by Scott Ronalds
Millionaire. It’s a label that evokes images of financial security and well-being. Popular culture loves it and is rife with references, from Who Wants to be a Millionaire? to Million Dollar Baby and Slumdog Millionaire. Even the west coast’s favourite hockey team was once named the Vancouver Millionaires.
Not surprisingly, the wealth management industry loves millionaires too. Seven-figure portfolios generate more fees than their six- or five-figure counterparts. So desirable is the millionaire client, in fact, that more and more investment managers and brokerages now require clients to have at least a million dollars to invest.
This trend is relatively recent, emerging over the last 5-10 years. While some firms offering investment solutions and financial advice maintain lower minimums (ours is $10,000), the industry has generally shifted towards higher thresholds.
Historically, investors with less than a million dollars could still access high-net-worth services (proprietary products, tailored advice, superior client care) through brokers or designated divisions at investment counselling firms. But today, more Canadian investors are politely being asked to find a new home if they’ve suddenly become a ‘non-profile’ client, which is industry jargon for those who don’t meet a company’s minimum investment requirements.
Other investors who have fallen below the new threshold are finding they’re not getting the service they’re used to.
There are reasons why a firm may no longer be able to profitably serve a client with less than a million dollars. Administrative, regulatory, and legal costs have risen. Salaries too. Planning services aren’t cheap, nor are upmarket offices. And half a million dollars isn’t what it used to be.
But it’s still a tidy sum. One that took time, hard work, and commitment to achieve. Regardless of the size of your financial assets or the stage of life you’re in, your money deserves a good home.
At Steadyhand, our goal has always been to offer a high-net-worth standard of investing to everyday Canadians. Indeed, we’ve built a cost-effective platform that embraces non-profile clients.
Don’t just take our word for it, though. Here’s what one of our clients has to say about their experience (via a Google Review):
I'm a pretty small investor, but I'm treated as though I have millions invested with Steadyhand. Besides the personal touch, they also know what they're doing — couldn't be happier with how my investments have done since day one. I can't recommend them highly enough. Don't think because you don't have a shed load of dough that they can't help — believe me, they can!
Millionaire or not, our door is open.