowed over the years, there is still a gap.[i] Women also tend to have lower retirement incomes than men.  A 2016 Sun Life Retirement Now Report found that the average Canadian retiree is living on 62% of his or her annual pre-retirement income. For women retirees, this number drops to under 60% of their pre-retirement income.[ii]  This, coupled with the fact that most women earn less than men while working, results in a lower income for women both pre and post retirement.   

With the large number of single parent families in Canada, it is often more challenging for women to plan for retirement.  When you have the same household bills but less income, at the end of the day, there may be less income to save.  While this may be true, it is certainly not impossible for women to save! 

The last challenge women face is the caregiving gap.  During the start of the pandemic, we saw schools and daycares shut down.  This forced one of the parents to work from home in order to care for the children. In some cases, the parent had to leave the work force altogether.  In most cases, women are more likely to quit work, reduce their working hours and forego promotions to care for children, a spouse or an aging parent.

Reality Check #2

As a woman you will face many tough challenges, but the good news is that you can take charge of your financial health!

3 Key Steps

  1. Get organized with an orderly system for managing your finances
  2. Envision the kind of future you want
  3. Develop a comprehensive, written plan to help you build your future
  1. Get Organized

Put your organization skills to work!

Compile a record of all bank and investment account details like account numbers and account types, as well as credit cards. 

Create a home inventory of items such as furniture, jewelry, electronics, cars, and boats.  Take pictures,   or even videos of the items and attach store receipts or proof of purchase.

Develop a monthly spending plan and make sure to include unforeseen expenditures that are sure to occur. 

Start a savings plan, as even a small amount put away every month adds up!  Typically, you should have at least 3–6 months of your monthly expenses in a savings account. 

Monitor your credit situation, and be strict with yourself when using credit cards.  Consolidate higher interest cards into lower interest if possible.

Lastly, prepare a will and make sure to keep it updated.

  1. Envision the future you want

How do you see yourself in retirement?   Do you want to travel? Spend time with kids or grandkids?  Is there a career you always dreamed of pursuing but maybe weren’t able to previously, and now the opportunity is here?

  1. Make a comprehensive written plan to get there

Sixty percent of Canadians with a written financial plan say they are “very satisfied” or “somewhat satisfied” with how much they are saving for retirement, versus 28% of those without a plan who say the same.[iii]   Having a plan gives you peace of mind. 

One of the most asked questions I hear is, how much money do I need to have to retire on? Every individual is different which means every plan needs to be customized to your goals and dreams.

A financial plan may include tax planning, estate planning, risk management and Insurance protection, small business planning and Investment planning.

Investing can seem intimidating but is a very important element to helping you reach your financial goals.  In fact, studies show that women make good investors!  Studies of investment behaviour suggest that women are more successful investors than men.[iv]   In a study done by Fidelity which looked at over 8 million investment accounts, it concluded that women earned higher returns and were better savers. [v]

So, what are you waiting for??  Take the next step and reach out to a Certified Financial Planner like myself to help you get on track!

Celeste Yuzdepski, B.Comm, CFP, CIM, CFDS, FCSI

 


[i] Statistics Canada: https://www150.statcan.gc.ca/n1/pub/75-004-m/75-004-m2019004-eng.htm

[ii]https://www.sunlife.ca/ca/Tools+and+Resources/Money+and+Finances/Saving+for+retirement/How+the+gender+gap+affects+your+retirement+savings?vgnLocale=en_CA

[iii] Sun Life Canadian Retirement Index Report 2013

[iv] https://www.canadianbusiness.com/investing/why-female-targeted-financial-services-are-a-huge-opportunity/

[v] https://www.forbes.com/sites/michaelcannivet/2018/12/29/why-women-are-better-at-investing/#3340e5fa6f37

Information in this article is from sources believed to be reliable, however, we cannot represent that it is accurate or complete.  It is provided as a general source of information and should not be considered personal investment advice or solicitation to buy or sell securities.  The views are those of the author, Celeste Yuzdepski, and not necessarily those of Raymond James Ltd.  Investors considering any investment should consult with their Investment Advisor to ensure that it is suitable for the investor’s circumstances and risk tolerance before making any investment decision.  Raymond James Ltd. is a Member - Canadian Investor Protection Fund.

LinkedIn article link: https://www.linkedin.com/pulse/invest-like-woman-celeste-yuzdepski-b-comm-cfp-cim-cfds-fcsi