Over the last few years, financial institutions in Canada have been exploring unique concerns regarding Women and Wealth. That’s because historically, women haven’t been as hands-on in managing their finances as men. But what about the other sex? June is Men’s Health Month at League— so we here at Kind Wealth decided to explore whether there are specific areas where men can improve their “fiscal fitness.”
Risky business
Studies have shown that men are much more likely to take on financial risk than women — which could hurt them in the long run (when the risk doesn’t get rewarded).
This “risk-loving” approach includes overconfidence when making investment decisions, reduced awareness of the risk in the strategies men adopt, and focusing more on “big wins” when investing, instead of looking to achieve the desired result with the least risk.
When working to achieve your financial goals, Financial Planners typically advise that slow and steady wins the race. Instead of focusing on the “next big thing” — think Bitcoin or marijuana stocks — pivot to a well-diversified strategy with the right amount of risk to get you to the finish line over the long term.
Doubling down on debt
Statistics suggest American men have more consumer debt (like credit cards and loans) and larger mortgage balances than their female counterparts. When interest rates rise, these larger debt levels can be concerning, because more after-tax income is needed to cover interest costs, resulting in less cash flow available for other financial goals.
Pro tip: if you have more than one type of debt, focus on paying the most expensive debt first (the one with the higher annual interest rate). For example, direct payments to credit card balances before increasing payments on lower-rate debt like student loans or your mortgage.
No need to be a one-man wolfpack
There’s no shame in getting help pulling your finances together. Most of us aren’t experts in all areas of life, so why should your finances be any different?
If you’ve hit the wall and need to call in a coach, try finding a Fee-Only Financial Planner: that’s someone who doesn’t sell products, only advice. They can help you in putting the pieces together — and you’ll be healthier for it!
About the author
Shay Steacy, CFP, is Lead Financial Planner and Principal with Kind Wealth. Read Shay’s bio or connect on LinkedIn.
