Evolving Professional Advice: Women to Control Billions by 2028

The financial influence of women in the Canadian economy is on the rise and professional tax and financial advisors need to pay attention to better understand how to best help, in the massive accumulation of wealth taking place, according to a March 2019 report by CIBC Capital Markets *.

According to the study, women now control $2.2 trillion in financial assets directly, and this amount is supposed to rise to almost $4 trillion by the year 2028. With this in mind, how can wealth planning strategies assist women with particular needs in their new financial empowerment?

There are in fact some unique factors affecting wealth management when women hold such significant financial power. Firstly, there’s the fact that women tend to live longer than men. As such, if they are married and outlive their spouse, some women are left in control of considerable wealth later in life, often with little experience in managing such large sums or significant tangible assets, such as real estate or active business shares. But, there are additional challenges that come into play.

As an example, with diseases such as Alzheimer’s on the rise, which occurs more significantly in women, addressing financial stability is a priority when it comes to planning for increased costs of long-term care. Often, it’s a responsibility that falls upon the whole family, especially adult children who need to be part of financial planning conversations as caregivers.

The stewardship of wealth for potentially vulnerable clients can come with new and different challenges – especially when intergenerational factors come into play – it’s an important role for an advisor and it’s something that needs to be navigated tactfully.  Preferably it is a conversation that occurs when everyone is healthy, and in conjunction with both tax and financial advisors to maximize financial opportunities available, especially through the tax system.

It’s also important to understand that taking on a financial caregiver role can be a daunting undertaking for some children, when they are thrust into a situation that they are not prepared or qualified for and it can be very expensive as people take time off from work to help. In these instances, it may be possible to tap into the EI Compassionate Care Program which can provide up to 6 months of benefits. 

These situations often cause rifts within families, as well, when siblings disagree about caregiving or financial decisions. These circumstances require a qualified intermediary to assist, and as an advisor, there’s an opportunity to make a big difference. This topic will be discussed in detail at the upcoming CE Summits, with special guest instructor Karen Henderson who is an expert in navigating these difficult challenges. The early registration deadline is May 15 and registrations will be on a first come, first served basis for what is sure to be a full house of advisors who need help in this area. 

A proactive approach to personal tax filing and planning can help women – and their concerned spouses and families -  plan for these future uncertainties, and grow wealth that will give them financial empowerment to withstand extra and unforeseen future costs.

*CIBC Report

Additional educational resources: Improve your knowledge and fill a clearly needed role by enroling in the Personal Tax Filing and Planning certificate course and studying online. Ready for a sneak peek of this course? Take a free trial and check it out for yourself!

Or, get up to speed and incorporate the latest tax changes from the 2019 Federal Budget into your tax planning strategies with all client profiles. Attend the Spring CE Summits. 

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