Women are less privileged in the investment world. Experts give financial advice to female entrepreneurs | leadership

Women continue to excel in all aspects of business and exceed all expectations in entrepreneurship, yet they can struggle when it comes to personal finance.

In a report published by the Canadian newspaper “Financialpost”, author Rosalind Stefanak referred to a recent analysis of retirement account balances conducted by asset management company Mercer, which showed that women retire with 30% fewer account balances than men, and as a result they work for a longer period of two years. In addition, a 2021 Bank of Montreal survey indicated that women’s estimates of how much money they need to retire were 18% lower than men’s.

Below are tips from a number of experts who will help women find a foothold in the world of personal finance.

budget

Nicole Simmons grew up with her father, who started his own brokerage firm 30 years ago, and in doing so she saw firsthand the benefits of good money management. Nicole has always wanted a job where she could help others achieve financial success, especially black women.

She is now a partner in CPN, a financial services firm in Brampton, Ontario, of which 90% of her clients are female.

Simmons said budgeting is associated with negative things like spending cuts. Many people think that drawing up a budget means letting go of the things you love, but a budget is really just a spending plan that helps you set priorities. By making mistakes and not budgeting effectively, some women automatically believe that they will never make them, but not abandoning past mistakes and not being open to change will not help you move forward. when it comes to budget and therefore continue to follow the same habits.

Simmons stressed that it does not matter how much money you make, as long as you do not know what you are spending. She believes that the main common denominator among women is not to read their account statements to know most of what they are spending their money on. In turn, budgeting and spending tracking help ensure that your expenses match the lifestyle you want. Simmons also recommends setting up an automated savings account to make sure you save money every month.

It should be noted that your budget can be changed as needed to suit the different stages of your life. And your plans should be realistic about what you can afford based on your income so that you do not get frustrated.

Invest with confidence

Julia Chang, co-founder and CEO of Surrey-based Spring Planning, always receives emails from women in their twenties and thirties who are eager to learn more about investing and financial planning.

Chang says that women in North America are less likely to invest than women in Asian countries, for example. She believes this behavior stems from a negative view of mathematics and numbers, which contributes to the complexity of the investment process. It must be acknowledged that women’s feelings of inferiority do not stem from themselves, but rather from the influences of society.

Chang stressed that women do not need to understand how to calculate bond yields or how to trade to be a good investor. In the beginning, she advised to identify what you want to achieve and then how much money you need to save to achieve these goals. This confirms that both men and women need to learn the basics of investing and support and consult specialists.

Zhang said it is good to be careful when investing when planning ahead for your steps. Also think about the cash flow you need at different stages of your life. Do not hesitate to seek professional advice whenever you need to.

Prepare for better or worse

Elk Robach was 15 years old when her father passed away and left her family without insurance or any financial plan. As a former attorney, she founded Rubach Wealth in Toronto in 2012, whose primary mission is to educate women (who make up 70% of her clients) about the importance of women’s financial literacy so that they do not make or rely on ill-considered decisions. not. on their partners to make such decisions.

Although women have broken all barriers and expectations in the corporate world, Robach points out that they do not focus as much on finances as personal relationships. And there are women who are considering divorce but fear that they will not be able to afford to leave their marriage, even if they make between $ 300,000 and $ 500,000 a year. They may struggle to live with men who drain them financially as they have no control over their financial resources.

Robach stressed the importance of women making sure their husbands understand the importance of sharing responsibility for expenses. And if you are not able to talk openly with your partner about these things at the beginning of the relationship, you will probably have bigger problems in the future.

On the other hand, when the marital relationship ends, Robach deems it necessary to come to a reasonable settlement and think about all the details, especially if you both have children. And do not forget to follow up the debt on the joint accounts between you and agree to share these liabilities. It is also a good idea to keep extra money in your emergency fund to prepare yourself not to receive maintenance or child maintenance payments. Robach also advises setting goals that enable you to achieve financial independence regardless of your marital status and wealth.

Planning for retirement and beyond

Laurie Campbell has over 30 years of experience helping people manage their finances. As Director of Client Financing at Bromwich + Smith Inc., she currently works with a team of experts licensed to handle bankruptcy and debt relief and is always eager to help women better prepare for retirement.

Campbell noted that many have seen their mothers struggle to save money or leave financial planning to their husbands. In fact, women do not think about saving money at a young age, and they do not realize that the sooner they put in place a solid financial plan, the more money they will raise for retirement. On top of that, women still earn significantly less money than men, so it is not surprising that they have to work more years before considering retirement. Maternity leave and the time a woman takes to raise children also affect the amount of wealth she accumulates over the years.

Five to 10 years before retirement, Campbell advised avoiding investment risks that could affect your well-being during retirement. It is important to have a solid plan in place before you stop working. And if your company allows it, try a phased retirement plan that will allow you to work a few days a week for a few years, especially since many companies want to retain expertise in certain skills.

Estate planning advice: The wife must discuss the consequences of the death of one of them and the remarriage of the other with her husband. The spouses must develop alternative plans that will provide for the welfare of those in their custody after death.

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