• Last Updated:
  • Mar 22nd, 2017 12:15 am
Deal Addict
Aug 4, 2006
1981 posts
262 upvotes
Toronto
RFD probably isn't the best place for this type of advice, but RBC seems to usually win the awards in Canada https://www.rbcwealthmanagement.com/pri ... wards.html

As some have said, you can invest in indexed ETFs, but will need to then manage these yourself, including tax planning, wills/estate management, trusts, tax reporting, etc. At least with one of the private banks you do get service - don't hesitate to ask for references, how long they've been in private banking, and what the full gamut of services offered is, including pricing. I believe most private banks will provide you a free assessment of your situation if you sit down with them and then provide you with projections, how they can serve you etc. You pay fees on all investment products, whether it's the MER, TER, admin fees, account setup, trading fees, etc, but the difference in value from investing yourself and having to manage all accounts vs an all in one provider is up to you.

Sorry for your loss and best of luck with the future of what seems like quite the inheritance. Be careful of people asking to manage your money, especially if online. Do your research, ask for references.
Deal Fanatic
User avatar
Aug 8, 2012
7163 posts
2448 upvotes
BC
Xavier88 wrote:
Mar 20th, 2017 12:10 pm
That's not true in my case.
What part is not true? The part about not investing it and just "parking it somewhere safe" like a savings account seems to apply in this scenario, based on your posts:
Xavier88 wrote:
Mar 15th, 2017 8:05 pm
Not looking to invest. [...] just want to park most of my money in a safe place.
... but maybe you meant something else he wrote wasn't true?
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Member
Jan 23, 2009
369 posts
99 upvotes
Xavier88 wrote:
Mar 18th, 2017 10:24 am
Short of a bank going under, there's no risk that I know of. Other than that, will look into property and a few other physical assets.

Asset protection asset protection asset protection - all advisor are working on commission - stock market is at all time high - we just entered the 9th years of the bull market - interest rate start going up in the USA - 2 big banks raise alarm over Toronto housing 'bubble' - Good luck
Member
User avatar
Dec 16, 2015
440 posts
136 upvotes
Whyy only 8 figures? Work your $20mil and make it into at least $200mil

Why even earn paltry 5 figures salary? Work it out and aim higher.
Newbie
Mar 1, 2016
79 posts
27 upvotes
screwdriver223 wrote:
Mar 18th, 2017 12:16 pm
If you want something completely "safe" you would probably want CDIC insurance, which caps out at $100,000 per institution. If you are saving seven figures, then it becomes impractical to have CDIC insurance for the entire amount, and are thereby taking on additional risk (albeit small).

Inflation is around 2% right now. "High" interest savings accounts may pay 2% now. (Sure, Tangerine may have a 3% promotion, but it caps out at 500K so you wouldn't be able to use it for the majority of the funds). Interest is taxed as regular income. So, you'd make 1% post-tax, which means your real purchasing power drops by 1% each year.

The "risk" of using only "safe" investment vehicles is that your money is slowly eroded over time as your returns do not compensate for inflation. So, these "safe" accounts do carry a real long-term "risk". If you really want to provide for future generations, a diversified portfolio of equities and a smaller component of fixed income is probably far more appropriate.

You have some major decisions ahead, and I would recommend taking the time to learn about investing. If you have the interest, I would recommend a book like The Four Pillars of Investing.
CDIC insurance does not "cap out" at $100,000 per institution. It caps out at $100,000 per institution per insured category...a significant distinction for someone trying to preserve capital who appears extremely risk adverse.
Member
Jun 26, 2007
433 posts
88 upvotes
GTA
My in-laws work with a private wealth management adviser at RBC Dominion Securities. We are satisfied with the services so far. They have nowhere near the amount you are getting but I know he manages many many wealthy families.

I think for the amount that you are inheriting you would benefit from wealth management IMO. I will PM you the info and you can explore further.
Jr. Member
Feb 12, 2007
185 posts
16 upvotes
Toronto
BigDurian wrote:
Mar 21st, 2017 11:20 am
CDIC insurance does not "cap out" at $100,000 per institution. It caps out at $100,000 per institution per insured category...a significant distinction for someone trying to preserve capital who appears extremely risk adverse.
Sorry, you're correct. I oversimplified. But why is this a significant distinction? Even if the OP had never contributed to a TFSA or RRSP, that would only provide a maximum of $200,000 of coverage. If the OP wanted to save (for the sake of argument) $10M in risk-free accounts, wouldn't that still require ~100 different institutions? If he had a spouse and they had joint accounts as well, isn't that still ~33 different banks? It just doesn't seem like a practical way of "parking it somewhere safe". Is there a loophole or something with the other categories (?trusts) that allows large amounts to be kept at one bank?
Sr. Member
Jul 19, 2004
646 posts
45 upvotes
Vancouver
screwdriver223 wrote:
Mar 21st, 2017 7:41 pm
Sorry, you're correct. I oversimplified. But why is this a significant distinction? Even if the OP had never contributed to a TFSA or RRSP, that would only provide a maximum of $200,000 of coverage. If the OP wanted to save (for the sake of argument) $10M in risk-free accounts, wouldn't that still require ~100 different institutions? If he had a spouse and they had joint accounts as well, isn't that still ~33 different banks? It just doesn't seem like a practical way of "parking it somewhere safe". Is there a loophole or something with the other categories (?trusts) that allows large amounts to be kept at one bank?
Banks have several entities that is covered under CDIC. You would put $100k under each entity so that it is covered. Most big banks has 3 or 4 entities that are covered under CDIC. If you have 4 accounts under your own name, 4 accounts joint, and 4 accounts in your spouse's name that would already be $1.2 million. Also, each category of the following is covered separately so potentially you can have even more amounts covered:

Separate protection
CDIC covers eligible deposits in the following categories, each to a
limit of $100,000. These include:
deposits held in one name;
deposits held in more than one name (joint deposits);
deposits held in trust for another person;
deposits held in registered retirement savings plans (RRSPs);
deposits held in registered retirement income funds (RRIFs);
deposits held in tax-free savings accounts (TFSAs) ;
deposits held to pay realty taxes on mortgaged properties.

http://www.cdic.ca/en/about-di/how-it-w ... fault.aspx
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