Finances for Women
Why do women need to be more involved in their personal finances?
Women have come a long way when it comes to achieving equality. But a lot of us still aren’t comfortable making critical financial decisions.
This needs to change, though – because the best way to be secure in your financial future is to take charge of it!
Why should I be more involved with managing my finances?
Women often juggle many things at once – a job, household responsibilities, and then often children, their parents, and their in-laws! Finances may seem like low urgency, however in reality it is a high priority. Women who prioritize their own financial stability before taking care of everyone else are able to give from a more confident, secure and fulfilled place.
Here are three ways women can take charge of their finances:
1. Start Early
2. Get Prepared
Gain confidence and clarity with your finances. Find a trusted advisor to help you navigate your journey.
3. Protect your Financial Future
Why aren’t women more connected with the financial services industry?
It’s not that women can’t understand how investments work, what risk is, or how to set up an RRSP or a TFSA. But because women tend to view money differently than men do, we may come across as uneducated or uninterested. And some financial advisors still tend to focus only on the male partner, even when speaking to both partners.
Men tend to be more interested in facts and figures (such as rate of return) regarding money, whereas women are more interested in how our investments will improve our lives and those of our loved ones.
Both approaches are valid! So we need to speak up and have our voices heard and our questions answered.
How can you increase your confidence in dealing with financial matters?
The best way to increase your confidence in dealing with financial matters is to ask questions – and expect answers! Whether you’ve just started your career or you’re halfway through it, it’s never early or too late to become proactive learning about finances and making your own financial decisions.
Increasing your financial literacy will make you more comfortable managing your own investments. Knowledge leads to confidence!
Retirement Planning for Women
When it comes to retirement planning, women face different challenges than men do. That’s why we’ve put together this six-point plan to help women can plan for their retirement.
How is retirement planning different for women?
The main difference between planning for women are:
1. Women live four to five years longer than men.
2. They often entrust retirement planning to their spouse.
3. They are more concerned than men that they’ll outlive their savings.
What factors do women need to consider when planning their retirement?
When putting together your retirement plan, you need to consider:
1. How soon do you plan to retire? How many years do you need to prepare for?
2. Whatever something costs now – it’ll likely cost more in ten years.
3. Changes in expenses. Some expenses will go away during retirement (like saving for retirement!), but you’ll have to pay for new costs likes cleaners and help with yard work.
4. Asset allocation. You need a TFSA and an RRSP. Both accounts should contain a diverse portfolio to help protect you against risk.
5. Rate of withdrawal. Determine how much you can withdraw each month during retirement and which accounts you should withdraw money from first.
How do you budget for retirement?
It can seem overwhelming to try and budget for your retirement – but with the right tools and support in place, you can do it!
One great FREE tool to help you get started is the Canadian Retirement Income Calculator from the Government of Canada.
In your retirement years, you’ll have up to three sources of income:
• Government Pension plans. Quebec residents receive income from the Quebec Pension Plan (QPP). All other residents of Canada receive income from the Canada Pension Plan (CPP). All Canadians can also receive benefits via the Old Age Security (OAS) program.
• Supplemental pension plans from your employer. You need to know if you have a defined benefit plan or a defined contribution plan, as well as whether your plan is indexed or not.
• Personal savings. These are both registered and non-registered investments and other sources of income.
Can you retire on government benefits alone?
Don’t depend on government benefits alone for your retirement! How much you’ll receive from CPP or QPP will depend on how much you’ve contributed. OAS is guaranteed and reflects the cost of living
What’s the difference between retiring as a couple or on your own?
Couples can benefit from tax advantages not available to single retirees and take advantage of income splitting.
How can you take control of your retirement?
It’s never too early or late to start planning for retirement – so contact us to set up a plan or get some advice.
Ready to get started?
We know you can take charge of your finances – and we’re here to help answer any questions you may have! Reach out to us today to get started taking control of your financial future.
I met Nancy the year my husband had died. I was thinking about an early retirement but I didn’t know how to make it work. Nancy really ” got me ” – she took the time to understand what was important to me and provided some very creative solutions. She gave me confidence and peace of mind. I highly recommend her services.
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Financial Health & Wellness.
Family Finance Guide
The Plumtree financial guide is an excellent way to start making robust financial decisions. We outline how to put together a solid financial plan and help you get on track to financial health and wellness.