Listen to this podcast from a woman interested in investing.
Women are investing more than ever but still face challenges. Understanding these challenges and being aware of your rights can help empower you to invest successfully and safely.
Throughout history, women have been paid less for their work than men. This is changing, but the wage gap can still mean women in general have less money to invest. Taking time off to raise children or to care for aging parents can hurt your finances. Less time in the workforce means fewer years of earnings. Changing careers or starting over when going back to paid work can mean smaller salary raises.
Traditional family roles can make it harder for women to invest. When you are the primary caregiver for children and other family members you have less time to think or learn about investing. And you have less time to actually do it. Women who are partnered with men are still less likely to be in charge of managing the family’s finances, including making investment decisions.
Many women are less comfortable taking charge of their finances and less confident about investing than men. This is concerning since women are fully capable of being successful investors and are often more financially literate than they give themselves credit for.
Why it matters
Through divorce and outliving husbands, most women are likely to find themselves responsible for their finances at some point in their lives even if they previously relied on a male partner. They are also more likely to be in control of the finances and investments of their aging parents and many are likely to inherit significant sums from their parents.
The good news
Studies have shown that women who invest tend to be more successful than men. Women look more closely at details. They talk through decisions and ask more questions, so they can be better informed. This can mean better thought out investment decisions and lower fees. Women also tend to focus more on how investing will help them achieve their family and personal goals than on chasing higher returns to earn bragging rights. This can mean women choose investments suited to their risk tolerance, timeframe, and purposes.
This guide can help
The Investor Rights and Protection Guide is for all investors. But the tips below will help you, as a woman, get the most out of this guide.
When reviewing Investments and Income Tax, think about how earning less while raising children might impact your choice between a Registered Retirement Savings Plan (RRSP) and a Tax-Free Savings Account (TFSA).
When reviewing Risk and Return, think about how staying focussed on your investment goals and timeframe will impact which investment products you choose.
When reviewing Rights for Security-type Investments, think about how asking questions and doing research can help you decide if recommended investments are best for you or only suitable.
When reviewing Recognizing a “For-sure” Fraudster, think about how doing your homework to check up on people offering you investments can protect you from being a victim of investment fraud.
When reviewing Advisor/Registrant Wrongdoing, think about how opening and reading your statements can help you monitor fees and performance and make sure you become aware of any wrongdoing early on.