Use My Typical Investment Scenarios based on Product and Portfolio Size
February 2019
It is a challenge to know what types of investment products and savings/brokerage accounts are available to you when you are not working in the securities industry. I have put together a chart (see link below) to let you know what I have seen in my experience as typical choices for you.
The first column shows fixed income options for all sizes of portfolios. If a broker insists on charging fees for investing in fixed income products, you should consider doing this investing yourself – unless the fee is discounted, and/or you are receiving extra advice for that fee. Such advice could be advice and assistance with appropriate diversification (e.g. allocation of guaranteed investments among various banks to ensure adequate CDIC insurance coverage) and finding higher interest products than what your own bank is offering.
The other columns relate to equity (stock market) investments. I have used a threshold of $300,000 under which many brokers will not accept you as a client; however, many brokers have much higher limits. Occasionally, lower limits are available (or exceptions are made), especially from younger or new brokers entering the industry, or if you have family connections who have more money who are already customers (or your advisor has hopes that you will recommend them).
As always, these are my thoughts, and others will have other opinions. Click here for my chart on Typical Investment Options Based on Product and Portfolio Size
Whatever you do, be smart about investing – you worked too hard to lose it. Also see my article on what to do if you are a new investor or have come into a large sum of money. See Investing new money.
Blair Corkum, CPA, CA, R.F.P., CFP, CFDS, CLU, CHS holds his Chartered Professional Accountant, Chartered Accountant, Registered Financial Planner, Chartered Financial Divorce Specialist as well as several other financial planning related designations. Blair offers hourly based fee-only personal financial planning, holds no investment or insurance licenses, and receives no commissions or referral fees. This publication should not be construed as legal or investment advice. It is neither a definitive analysis of the law nor a substitute for professional advice which you should obtain before acting on information in this article. Information may change as a result of legislation or regulations issued after this article was written.©Blair Corkum