Women need to take charge: TD

Canadian women need to step up and take charge of their finances if they want to feel secure, according to one prominent woman in the financial services industry.

Only half of Canadian women are satisfied with their investments, while the remaining 49% are concerned or frequently worried, according to the 10th annual TD Waterhouse Female Investor Poll. A lucky few — 4% — said they felt “blissful” about their investments.

“That feeling of ‘bliss’ may seem out of reach for most women, but what we often don’t realize is that we have more power to shape our own financial futures than we give ourselves credit for,” says Patricia Lovett-Reid, senior vice-president with TD Waterhouse. “The first step is deciding to take action.”

The first step on Lovett-Reid’s action plan? Go out and find an advisor that you trust — good advice for men as well. The TD survey found that 60% of women who sought out professional advice had a financial plan, compared with 16% of those who did not have an advisor. Those who had a plan were more likely to feel financially successful than those who do not (84% versus 54%).

While 92% of respondents agreed that it was important to start investing as early possible, only 33% said that they contribute to an RRSP.

The survey found that 63% of women feel they are financially successful, defining that as being able to pay the bills on time and having enough money saved for emergencies.

“Looking ahead to your retirement years, it’s important for women to measure their financial success against specific and targeted investment goals,” says Lovett-Reid. “While being able to pay the bills and having money saved for emergencies are essential, women need to ask themselves important questions like, ‘Am I going to be able to retire early?’ ‘Will I be able to maintain my current lifestyle in retirement?’ and ‘What sort of legacy can I leave behind for my children?'”

When asked what it would take for them to feel wealthy, 16% said they would need to have at least $1 million in investable household financial assets. Another 27% said they would feel wealthy with between $300,000 and $999,999.

About one-quarter said a mere $50,000 in financial assets would suffice. These could be the same quarter that also said they currently have no financial assets whatsoever.

Thirty percent were doing a bit better, with less than $50,000, while 33% have more than $100,000. Just 1% said they already had $1 million.

(11/09/10)