Women typically earn less than male counterparts for similar positions, often spend a number of years out of the work force to have and raise children and women also have longer lifespans than men on average; so how do women save enough money to have a comfortable retirement?
Here are some top tips to achieve this goal:
Take control of your finances, be an active participant in managing family finances, do not leave the financial decision making to your spouse. Educate yourself about investing and money management, don’t rely on someone else to provide your financial security. Don’t be scared to talk about money with your spouse. It is very important, especially if you have opposite spending habits (saver vs spender).
Know and understand your risk tolerance – consider how much risk you are willing to take in exchange for the potential to earn higher returns. Guaranteed investment certificate rates are very low; so low that you are not keeping up with inflation and the purchasing power of your dollar declines every year.
Invest more, do not count on CPP or OAS to provide a comfortable retirement. The secret to creating wealth is spending less than you earn.
Always be conscious of your debt load and reduce spending where possible.
Participate in employer plans – if you are one of the lucky ones where your employer matches contributions, maximize your deduction.
Take advantage of tax planning; registered plans, including the TFSAs (Tax free Savings Accounts) allow you to enjoy the benefits tax free compounding over time.
Get help – a qualified financial advisor can develop your financial plan, or can help you stay on track. Don’t let the fear of losing money or fear of the unknown stop you from investing.
Your financial security depends on your attitudes towards money and your commitment to taking your financial future into your own hands.
Take charge of your financial future in 2017, call an advisor today!