When it comes to managing their finances and investments, women are no longer sitting on the sidelines. A recent poll by TD Waterhouse Canada Inc. revealed that 92% of Canadian women take an active roll in household budgeting and investments. Their incentive for an interest in investing? Three out five women (60%) say they are spurred on by the desire for financial independence, while 77% say saving for retirement was their prime motivator.
“More Canadian women are realizing that having their own financial nest egg is essential to achieve independence, a comfortable retirement and peace of mind,” says Patricia Lovett-Reid, senior vice-president of TD Waterhouse. “This is good news when you consider trends such as high divorce rates, the fact that one in five families with children is headed by a single women and that single parent families now have more children than married couples.”
Still, less encouraging, says Lovett-Reid, is that many women don’t know how much income they’ll need in retirement. “Even with the best intentions,” she says, “if you don’t have a goal, you can’t have a plan. The sooner women develop a plan and put in play, the closer they’ll be to becoming financially independent.”
Other highlights from the study:
? Three in four women (77%) with household investment responsibility say they invest differently than men. Some 29% believe they have a different risk tolerance; 10% say they are cautions and plan differently; 9% have a different investment horizon and 8% believe they are more emotional investors than men.
? Some 42% of poll respondents say that financial advisors are their main source of financial information, followed by the Internet (11%), media (10%) and family and friends (10%).
? Female investors aged 36 to 45 are the most likely to invest with the assistance of a financial professional.