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4 Investment Rules Every Woman Should Follow

Find out everything you need to know to ensure you stay financially secure throughout life’s ups and downs

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Why women need to invest more than men

Why women need to invest more than men

When it comes to saving enough for retirement, women face barriers that are gender-specific. For example:

• On average, hourly wages for women are still lower than for men. Over time, this leads to a significant wage disparity and fewer opportunities to save.
• Women are primary care givers for children and elderly parents, resulting in more work absence and reduced earnings.
• Women, on average, live longer than men and therefore may need more retirement saving to fund a longer retirement.
• Studies show many women can lack confidence when it comes to making investment decisions.

How can women overcome these barriers and start building a sound financial future? Here are four basic rules of investing that you can follow.

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1. Understand how much you'll need to save for a financially secure retirement

1. Understand how much you’ll need to save for a financially secure retirement

Consider how long you might live-if you are in good health, assume your money will have to last until you are 90 years of age. Think about what your retirement will look like and how much money you will need to enjoy that lifestyle. Then, determine how much you’ll need to save each year to reach your investing goal.

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2. Don't rely on your spouse or partner for your retirement plan

2. Don’t rely on your spouse or partner for your retirement plan

Take control of your own financial future: While it’s never too late to start, it’s important to save consistently, stay on track and stick with a solid financial plan that takes your unique needs into account.

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3. Make your money last

3. Make your money last

One of the top concerns for retirees is making their money last. The best plan is to have enough savings so you can live off your investments growth and returns. Choosing the right investments is critical.

Here are some key questions to consider:
• Should I invest for safety or growth?
• How do I balance risk and return?
• What will it cost to invest?

Look for ways to grow your savings with a level of risk you can tolerate. If you invest only in very safe options, your savings may not last as long as you will need them. Always know what you’re paying and shop around for the best deal.

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 4. Learn about investing

4. Learn about investing

The more you read about the subject, the more you’ll understand what you’re investing in and how it will affect your overall financial picture.  Research and understand the role retirement planning plays in your financial plan.

Once women begin to take control of their financial future, they are statistically better investors than men because they tend to take a longer-term view versus the shorter-term, aggressive style of many men.

 
Learn more about planning your retirement, what your lifestyle will look like, and reaching your retirement savings goal.

The Investor Education Fund offers unbiased financial information to the general public via GetSmarterAboutMoney.ca. The not-for-profit organization was established by the Ontario Securities Commission (OSC), and is funded through OSC enforcement settlements.