Committed to providing solutions for your future needs.

VirtualSage™ - Start Your Plan


(877) 422-6346 x 224


Show all articles

Posts

Personal Wealth and Finance


The Power of Women Investors

April 1, 2019

The incoming generation of investors will be younger and much more diverse, with women now partaking of an increasingly prominent role in building and growing family and personal wealth. This includes millennial women, single mothers, and entrepreneurial women owning or leading a business.1 Many women realize that they cannot be separated from the financial decision-making process or they would be ill-prepared to manage critical life-changes such as divorce or death of their partner. There is a changing mindset among women— 74% of widowed or divorced women surveyed by UBS Group AG, reported: “discovering negative financial surprises after a divorce or death of their spouse.”

Financial advisors helping women invest take a solution-driven advisory role. Together they clarify women’s financial planning goals. We herein present how women are progressing rapidly in the investment world as we assist in planning areas of their financial independence.

Canadian women control $2.2 trillion of financial assets, and that number is expected to “rise quickly” to just under $3.8 trillion over the next decade. This figure represents 33% of all financial assets in the Canadian economy. We recognise the need for specialised planning and advice for women whose financial journeys often vary from those of men. Women aged 25 and older lead the increase in full-time jobs at 52% since 2008; whereas job placements for women over age 55 increased by twice as much as men. Also, women’s earnings now account for a record-high 47% of family income.

Why Women Excel at Investing

Working women with families who are increasingly becoming independent now implement financial choices jointly with their spouse. With a vital role in the decision-making process for themselves and their families, women excel at understanding personal financial planning. Whether a woman decides to pursue her career in the corporate world, work as an entrepreneur, take a leap from her career to pursue a talent, take a break and raise her family, or do more than one of these things simultaneously, it is essential that she enjoys financial independence to secure herself as well as the dependent family members.2

Financial investments empower the ability to realise both long- and short-term goals. Money leverages decisions that impact how to meet daily near-term budgetary objectives:

  • expenses such as groceries;
  • whether children will attend college or university;
  • annual vacations;
  • buying a home or moving to a larger house.

For long-term goals, statistics show that women are investing now to ensure they have adequate funds to achieve their future goals, such as:

  • travelling, retiring with sufficient income;
  • ongoing socialising with family or friends;
  • maximising retirement income providing the desired lifestyle that meets future inflation;
  • to achieve women’s potential longevity to age 85 or more, which generally exceeds men’s average lifespan.

To achieve these goals, it is imperative that women select excellent investments now, with proper investment performance track-record benchmarks.

Insights for Women Investors

Women like to Invest in what they know Women make roughly 70% of household purchases, putting them in a great position to benefit from the strategy that once made Peter Lynch a well-known strategic investor. He wrote, in his book One Up on Wall Street that his wife was responsible for turning him on to one of his best investment picks ever because she used the firm’s products. 3

Women mitigate risk Women approach investment risk differently than men do. Studies show that men are more inclined to behave like baseball sluggers, who swing for the fences, even if it means running the risk of striking out far more often.4

Women’s more calculated tendencies allow for more patience over the long-term while selecting great investments. A risk profile can help both men and women determine where each investor’s risk acceptance level is. A large selection of investments is available to balance the risk options.

Ensuring Asset Protection Strategies Women are often the first to understand the need to purchase life insurance which can help create financial security for loved ones while living and at death. Life insurance offers:

  • Lifestyle protection for family
  • Mortgage and debt protection
  • Education funding
  • Leaving assets behind for heirs
  • Business continuation
  • Charitable legacy
  • Funeral costs
  • Access to immediate cash when needed

1 CIBC Capital Markets; Advisor’s Edge

2 Entrepreneur Magazine

3 Kiplinger

4 ibid

 

Publisher's Copyright & Legal Use Disclaimer Replication is prohibited beyond the use of this website. The publisher does not guarantee the accuracy and will not be held liable in any way for any error, or omission, or any financial decision or purchase or use of a financial product, including investment or insurance products, and suggest that a professional advisor's counsel is sought, especially with regard to Segregated Funds and Investment Funds which have investment risks as noted in the Fund Disclaimer. All rights reserved by Adviceon®

Disclaimer The particulars contained herein were obtained from sources which we believe are reliable, but are not guaranteed by us and may be incomplete. This website is not deemed to be used as a solicitation in a jurisdiction where this representative is not registered. This content is not intended to provide specific personalized advice, including, without limitation, investment, insurance, financial, legal, accounting or tax advice; and any reference to facts and data provided are from various sources believed to be reliable, but we cannot guarantee they are complete or accurate; and it is intended primarily for Canadian residents only, and the information contained herein is subject to change without notice. References in this Web site to third party goods or services should not be regarded as an endorsement, offer or solicitation of these or any goods or services. Always consult an appropriate professional regarding your particular circumstances before making any financial decision.

Commissions, trailing commissions, management fees and expenses all may be associated with investment funds, including segregated fund investments. Please read the fund summary information folder prospectus before investing. Investment Funds and/or Segregated Funds may not be guaranteed, their market value changes daily and past performance is not indicative of future results. The publisher does not guarantee the accuracy and will not be held liable in any way for any error, or omission, or any financial decision. Talk to your advisor before making any financial decision. A description of the key features of the applicable individual variable annuity contract or segregated fund is contained in the Information Folder. Any amount that is allocated to a segregated fund is invested at the risk of the contract holder and may increase or decrease in value. Product features are subject to change.


Newsletter tags