1. Use your business expertise
You have learned to keep your cool and not be swayed by your emotions. Because of this, you use objective information to make the best choices. You persevere, knowing that a drop in income or a hardship must not discourage you. Because of the day-to-day decisions you make and the risks you take, you do not allow yourself to be thrown off by market fluctuations when it comes to your personal finances.
2. Keep your independence and save
By becoming an independent investor, you take control over both your personal and your business investments. You can therefore follow your investments and carry out transactions whenever and wherever you want.
Another significant advantage: By managing your investments yourself, you save on management and transaction fees, which are higher if you work with an advisor.
Are you a professional (lawyer, accountant, health care professional, notary, etc.)? You may also have access to preferential programs, which include the waiving of certain administrative fees, all the while giving you access to advantageous borrowing rates. There are also other programs offered that are adapted to wealthier entrepreneurs.
3. Choose from a wide range of products and accounts
There are many investment solutions offered to independent investors. If you manage your own investments, you can sign up for registered accounts (RRSP, RESP, TFSA) as well as non-registered accounts. There is also a wide range of investment products to diversify your portfolio according to your investment goals: stocks, options, Exchange-Traded Funds (ETF), etc. For example, by opting for a margin account backed by assets, you could benefit from cash flow that could go toward a personal or business project of your choice.
4. Get help along the way
Independent investors are not completely left to their own devices. As a general rule, direct brokerage institutions offer helpful tools for independent investors, such as webinars, educational events, a transactional platform and research and analysis tools.
With Recognia, for example, National Bank Direct
Brokerage (NBDB) offers different tools that support your
decision-making: instant information about the market, business
evaluations, targeted research according to client criteria,
investment suggestions, etc.
5. Take advantage of technological tools
Some direct brokers implement tools to monitor and rebalance a portfolio. Such is the case with NBDB’s solution, InvestCube. You begin by selecting a portfolio type that consists of predetermined investments and is monitored and rebalanced as needed. “This lowers the risk of poor investment allocation. We rebalance the portfolio as needed so that it can continue to serve your investment goals. Management fees still remain low,” explains Robert Girard, Senior Manager, Business Development at National Bank Direct Brokerage.
NBDB gives you access to tools that will help you in managing your
investments. You remain the sole decision-maker, which is important
when you are used to being the one in charge!