Why Women Need to Focus on Financial Security

22 Apr Why Women Need to Focus on Financial Security

Women make the vast majority of the household purchasing decisions today, but many are still uncomfortable determining whether they can take on a mortgage or how much to save for retirement. It wasn’t only your grandmother who let her spouse take care of the finances. Chances are, you’ve done it too.

You might have questions about estate planning or appropriate insurance options. The answers may not be clear. You may not know where your will is stored, what your bank account numbers are or whether you have a power of attorney. You may not even know where to begin.

We understand the challenge. Your financial security is the foundation of your independence and your quality of life. Whether you were recently widowed or you’re just starting to build equity, we can help you review what you have in place and what you still need to do.

How Your Enduring Legacy Can Help

This isn’t just the same old financial security sales pitch wrapped up in a pink bow. Women have fundamentally different concerns, which must be adequately and appropriately addressed. Some of those concerns include:

• Longer lifetime. The average Canadian woman lives five years longer than her male counterpart.[1] Yet she also needs enough money to support her over her entire lifetime, whether she has a partner, participated in the workforce, or received a comparable salary – or not.
• Human cost. Women consistently spend more time on unpaid work (i.e., housework, caregiving) than men, and they are also more likely to be caring for an adult friend or family member at some point.[2] Perhaps as a result of that, women consider the human cost of aging more acutely. They worry about being a burden on their children or maintaining a standard of living.
• Risk aversion. Roughly half of Canadian women don’t believe they know enough about investments to choose the right ones for their circumstances.[3] In other words, women don’t know as much about investments and may not be confident to make decisions about them. In addition, women tend to be uncomfortable with risk. The possibility of a substantial loss is sufficiently daunting that they miss out on the potential gains as well.
• Collaborative effort. Finding the right financial partner can be a challenge. Many women are looking for an advisor they can trust to give them relevant, timely information – but they also want to work with someone who won’t talk down to them. A woman’s lack of financial literacy doesn’t mean she doesn’t have ideas and opinions about what she needs in her life.

A woman with financial security can achieve all her dreams – and avoid the nightmares. A little bit of financial education and some money in the bank goes a long way toward setting you up for success. Meanwhile, it’s a good idea for every risk-averse woman to invest in appropriate insurance policies to ensure she’s taken care of no matter what, including disability insurance, long-term care insurance and life insurance (either for herself or her partner).

Taking practical steps to protect yourself now and in the future goes a long way toward easing the strain and worry related to financial security.

To learn more about planning your estate, contact us.

[1] https://www150.statcan.gc.ca/n1/pub/75-006-x/2016001/article/14464-eng.htm

[2] https://www150.statcan.gc.ca/n1/daily-quotidien/180730/dq180730a-eng.htm

[3] https://www150.statcan.gc.ca/n1/pub/89-503-x/2015001/article/54930-eng.htm

Joel Rose

With over 35 years of experience, Joel Rose helps families – and their businesses – to prepare for the future. He offers guidance and support to help his clients create estate plans and succession plans that meet the needs of the whole family. Through his extensive professional and personal experience, Joel is known for his compassion and his ability to find a creative solution to meet each family’s needs.