RRSPS ARE FROM MARS, TFSAS ARE FROM VENUS?

CANADIAN MEN AND WOMEN ON DIFFERENT PLANETS WHEN IT COMES TO SAVING AND INVESTING: RBC POLLGender gap in money held in both RRSPs and TFSAs

There continue to be significant differences between Canadian men and women in how they save and invest their money, what they choose to invest in and how much money they invest, according to the "He Says, She Says" findings within the 22^{nd Annual RBC RRSP Poll.}
In Canada, more men than women save and invest in RRSPs (63 per cent compared to 58 per cent), but more women than men save and invest in TFSAs (53 per cent compared to 48 per cent). On average, the amount of money in RRSPs held by men exceeds that for women by $12,000 ($79,663 compared to $67,518); men also have slightly more funds in their TFSAs ($8,730 compared $8,007). Men are less likely to worry about balancing savings for immediate needs versus putting money away for the longer term or retirement (73 per cent compared to 80 per cent). As a top financial priority, women focus more on making regular payments to reduce or eliminate debt (50 per cent compared to 47 per cent); for men, saving for retirement is more important (51 per cent compared to 46 per cent).
"The differing attitudes of women and men about savings and investments have a real impact on their financial futures – how women and men look at RRSPs and TFSAs is a good example," noted Jason Round, head, Financial Planning Support, RBC Financial Planning. "TFSAs offer the flexibility of ready access to your money without tax implications – something women are telling us they are particularly interested in – but you don’t receive the immediate tax relief that RRSPs offer. The advice of a financial planner or advisor can help you determine how to balance your more immediate financial needs with your longer-term savings goals."
The RBC poll also found that men and women differ in the types of RRSP investments they prefer. Men opt for mutual funds (56 per cent) more than women do (37 per cent); more women than men invest in GICs or term deposits (33 per cent compared to 24 per cent). The differences are even more striking when looking at stocks, with more than twice as many men making these investments compared to women (22 per cent and 10 per cent respectively)."These are very similar to our findings last year, where we noted that women tend to be more conservative in their investments – they want steady returns and the flexibility to be able to take care of more immediate financial needs," added Round. "Men are more comfortable with investments that go through cycles. What’s missing for more men than women though is a financial plan that’s actually written down rather than in their head. Without a written plan, it can be difficult to see how your investments are supporting your short- or long-term financial goals or to take the right actions to stay on track."

Other findings from the poll that highlight the gender gap follow below:

22nd Annual RBC RRSP Poll: "He Says, She Says" findings	Canadian Men	Canadian Women
Hold RRSPs	63%	58%
Hold TFSAs	48%	53%
Average reported market value of RRSPs	$79,663	$67,518
Average amount of money in TFSAs	$8,730	$8,007
Building investment portfolio	26%	19%
Began saving for retirement by age 34	56%	46%
Have a financial plan	52%	48%
Financial plan is on paper	43%	51%
Very involved with financial plan	35%	41%

Sometimes we need to stop and see where we are at with our savings & retirement strategies. 

   I just wanted to let you know that I work with an excellent accredited financial planner, Joanne McMurray-Kohl, who through our program: Your Future by Design can help you develop investment strategies, minimize taxes and plan for your retirement.

    We encourage you to take the time now, to plan for tomorrow.

Please call:

  

Joanne McMurray-Kohl
Financial Planner, Investment & Retirement Planning
Royal Mutual Funds Inc.
Phone (780) 838-3882
Email: joanne.mcmurray-kohl@rbc.com

 

What to take to bed with you!

I received this in a chain email, and I usually automatically delete them without a second look.

I am glad I read this one as it had a smart idea, that I have never thought to do.

Put your car keys beside your bed at night. 

This tip came from a neighborhood watch coordinator. Next time you come home for the night and you start to put your keys away, think of  this: It's a security alarm system that you probably already have and  requires no installation. Test it. It will go off from most everywhere  inside your house and will keep honking until your battery runs down or until you reset it with the button on the key fob chain. It works if you park in your driveway or garage.  

If your car alarm goes off when someone is trying to break into your house, odds are the burglar/rapist won't stick around. After a few  seconds, all the neighbors will be looking out their windows to see who is out there and sure enough the criminal won't want that. And  remember to carry your keys while walking to your car in a parking  lot. The alarm can work the same way there. This is something that  should really be shared with everyone. Maybe it could save a life or a sexual abuse crime.  

P.S. I am sending this to everyone I know because I think it is fantastic. Would also be useful for any emergency, such as a heart attack, where you can't reach a phone. My Mom has suggested to my Dad that he carry his car keys with him in case he falls outside and she doesn't hear him. He can activate the car alarm and then she'll know there's a problem.  

Tell your spouse, your children, your neighbors, your parents, your  Dr's office, the check-out girl at the market, everyone you run  across.  Put your car keys beside your bed at night.  

If you hear a noise outside your home or someone trying to get in your house, just press the panic button for your car.The alarm will be set off, and the horn will continue to sound until either you turn it off or the car battery dies.  

RBC Mortgage Rates for the week of January 23, 2012