Did you know that 90% of women* will be left to solely manage their finances at some point in their life due to divorce, death, or by choice? So, it’s critical that women are informed and feel empowered to make financial decisions that affect their future.
A common theme I have found while working with female clients is that they lack necessary information, they don’t know where to start, and they often rely on their partner to ‘manage things’.
As investors, women tend to be better savers, are often more risk averse, and are more focused on the long term. These characteristics make women great investors, especially when equipped with sound financial advice.
Here are three key steps to get you into the driver’s seat to help build your wealth.
3 Steps for Women and Wealth
Develop a Financial Roadmap
Women have unique financial challenges including living longer, retiring earlier, insuring less and caring for family members. When planning for their future, they need to establish clear goals and strategies. However, the demands and income fluctuation of women in business may make it difficult to stay on track. Having a Financial Advisor on your team can help you maintain discipline and feel more confident about your financial direction.
Review your Direction – (but not too often)
Keeping your long-term goals in mind, it’s important to be realistic about your expectations and to revisit your strategies at least annually to adjust for ongoing changes in your situation. A Financial Advisor won’t magically make your debt disappear, or guarantee outstanding performance on your investments. But they can provide ongoing support and guidance, so you can remain focused on your goals throughout your life.
It’s also important to monitor your household income and spending regularly, to keep on track. However, watching your investments too closely can cause you to shift your assets into more conservative funds. This may have an adverse effect on your long-term growth potential.
Diversify and Stay the course during turbulent times
When you establish an investment mix or asset allocation that suits your risk tolerance and time horizon, you should stick with it. You may have a tendency to second-guess your allocation. Your portfolio should include a well-diversified mix of investments that won’t keep you awake at night.
Heidi Blondin is passionate about educating and empowering professional women to take control of their finances and build wealth. Contact Heidi to get started.
* Source: Statistics Canada: Women in Canada (2011)
Mutual Fund provided through FundEX Investments Inc.
This article was published in the Kingston Women Mean Business Magazine in November 2015.
