Simple still the best approach for female investors

Hey there, time traveller!
This article was published 04/06/2025 (425 days ago), so information in it may no longer be current.

Dear Money Lady,

I am a single mom and wondering how to get started investing. The market right now is really scary with all the U.S. tariffs and the stock market going down. Should I stick with my high-interest bank account until things get better?

Jan

No, Jan – now is the time to invest in the market. Everything is “on sale” and you could earn a lot more from your investments than you would by keeping your money in a bank account, especially when the market turns, as it will.

More women like Jan need to be looking at investing for the future but unfortunately the statistics on women investing today are quite dismal. Because we are still experiencing a gender wage gap, it makes it even more necessary for women to invest today.

Here are some facts – women on average earn 20 per cent less than men. When broken down by demographics the picture is alarming. Asian women earn 13 per cent less, white women earn 18 per cent less, black women earn 35 per cent less and all other women (visible minorities) earn 42 per cent less. Over an average women’s working career, it is estimated she will earn $450,000 less than the average white man will earn over his lifetime. This reality makes it imperative, especially for single women, to invest sooner so they can use the benefit of time to grow their investments, (through dividends and compounding). Women tend to be much more conservative with their investment decisions than men and typically feel intimidated by a financial advisory community of mostly men.

Ladies, start believing you can be smart with money; learn more. You just need to ensure you invest enough of your money to provide for the future you want.

People often pursue complicated investment strategies, believing the complexity will give them a better return. Some advisers will take it a step further, talking about the amount of time they must spend evaluating different companies for things like pricing, dividends and growth potential, to convince clients that their investment strategy is the best. Personally, after 35 years in the industry, I have found that there is no need for complexity – simple is still the best.

Ladies, here is how you should get started – I want you to choose three or four ETF index funds (exchange traded funds). Index funds are a great way to get into the market because they’re professionally managed funds that follow a benchmark index. They provide superior diversification, lower risk and lower costs. You want to choose different asset types – U.S. stock, Canadian bonds and international stocks. Stay away from emerging markets for now and stick to funds that follow the NASDAQ and the S&P.

Here are some funds you could check out:

• Fidelity Zero large cap index;

• BMO S&P 500 index ETF;

• TD Active Global Dividend ETF;

• TD Active US Dividend ETF;

• Vanguard S&P 500 ETF;

• Vanguard Total Stock Market ETF;

• Vanguard Conservative ETF;

• Vanguard Global Momentum ETF.

Saving money in a high interest savings account is good for emergencies or short-term commitments, but to keep up with inflation, you will need to invest and get your money working for you. Women live longer than men and will most likely need more money to support their retirement. Don’t wait ladies – get started now.