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Majority of Canadian women investors are the financial decision-makers in their households

Among Canadian women who hold investments, almost all (92 per cent) say they are either the primary or joint financial decision-makers in their households, yet only half feel confident or knowledgeable about their investing abilities, finds a new CIBC poll.

“Women are leaning in and making major decisions on wealth and financial planning for themselves and their family,” says Sarah Widmeyer, Managing Director and Head of Wealth Strategies, CIBC. “However, our poll findings clearly show there is more work to be done to help women build confidence. A conversation only about investment returns isn’t enough for most women. They want to know how an investment strategy will help them achieve their goals.”

Key poll findings:

  • 92 per cent of Canadian women with investment portfolios are the primary or equal decision-maker responsible for their household’s investment decisions, including:
    • 46 per cent who say they’re the main decision-maker; and,
    • 46 per cent who share the responsibility equally with a spouse, parent or adult-child
  • 7 per cent defer responsibility to someone else, such as a spouse, partner, parent or adult-child
  • Only half feel confident (54 per cent) or knowledgeable (49 per cent) about investing
  • 29 is the average age when women start to invest
  • 73 per cent do not talk about investing regularly with their friends and family

 

Closing the Confidence Gap

The poll findings show that women tend to be conservative investors, unwilling to take on higher risk to achieve the possibility of greater investment returns. When thinking about their investment portfolio, they identified “safety” as being very important to them (72 per cent), then “growth” (58 per cent), and “liquidity” (33 per cent).

Women with a retirement portfolio currently invest their retirement savings primarily in guaranteed and savings products (48 per cent), stocks including mutual funds (37 per cent), and bonds including mutual funds (14 per cent). Moreover, thinking about their future investment plans, more women plan to invest in guaranteed and savings products (55 per cent) over stocks (29 per cent) and bonds (17 per cent).

“Women tend to view wealth in terms of security rather than opportunity,” says Ms. Widmeyer. “That can be an issue if you’re saving for a long-term goal like retirement. It’s not the investments so much as what it is you’re investing for that matters. My advice is to work with your financial advisor to figure out your financial objectives — whether it’s paying for a child’s education, buying a house, helping a parent, or trekking the globe in retirement – and learn how investment strategies can ladder up to meet your specific goals.”

The poll also found that 70 per cent of women say volatility in the stock market makes them nervous about investing and 69 per cent prefer socially responsible investments.

Millennials confused about investing

Millennial women (aged 18-34) are nearly twice as likely to manage their investments themselves, through an online or discount broker, and more apt to seek advice from friends and family than Generation X (aged 35-54) and Boomers (aged 55+). Still, the vast majority of millennials (76 per cent) admit they find “investing confusing.”

“It’s encouraging to see younger women taking charge of their investments and openly discussing and seeking advice,” says Ms. Widmeyer. “This is an enormous win for women, but it’s clear that more work is needed to build confidence.”

“When you look past the market noise, volatility and jargon, investing is quite simple. Asking questions and having conversations can help you match your goals with the appropriate investing strategy.”

Celebrating a trail blazed for women in finance

CIBC has a long history of helping women build their investment knowledge and confidence. The late Helen Cleveland, a CIBC Wood Gundy Investment Advisor, blazed the trail for women in capital markets in the 1920s. She opened the first-ever “Women’s Department” at Wood Gundy in 1927 focused on female clients and staffed entirely by women. She dedicated her life to educating women about finance and investments and after World War II ran a series of well-attended lectures – the first of its kind in Canada — entitled “This Business of Investing.” “We want women to learn their way around investing,” Ms. Cleveland said. To learn more about CIBC’s 150-year history, download the CIBC150 App and discover new stories every week.

Six steps to closing the confidence gap:

  1. Educate yourself
  2. Keep cool when investing
  3. Set clear financial goals
  4. Create an investment plan
  5. Diversify your portfolio
  6. Talk to a financial expert or advisor

SOURCE CIBC – Consumer Research and Advice

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How to remortgage with bad credit: Bad credit remortgages are a tricky thing to explain in one article and still make it relevant for everyone, because every situation is different. Lenders have certain criteria but then for certain customers, it may be possible to overturn a case that would usually be a decline, if it is a strong proposition for a lender regardless. Sometimes, customers with huge savings and great LTV’s can obtain bad credit home mortgage refinance deals regardless of their credit history. Below is a step-by-step guide of the best way to remortgage for bad credit customers, to help them prepare for applications and to assist them in gathering the right info for us upfront, so we can be best placed to offer the right advice. Don’t go to your bank! This is a very important step. I know it sounds so biased coming from a mortgage broker website but it’s true. We are NOT anti-banks, we all need them. We are pro helping you get what’s best. 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To remortgage with bad credit history it is vital to understand which issues will effect you, and how to overcome them by finding a lender or repairing your credit file. Remember: It’s what’s on your file that’s important, so any late payments or other issues that haven’t been registered with a credit reference agency won’t usually matter. The only exceptions to this are when you are applying for a mortgage with your bank, where you may have exceeded on overdrafts or credit cards or had issues with other arrangements like direct debits bouncing etc, and your bank keeps a record of them on your account. These can be things they take into account with their mortgage credit scoring system, but aren’t usually required to report to credit reference agencies so only your bank would know about them. In these instances where your bank may give you a low or medium score because of issues on your account, other lenders outside of that banking group may give you a higher score – Something to keep in mind if you’re struggling to work out why you’ve been declined. Also, it’s often the case where we help customers who have never checked their file and fear the worst, often having buried their heads in the sand, to then go on to find out things aren’t as bad as they thought. Actually, its surprising for a lot of people what is available in terms of bad credit remortgages in the UK, and that there are lenders out there with flexible criteria that still have competitive rates. NOTE: We advise you sign up for all three of Experian, Check My File, and UK Credit Ratings. Each lender uses a different one and often times they show different information. It’ll take an extra 5 minutes but if you’ve had problems and have been declined with a lender before, then it’s very much worth it. You will NOT be penalised or scored any differently for searching your own credit file with these agencies – credit score is only affected by applications for credit. AND – ITS FREE! Sign up for the free trials below and order your reports now. Sign up for your free trials here… Get your credit rating Find a broker… Establish your Loan to value (LTV) Work out the property value and the amount of deposit/equity you’ll have after the new mortgage, to define the LTV. This figure is important because lenders base their criteria around the different LTVs, where those with higher LTVs must have better credit ratings than those with lower LTVs. Customers at 90 usually require good credit scores and clean (or very light) adverse credit, customers at 85 can qualify with lenders with mild adverse credit or severe but historical issues, and customers at 75 or less can often get mortgages with heavy adverse credit issues (depending on how recent they were). 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