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Facts and fiction: The truth about women and investing
- 11th annual TD Waterhouse Women Investor Poll reveals Canadian women may be missing out on investing opportunities -
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TORONTO, Nov. 16, 2011 /CNW/ - Do women have different investing needs and priorities than men? Does it take a lot of money to make investing worthwhile? The 11th annual TD Waterhouse Women Investor Poll, which surveyed Canadian women ages 45 to 64 who share in the responsibility of their household's finances, found that Canada's women investors may not be taking full advantage of opportunities to invest because of misconceptions.
"Investing is an essential part of building a nest egg for a financially-secure future," says Sandy Cimoroni, Senior Vice President, TD Mutual Funds. "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."
Cimoroni and Patricia Lovett-Reid, Senior Vice President, TD Waterhouse, have teamed up to offer advice and insights for women investors.
Fiction: A financial plan isn't necessary unless you have significant debt or are close to retirement.
Only 3 in 10 (31%) Canadian women say they have a financial plan.
"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. 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," says Lovett-Reid.
"It's disappointing to hear that so few Canadian women have a documented financial plan. It's an essential way to ensure your investments are in line to help you reach your financial goals," says Cimoroni. "An advisor can help you develop a financial plan that acts as a roadmap to whatever you're trying to achieve. It also takes into account potential speed bumps along the way, so you don't lose sleep at night worrying about your investments."
Fact: Women have different considerations than men when it comes to investing.
Just over half (53%) of Canadian women agree 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."
"Women may also look for a different experience than men when it comes to working with an advisor and making investment decisions. For example, they often highlight the desire for more financial education and market information from an advisor so they feel like they are a partner when making investing decisions and to help them feel more confident in these decisions," says Lovett-Reid.
Fiction: You need a lot of money to make investing worthwhile.
Forty-five percent of women surveyed think you need to have a substantial amount to invest.
"You really don't need to start with a lot of money, but you should determine your goals before you start," says Cimoroni. "Just like you couldn't get on a plane without knowing where you were going, you shouldn't start investing without figuring out what you want to your investments to achieve."
"By setting regular automatic deposits, no matter how large or small, you'll be able to watch your money grow over time," says Lovett-Reid. "By taking advantage of compound interest, you can really make your money work for you."
Fiction: To work with an advisor you need to be very knowledgeable about financial markets.
While almost half (48%) of Canadian women agreed, you don't need to be an expert to work with an advisor.
Having some basic knowledge of financial markets and the way they work is important. However, the reality is that your advisor is there to provide the advice, education and updates you need to understand the markets. "You shouldn't avoid investing and working with an advisor just because you don't feel like an expert," adds Cimoroni.
About the TD Waterhouse Women Investor Poll
The TD Waterhouse Women Investor Poll surveyed 1,000 Canadian women aged 45-64 who share in the responsibility of planning the finances for their households. Results for the study were collected through an online survey of Canadian women investors by Environics Research Group, conducted between September 22-28, 2011.
About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group (TD). TD is the sixth largest bank in North America by branches and serves approximately 20 million customers in four key businesses operating in a number of locations in key financial centres around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust, TD Insurance, and TD Auto Finance Canada; Wealth Management, including TD Waterhouse and an investment in TD Ameritrade; U.S. Personal and Commercial Banking, including TD Bank, America's Most Convenient Bank, and TD Auto Finance U.S.; and Wholesale Banking, including TD Securities. TD also ranks among the world's leading online financial services firms, with more than 7 million online customers. TD had CDN$665 billion in assets on July 31, 2011. The Toronto-Dominion Bank trades under the symbol "TD" on the Toronto and New York Stock Exchanges.
About TD Waterhouse
TD Waterhouse represents the products and services offered by TD Waterhouse Canada Inc. (Member - Canadian Investor Protection Fund), TD Waterhouse Private Investment Counsel Inc., TD Waterhouse Insurance Services Inc., TD Waterhouse Private Banking (offered by The Toronto-Dominion Bank) and TD Waterhouse Private Trust (offered by The Canada Trust Company).
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