Closing the Gender Investment Gap: 6 Strategies to Get Started

For years, research has found that gender can affect a person’s attitude towards money and generally women are more likely to focus on saving rather than investing. Even when women choose to invest, they tend to seek out lower risk investments. There are systemic reasons for this, including the gender pay gap, which then leads to a growing gap in wealth.

This gap has long worried experts. RBC’s Global Asset Management points out that women face unique challenges to building wealth and when women are ready to retire, often have saved only two-thirds of what men have saved. Yet, they must plan for a longer retirement, as women tend to outlive men by an average of four years.

Now, things are slowly starting to change. Women have more financial decision-making power than ever. They are earning more, controlling more wealth, inheriting more and starting more businesses.

Let’s build on this momentum with 6 strategies to get your started if you’re new to investing.

Set clear goals

Ask yourself what this money is for. Are you hoping to buy your first home? Planning for retirement? Eager to create new income streams? Whatever the answer, keep your eye on the prize. Setting your financial goals and keeping them fresh in your mind can help you start investing andstay motivated over time.

Learn the lingo

Before you invest, getting a handle on personal finance essentials can be a confidence booster and help set a foundation for your investment journey. It may make exploring your investment options easier and may even allow you to decode some of the more colourful jargon you’ve been hearing about lately.

Find your comfort zone

Take time to understand your own tolerance for investment risk – an investment that makes you feel nervous may not be the right one for you. A conversation with an RBC advisor can help determine you find the right investment fit depending on your needs.

Start small

You don’t need to invest everything, just invest. Small, regular contributions can make a big difference over time and they’re easy to do with a Pre-Authorized Contribution (PAC) Plan. Twenty-five dollars a month to your child’s RESP might not seem like much right now, but when they are ready to enroll in university the savings you’ve made will be beneficial.

Play the long game

During times of economic volatility, it may be tempting to try and time the market or get out of investing all together but remember, there’s an old adage that says, it’s time in the market that’s more important than timing the market. 

When in doubt, invest in YOU

Remember that it’s normal for some of your goals and aspirations to change over time, so find opportunities to assess what’s important to you at different stages of your life and make sure that your financial plan is still working for you .

Research shows that women are natural investors and once you get started, there is no telling exactly how far your investment journey might take you. Sitting down to talk with an advisor can be a great opportunity to ask questions, gain knowledge, and put together a plan that is right for you.

Share This Article