Financial Planning And Investing Perspectives For Women

Considerations for a lifelong journey to achieving financial wellness

When it comes to investing and money management, women have their own point of view and a unique set of circumstances that shapes their financial future and their journey to financial wellness. Learn what these are and how a woman can go about creating a financial plan and investing strategy that’s right for her.

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Women have a unique perspective when it comes to their finances and investments. While the end goals may be similar those of men – a secure retirement, home ownership, a healthy amount of savings, family and personal responsibilities – the challenges faced and approaches can vary, leading to very different outcomes later in life.

Women have a higher tendency seek guidance when making investment decisions. From our own client research at BlueShore, 40% of women,¹ indicated they mostly or completely rely on others when making investment decisions – compared to only 25% of men said the same. There’s a reverse correlation when it comes to confidence when making investment decisions. A higher proportion of men – 46% vs. 33% for women – rated themselves as feeling quite confident in their own investment decision capabilities.

Considerations for women

Creating and sticking to a financial plan is important no matter who you are, but there are some specific considerations that impact women more than men.

While women are more inclined to ask for professional guidance and advice on making financial decisions, they can sometimes feel concerned that their personal financial goals are not being taken to heart. But many women do take action and generally ask more questions of their advisors which is a good thing – that thirst for knowledge and eagerness to learn helps them make informed decisions.

There are some very specific challenges and concerns that women face, including:

• Living longer lives – women live up to four years longer than men according to Statistics Canada, requiring access to a longer stream of retirement income.
• The gender pay gap – even today, women continue to earn as much as 11.1%² less than men, creating a gap in long-term savings and retirement plans.
• Cautious investment tendencies – aware of the risks, women are more likely to take conservative investment strategies that accumulate fewer gains in the critical early years of a retirement savings plan.
• The “motherhood penalty” – many women will put family and child responsibilities (including the family and child’s financial needs) first, at the expense of long-term planning and investing.
• “Grey divorce” or widowhood implications – a more common phenomenon in this age is the mid-life split of many couples ahead of retirement, impacting the income and retirement savings of many women, or the added concern of a spouse passing well before her.

All of these factors contribute to putting women in a more precarious position in their retirement years. Startling enough, one study noted that 43% of Canadian women over the age of 55 do not have a retirement plan and even for those who do have a plan in place, their savings are 25% less than the average accumulated by men.

This is why women should start planning early and working strategically on a long-term investment and retirement plan – critical factors for ensuring a secure financial future.

Investing in herself – and her future

With these differences in mind, a woman should consider taking a more strategic and goals-based approach to her own financial wellness. There are two things that can be done right away that will help get on the path to a brighter financial future:

Building financial knowledge

Knowledge is power and no matter who you are or what you already know, there are always opportunities for learning and personal growth. BlueShore Financial’s Advice Hub is an excellence resource for helping you to elevate your financial literacy. From investment portfolios to insurance matters, from everyday banking to estate planning, our Advice Hub is here to help you make informed decisions about your money.

Work with an advisor

The key for many of the most successful investors is their relationship with a knowledgeable and experienced advisor. That relationship can go a long way to feeling less stressed about money. The research shows that 53% of Canadians who work with a financial planner felt optimistic about the year ahead.

When looking for an advisor, find one who knows about financial planning and investing and has the right background, but also seek an advisor who will work to understand who you are – your financial goals, your knowledge and how to best communicate with you. Your relationship with your advisor should be built on trust, communication, and a genuine connection.

The value of expert advice

Knowledge and confidence are key factors in your approach to money. That’s why working with a professional is a smart move. When you work with a financial professional, you’re gaining from their expertise and experience – and that can have positive impacts on your wealth and your health: 

• Fact: Canadians who worked 15+ years with a financial advisor can have from two to nearly four times more than those without an advisor.*
• Fact: Your financial well-being can impact your overall well-being, with Canadians who work with a financial planner significantly less likely to say that their finances cause them stress.**

A financial advisor will work with you on setting goals and creating a plan customized to your needs, with regular check-ins and updates to make sure you’re staying on track. They’re also a great resource for acquiring financial information and getting answers to your questions.

At BlueShore Financial, we’re here to help you achieve your financial goals. Whether you’re goal is to learn more or to build a long-view plan for your future, reach out today for answers, solutions, and expert advice suited to your personal needs.