Too many women shy away from finances: TD

Canada’s women may not be taking full advantage of financial opportunities because of misconceptions about investing, according to the 11^th annual TD Waterhouse Women Investor Poll.

The survey of Canadian women ages 45 to 64 who share responsibility for their household’s finances, found that 45% think they need to have a substantial amount of capital to make investing worthwhile.

In reality one doesn’t need a vast fortune to start investing, says Sandy Cimoroni, senior vice-president, TD Mutual Funds. More important that up-front cash is that the individual has a pre-determined financial goal.

“You shouldn’t start investing without figuring out what you want to your investments to achieve,” she says. “Investing is an essential part of building a nest egg for a financially-secure future.”

The study also found almost half (48%) of participants thought it was important to be very knowledgeable to be able to work with an advisor. Having some basic knowledge of financial markets helps, but clients can depend on their advisor to provide the advice, education and updates they need to understand the markets.

“You shouldn’t avoid investing and working with an advisor just because you don’t feel like an expert,” said Cimoroni. “You don’t need in-depth financial knowledge or a significant amount of savings to get started. If you work with an advisor, they can help you separate fact from fiction to help you plan and work towards a successful financial future.”

The study also found that only 31% of women surveyed said they have a financial plan in place.

“It’s beneficial for everyone to have a financial plan—to establish your long-term financial goals, and then lay out the steps you’ll take in the short term to help you attain them,” said Patricia Lovett-Reid, senior vice-president, TD Waterhouse. “So whether you’re working to pay off debts, save for a major purchase or start planning for your retirement, a comprehensive financial plan is the key to success.”

Just over half (53%) of those polled agreed that there are differences in the way women approach investing and working with an advisor.

“From living longer than their spouse, to taking time off from work to care for children or aging parents, there are a number of unique factors women should consider that could have a significant impact on their investments,” says Cimoroni. “Part of being financially successful is determining your short, medium and long-term goals, and creating a realistic plan to follow in case those life events become a reality.”