Why Women Need to Invest

why women need to invest

Why Women Need to Invest…

So, why do women need to invest anyways?

To make our money work for us, instead of us working for money.

Easy to say, right?

Basically, if we don’t do it for ourselves, we should not anticipate that others will do it for us. Whether they be our spouses, government social security or company pensions. Sounds grim? Allow me to go on…

Statistics

Besides this point, there are a few other stats to bring to your attention. Although not all women are the main breadwinners of their family, they control a large portion of the financial decisions that go on in a household. (See debatable stats here) I am of the opinion that those stats are higher particularly if there are children in the household. We yield much of the responsibility of where and how the family income is spent, and therefore should not shrug off our responsibility to wise fiscal management.

Another, but rather sad statistic here in Canada, is that women are more likely to be in ‘low income after tax’ in the later stages of life compared to men. Although the reasons vary for why this is (I can only assume – job type, no pension, child rearing), this stat would hopefully provide more reason for women to invest.

Financial Goals

Generally speaking, as women, we also tend to have different long term goals when it comes to saving and investing. Through my observations, many men tend to focus on #FIRE, or financial independence retire early. That’s not a bad thing, but for most women that might not be the primary concern. I can’t speak for all women, as there are plenty of women interested in #FIRE, however, I am more concerned about the well being of my kids and our quality of life. In my mind, sometimes I think to myself… “Why would I want to retire early? I’m already at home all the time! Let me afford to do something enjoyable.”

As well, I can’t emphasis enough the importance of wanting financial security. Let’s face it, life happens and someone has to deal with it. For example, instead of posting this article yesterday, DH was at the emergency all day for septic bursitis… fun. No limbs lost yet! Real life means a disability, job loss, sick kids, temporary illness, bereavement, care of the elderly… and much of this falls on our shoulders. It also makes our financial situation more precarious. These situations greatly impact our current and future income as women.

So, heck yeah… I want more security and an enjoyable life.

And nothing brings security or being able to afford ‘divertissements’ (French for fun+entertainment) like consistent and varying streams of income. Passive income streams other than working, such as the dividend income I speak of so often that can come from owning stocks (more on this later in Part 3).

When it comes to income, the media likes to talk about the ‘wage gap.’ I’m not here to debate whether it exists or not for women. However, there is no wage gap in dividend investing. The best dividend companies give raises and do not discriminate against individual shareholders because they are women or men.

I could go on about Canada’s pitiful income growth (Rob Carrick wrote an interesting article), inflation and our current purchasing power but I’ll leave that for another day.

If you are a fellow gal reading this, please consider saving and investing as a means to achieving whatever your longterm goals might be. 

Happy investing,
Heather

Join me for Part 2 next week where I will discuss ‘Why You Should Start Investing Now‘ and not wait.

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What I’m Reading | September 2018

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This post contains affiliate links.

A nice short post today.

I finished Common Stocks and Uncommon Profits by Philip Fraser earlier than expected. (Thanks Audible!) However, I’m not sure how much I retained. My kids have amazing mom-is-busy-radar. “Look, mom is reading. Now is the time to ask her for x, y, z…”

If I sneak off to my bedroom. The door is closed and locked. The kids are at the door. “Mom, the door is locked. Can you get my x, y, z…”

Me, “Go ask your father. He said he would watch you while I read.”

Kids, “He’s already asleep on the couch.”

Husband, “I’m awake. They just don’t come ask me.” (Insert laughing face emoji here…)

The only difficulty I had with Common Stocks and Uncommon Profits was it’s broadness. For some reason my brain was expecting something more practical. However, it still contained good insight for those whom I would consider ‘private investors’, i.e. not me or not me yet.

This month I’m going to reread Stephen Jarislowsky’s Investment Zoo. I inherited it from my dad’s collection of investment books. It’s a short read, so I’m hoping I can squeeze in a second short investment book this month if I’m lucky.

Really lucky.

Wish me luck. I might just have to escape to my mini-van to read.

Happy investing,
Heather

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How to Start Investing…

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Hey Everyone!

The whole purpose of my blog is to get more women investing and bring you along on my investment journey. There is no better way to get more people investing than to show them how it’s done.

Let me help you get your hands on your first share!

To help you achieve this goal, I decided to create a 5 part blog series on how to start investing, with a particular focus on those who may not have a large amount of disposable income or knowledge on where to start. Which is exactly how I started, so have no fear!

In this 5 part series, I will touch on the following topics:

  • Why women need to invest…
  • Why you should start investing NOW…
  • How to buy your first share…
  • How to pick stocks easily and where to put them…
  • Other tips and tricks…

So, without further ado, let’s get this series started!

Happy Investing,
Heather

Note: As I publish each post, I will put a link on this page 🙂

investing
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Dividends | July 2018

 

I am finally passing the $400 mark towards my goal of $750 in annual dividends and I feel as though I am in the home stretch.

Here is my takeaway for not making June and July purchases.

It’s okay. The world will not end, and I still get paid. My account still grows even if I am unable to add new money. I still get pay raises (as my dad would say), even though I do not technically work outside the home for a salary. And lastly, I got a bigger pay raise this month than my husband, hahaha. Thank you RBC! (I hold RBC in another account which I will post on later in September)

TFSA

BCE – $9.82
TransAlta Renewables – $6.66
Inter Pipelines – $11.48

RRSP

As always, Plaza Realty REIT brought in $6.67.

July Dividend Total

2018 Dividend Total: $417.65
2018 RRSP Dividend Total to $32.46

Only $332.35 to go! (not including my RRSP… In my mind RRSPs don’t count.)

Happy Investing,
Heather

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Dividends | June 2018

Non-Registered

May ended with my 2018 dividend goal at $234.77. However, my June dividends brought me a huge boost! My Enbridge DRIP brought in $135.93  which was then reinvested, purchasing 3.45 shares at $39.37. Bringing my total holdings to 204.041 (Love that third decimal point!)

TFSA

My TFSA had three dividend payers – Fortis, Inter Pipeline and TransAlta Renewables, which paid as follows:

Fortis – $0.85
Inter Pipeline – $11.48
TransAlta Renewables – $6.66

RRSP

Trusty ole’ Plaza Retail REIT dividends brought in $6.67.

June Dividend Total

2018 Dividend Total: $389.69
2018 RRSP Dividend Total to $25.79

Halfway to my 2018 goal of $750!

Happy Investing,
Heather

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Article Share | The High Cost Of Special Needs Programming | The Globe and Mail

Read the Globe and Mail Article here.

Anything special needs related, especially the high cost of therapy hits home. Back when our oldest was 3 until the age of 5 1/2 he was in ABA or Applied Behavioural Analysis, one of the therapies mentioned in the Globe and Mail article. And yes, it did cost $5000 per month for only 4 1/2 days a week of therapy. In fact, the price has increased since then due to the minimum wage hike in Ontario forcing the per hour cost of junior therapists to go up to $15/hour. (If you were wondering if the therapy works. Yes, emphatically yes, the therapy did help our son tremendously as you can see here in this video).

In total, for 14 months of ABA therapy we dished out roughly $75,000 CAD. No small change when you are in your twenties and not established in a career. We stopped only because we ran out of money and decided to move so our son could attend a public school with ample support instead of spending more on private education. You gotta’ do what you gotta’ do.

However, I would say this experience is one of my huge motivators for saving. The possible future costs associated with our son’s condition are unknown but not unplanned for.

More reason for me to keep investing.

Happy Investing,
Heather

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