At TD, we want to empower women to help them achieve their financial goals. That’s why to celebrate Women’s History Month, we sat down with three women who help others manage their finances here at TD: Kristine Garbutt, District Vice President, Canadian Personal Banking; Laura Barclay, Senior Portfolio Manager, TD Wealth; and Elisa Morden, Women in Enterprise Banker, Small Business.
We asked Garbutt, Barclay, and Morden some of the most common questions women have about their finances, including how to prepare for retirement and how to fund a small business.
Here’s what they had to say.
My partner handles our finances now. How can I get involved?
Laura Barclay, TD Wealth: A 2022 TD Wealth report found that only 20% of couples make financial decisions together, even though 80% of women will become the sole decision makers over their finances later in life. A good way to get involved in your finances now is to have a conversation with your partner to go over your income, expenses, debts, savings, and investments. Review important financial documents together, such as bank statements, credit card bills, investment accounts, insurance policies, and wills. Understanding where you stand financially is crucial.
You should work together to set joint financial goals. Whether it’s saving for a vacation, paying off debt, or planning for retirement, having common goals will help you stay involved. If you’re unsure where to start or need help planning, consider seeing a financial planner as a couple. They can help you both get on the same page and create a comprehensive plan.
You should also consider creating a budget together and having regular check-ins to track progress on your goals. Understanding your finances helps you to be prepared in case of emergencies, unexpected events, or changes in your relationship.
Do I need a financial planner if I can invest on my own?
Laura Barclay, TD Wealth: Some people are able to do the necessary research to successfully invest on their own. However, a financial planner can provide advice tailored to your specific goals, risk tolerance, and financial situation, saving you the time of having to do your own research.
They can help with retirement planning, tax strategies, estate planning, insurance needs, and more, ensuring all aspects of your finances work together.
Financial planners also bring professional knowledge and experience to the table. They stay current with market trends, tax laws, and financial strategies, helping you make informed decisions.
How can I save for my retirement?
Kristine Garbutt, Canadian Personal Banking: To prepare for retirement you want to consider your desired future lifestyle, healthcare costs, Canada Pension Plan benefits, and inflation. Understanding how much money you might need in retirement can help you better plan ahead.
In Canada, you have options such as Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs) that provide tax advantages for retirement savings. Eligible contributions to an RRSP provide a tax deduction so that the amount you contribute could lower your taxable income. Your money can grow tax-deferred within the RRSP by purchasing qualified investments, but you will pay taxes when you withdraw funds from the account. TFSAs, on the other hand, allow for tax-free growth and withdrawals. Consider a balanced investment approach by ensuring your RRSP and TFSA funds reflect a diversified portfolio of stocks, bonds, and other assets based on your risk tolerance and when you plan to retire.
You can set up automatic contributions to your RRSP and TFSAs, which can help ensure you’re consistently saving without needing to think about it. If you can, maximize contributions to your RRSP, especially if your employer offers matching contributions.
It can also be helpful to speak to a financial advisor who can help you navigate saving for retirement by ensuring you optimize tax strategies and make the best investment choices for your circumstances.
How can I get started with funding my business?
Elisa Morden, Small Business at TD: Did you know that 84% of women self-fund their business? My suggestion would be to look at government programs. There may be grants and resources available that you didn’t even realize you qualify for.
Here at TD, we also have a dedicated team of accredited bankers, who underwent additional training to be sure to work with women without biases. They help women business owners and advise on the types of loans that TD offers and point them to resources like Fundica, which has different types of grants available. You can easily access Fundica on our webpage www.td.com/wie for free.
I'm struggling to pay myself while keeping my business afloat. Any tips?
Elisa Morden, Small Business at TD: One tip is to look for ways to try and cut down on unnecessary costs. You may find it helpful to connect with an accountant, who may be able to assist with reviewing your costs to see where you could save on certain business expenses.
Another tip would be to work with a business banker. As a Women in Enterprise banker myself, I provide advice on how to use our online tools, such as our online cash flow tool, to help clients with their business goals.