Savvy Investing for Savvy Women: Investment Strategies for the Canadian Road to Retirement (Part 2)
Welcome back, Canadian women! In Part 1, we explored the first steps to building a secure retirement. Now, let's dive into the world of investing!
Investing for Your Future
Saving is essential, but investing allows your money to grow over time. Here, Jennifer Snyder, Portfolio Manager at Doyenne Financial and a strong advocate for women's financial literacy, shares some key strategies:
Understanding Risk Tolerance: Jennifer Snyder Says: "Knowing your risk tolerance is crucial. Are you comfortable with some short-term fluctuations for potentially higher returns, or do you prioritize stability? As you approach retirement, you may want to shift towards income and capital preservation."
Investment Options Tailored to You:
Based on your risk profile, consider these options:
Fixed Income: GICs (Guaranteed Investment Certificates) and savings accounts offer low risk and guaranteed returns, ideal for preserving capital closer to retirement. We would almost never recommend these because they are illiquid, but they are an option
Bonds: These provide steady income payments and are typically less volatile than stocks. Consider government bonds for maximum security or corporate bonds for potentially higher yields, but with slightly more risk.
Balanced Funds: These combine stocks and bonds in one package, offering diversification and a balance between growth and income. The asset allocation (stock/bond mix) can vary depending on the fund's risk profile.
Dividend-Paying Stocks: These companies share a portion of their profits with shareholders regularly, providing a steady stream of income. Choose established companies with a history of reliable dividends. These are usually banks, utilities and large, well established companies that don’t necessary have a large growth trajectory ahead of them
Growth Stocks: If you have the time horizon and the risk tolerance, growth stocks are a great option for your portfolio. These could be established tech companies, like Tesla, Nvidia and Alphabet or any other sector. Basically, it’s stocks that may have larger volatility
Partner with a Professional:
Jennifer Snyder Says: " Whether you come to a Portfolio Manager by way of your financial planner or start out investing first, consulting a Portfolio Manager can be invaluable. We can assess your individual circumstances and create a personalized investment plan aligned with your goals. And if you don’t already have a planner, we can introduce you to a few to interview."
Stay tuned for Part 3: Catching Up on Retirement Savings in Your 50s/60s, where we'll explore strategies to get back on track!
In the meantime, empower yourself by learning more about investment options and consider consulting with Jennifer Snyder at Doyenne Financial!