There are some women who wear the financial pants in their family and a lot of them do a very good job with it. At the same time, many many more women want to be more “tuned in” when it comes to the family finances but don’t get involved because they don’t know where to start, what their options are, or are afraid of stepping across gender lines when they aren’t confident in their knowledge.

“Work with what you have now and not what you think you might get down the road. Waiting for the knight in shining armor (and a sack of gold) can be a long shot. And then what if it turns out to be fools gold?” -SM

Interesting Stats About Women & Money

1) Women usually live longer and typically earn less than men 
2) Women influence most of the home buying decisions but don’t always control it 
3) Women in bankruptcy has doubled over the last 20 years (with a propensity to be higher if they have children) (Stats Canada) 
4) Women typically have smaller pension incomes than men (Stats Canada) 
5) Women in divorce situations have cited one of the major reasons was over debt and money problems

Why women can grab the proverbial bull, and be great investors:

1) Because they often seek the educated opinion of professionals such as accountants, financial planners, investment advisors, lawyers, and insurance experts. Let’s face it, there are some differences between the sexes, and one of them is that women don’t have the same ego problems some men do when it comes to asking difficult questions about the unknown. Think of the old cliche that women will get their faster because they will ask for directions when needed. There are no stupid questions when it comes to your financial future.

2) Because most will make an effort to understand the investment and shy away from investments that lack transparency. Lack of transparency in investment products is often a recipe for disaster down the road.

3) Because they can look at the family “big picture”. They tend to take more of a financial planning approach that encompasses many “what ifs” within the family dynamic.

4) Because they have wisdom for shopping (except for shopaholics). It wasn’t too long ago when women were given budgets to handle the family grocery needs. Budgeting has been passed down to women from their mother’s and grandmother’s, and great grandmother’s.

5) Because it’s instinctual. Back in the cave days, it was us who gathered seeds and nuts and preserved the meat to last over the winter. That is similar to saving money to be able to make it available and last during lean times (such as retirement).

6) Because they can. They just need to grab the bull by the you know what’s.

Options for women who want to handle the family finances with an advisor;

1) Find an advisor who provides full services. Investing in stocks, bonds, Mutual funds etc. all have a fee or commission involved. In order to get value for the fees, I find it’s best to get all of the extra added services which full service advisors provide at no extra cost. An advisor with experience can listen to you and help formulate plans that capture your goals. These extra services can include: financial plans, education plans, estate plans, tax planning, investment advice, portfolio monitoring.

2) Don’t be afraid to ask your advisor questions. If your advisor can’t answer your questions or gets annoyed at you for asking too many questions….run and find someone who can and will.

3) Find an advisor with experience. The world of investing is not something learned from a text book. It takes years of experience to understand the complexities of the market, investor behavior, investment characteristics and their behavior in different economic climates. Someone with a minimum of ten years experience should have knowledge enough to know what worked, what didn’t work, and what should work next. I’m astounded sometimes with the misinformation given to unsuspecting customers from inexperienced advisors. Try not to let yourself and your portfolio become the “mistake” they learn from in their career.

I know my industry well and I can tell you there is a mix of advisors with different capabilities. Some advisors are sales people, while others truly get satisfaction for doing the right thing and seeing the financial plans to fruition along side their clients. I am an investment advisor that provides full service. The reason I chose to become a fully licensed advisor is because I actually like to have access to the full range of investment choices. Without the choices, financial advice can be limited to a cookie cutter approach which is usually not always in the best interest of the customer. If I was in a different occupation and I was looking for an advisor I would want to know the difference

4) Interview 2 or 3 advisors and ask these questions:

a)what services they offer 
b)how they monitor investments 
c) how they choose investments 
d) if they have restrictions in their investment product lines 
e) how much experience they have 
f) if you will be assigned to a team member (if the advisor has a team) 
g) how they get paid 
h) what additional services they can provide beyond the basics 
i) if they have portfolio minimum size requirements in order to get these services 
j) how often will reviews take place.