It's important for a financial strategy to include investments for current and future goals, such as retirement. It's just as important to protect those investments against the potential impact of unexpected life events – such as serious injury, long-term illness and death. Building protection into your financial strategy can help you preserve your lifestyle and emotional well-being.
The growing impact of women's income on the household
According to IPC Private Wealth, Women and Wealth study, 90% of women will be required to be the sole financial decision maker.1 On average, the earnings of women who share finances with a partner account for 46.7% of their family's income according to Statistics Canada.2
Even if you aren't primarily responsible for your family’s financial well-being, you're probably heavily involved in managing your family’s money – including earning a salary, paying bills and deciding on purchases. With that as a starting point, you can learn more about how to protect your way of life against unexpected events.
It can be as simple as participating in one-on-one meetings with a financial advisor to identifying goals and solutions, and then incorporating protection into your budget. It’s never too late to take note of potential risks and do something about them.
Protect your ability to earn income
One of your most valuable assets is your ability to earn income. If that ability were derailed by an unexpected accident or extended illness, government or work-sponsored programs may help if you meet their qualifications, which can be strict. But they may not provide sufficient income replacement to maintain your lifestyle. A solid financial strategy includes solutions to maintain your lifestyle if you were to lose your income for an extended period of time. While it may be an unpleasant subject, taking action now will put you in a greater position of control if you or anyone else who depends on you ever need this kind of support.
Protect your day-to-day needs
While the above focuses on your work outside the home, if you have children you may have another significant effect on your family’s budget: the unpaid labour you provide. You may be called on to cook, chauffeur, keep house, tutor and care for young children. You can take measures now to ensure your family could pay for this care if you weren't there to provide it.
Protect your level of control over future health care needs
Women over 80 are nearly twice as likely to live in a nursing home or seniors' residence as men over 80.3 Would you prefer to receive care at home, in an assisted living facility or in a nursing home? Will your family provide your care or would you seek professional services? Will you be able to afford your first choice?
It's important to prepare for long-term care while you’re younger and healthier – and potentially have more flexibility with your expenses.
We can help
At Edward Jones, we can help you achieve your financial goals and assist you with planning for your long-term care needs. Contact your local Edward Jones financial advisor about a financial strategy that makes sense for you.
1 IPC Private Wealth, Women and Wealth, The Changing Face of Wealth in Canada, 2019
2 Statistics Canada, Women in Canada, The Economic Well Begin of Women in Canada, 2018
3 The Cost of Long-term Care: Canada's Retirement Saving Blind Spot, HOOP, 2018
Insurance and annuities are offered by Edward Jones Insurance Agency (except in Québec). In Québec, insurance and annuities are offered by Edward Jones Insurance Agency (Québec) Inc.