a financial advisor discusses investment options with his client.
The prospect of investing a large sum of money can be both exhilarating and daunting. With the right approach, there’s a potential for significant wealth growth, but there’s also inherent risk involved. The importance of sound asset diversification and risk management can’t be overstated. They can help you navigate through the challenges of investing. This is why you may want to consult with a financial advisor to help you find the right types of investments that will help you reach your unique long-term goals.
Strategies for Investing a Large Lump Sum of Money
Dollar-Cost Averaging: Dollar-cost averaging, a form of regular systematic investment, is one common approach to consider. It involves investing a fixed amount of money at regular intervals, regardless of the price. For instance, investing $1,000 every month in a mutual fund benefits you by letting you purchase more units when the price is low and fewer when it is high.
Lump-Sum Approach: A riskier, yet potentially rewarding strategy is the lump-sum approach. It is about investing the entire amount at once. This approach often benefits from the guidance of a financial advisor due to the high risk associated with market fluctuations.
Asset Allocation Planning: Asset allocation planning is a strategy for diversifying your investments across different asset classes. It’s designed to protect against market volatility and spread risk, but the structure of a diversified portfolio should align with an individual’s risk tolerance and goals. In this context, a financial advisor can provide invaluable guidance.
Market-Timing: Market-timing is another strategy that involves predicting market movements and acting accordingly. However, due to its complexity, an inability to know the future and high level of risk involved, involving a financial expert or advisor could prove essential when adopting this approach. Market timing often fails to deliver what a passive index fund delivers.
Working With a Financial Advisor: To understand different investment strategies and their implications fully, working with a financial advisor can be profoundly beneficial. They can provide personalized guidance to meet your financial goals and risk tolerance, helping you create a robust investment plan.
What You Can Invest a Lump Sum In
Man watching his large sum investment grow
When it comes to investing your lump sum, there is no shortage of options, and the importance of investing in a diverse range of assets shouldn’t be overlooked. Ultimately, your choice depends on your financial objectives, risk tolerance and investment time frame.
Bonds: Bonds are essentially loans to a company or government. In exchange for your investment, you receive regular interest payments. Note that the return of the principal at maturity is not always guaranteed.
Mutual funds: Mutual funds can provide balance in your portfolio as they are often a strong long-term investment. Broad mutual funds can provide value by investing in multiple investments at the same time as well as in multiple industries. Many mutual funds have a focus area, like ESG investing, so it could benefit you to invest in multiple funds.
ETFs: Exchange-traded funds (ETFs) are similar to mutual funds as you can invest in multiple stocks at once. Many ETFs track an index but can provide a good amount of balance that you seek.
Real Estate: You can invest large amounts of money directly into real estate investments that can grow in value over time. You also might be able to invest in properties that can return income throughout your investment hold period in the form of rent from tenants.
You can essentially invest your money into anything you would like. However, the above options provide a balance and relatively safe investment environment for you to build your wealth with the money you’re investing over time.
What to Watch Out for When Investing a Large Sum of Money
Investing large sums carries inherent challenges and risks. While diversification and strategic asset allocation can help mitigate these, they can’t entirely eliminate the risks created by market volatility, inflation and interest rate changes. It’s important to have someone in your corner that understands these types of investments and has a history of investing large sums of money, especially if you’re not.
Bottom Line
Man showing his friend how his large sum investment is doing
The secret to successfully investing large sums lies in a clear understanding of your financial goals, a well-planned investment strategy and a keen awareness of potential risks. We can’t emphasize enough the importance of either conducting your own extensive research or consulting a financial advisor for a personalized investment plan. While compounding interest is great, it’s not a guarantee. Remember to work with a professional and make sure you’re prepared for changes in the market.
Tips for Investing
Whenever you want to see great returns over a long period of time, regardless of how much money you’re investing, you may want to work with a financial advisor. They can provide unique insight and help that you just won’t have on your own. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
One of the best tools to help you in your investing efforts is SmartAsset’s investment return calculator. You can estimate what your investments might look like over time.
TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.
The S&P/TSX composite index was up 254.62 points at 23,847.22.
In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.
The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.
The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.
The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.
This report by The Canadian Press was first published Sept. 19, 2024.
Losing a loved one is never easy, and the legal steps that follow can add even more stress to an already difficult time.
For years, families in Vancouver (and Canada in general) have struggled with a complex probate process—filled with paperwork and legal challenges.
Thankfully, recent changes to Canada’s probate laws aim to make this process simpler and easier to navigate.
Let’s unearth how these updates can simplify the process for you and your family.
What is probate?
Probate might sound complicated, but it’s simply the legal process of settling someone’s estate after death.
Here’s how it works.
Validating the will. The court checks if the will is legal and valid.
Appointing an executor. If named in the will, the executor manages the estate. If not, the court appoints someone.
Settling debts and taxes. The executor (and you) pays debts and taxes before anything can be given.
Distributing the estate. Once everything is settled, the executor distributes the remaining assets according to the will or legal rules.
Probate ensures everything is done by the book, giving you peace of mind during a difficult time.
Recent Changes in Canadian Probate Laws
Several updates to probate law in the country are making the process smoother for you and your family.
Here’s a closer look at the fundamental changes that are making a real difference.
1) Virtual witnessing of wills
Now permanent in many provinces, including British Columbia, wills can be signed and witnessed remotely through video calls.
Such a change makes estate planning more accessible, especially for those in remote areas or with limited mobility.
2) Simplified process for small estates
Smaller estates, like those under 25,000 CAD in BC, now have a faster, simplified probate process.
Fewer forms and legal steps mean less hassle for families handling modest estates.
3) Substantial compliance for wills
Courts can now approve wills with minor errors if they reflect the person’s true intentions.
This update prevents unnecessary legal challenges and ensures the deceased’s wishes are respected.
These changes help make probate less stressful and more efficient for you and other families across Canada.
The Probate Process and You: The Role of a Probate Lawyer
(Image: Freepik.com)
Working with a probate lawyer in Vancouver can significantly simplify the probate process, especially given the city’s complex legal landscape.
Here’s how they can help.
Navigating the legal process
Probate lawyers ensure all legal steps are followed, preventing costly mistakes and ensuring the estate is managed properly.
Handling paperwork and deadlines
They manage all the paperwork and court deadlines, taking the burden off of you during this difficult time.
Resolving disputes
If conflicts arise, probate lawyers resolve them, avoiding legal battles.
Providing you peace of mind
With a probate lawyer’s expertise, you can trust that the estate is being handled efficiently and according to the law.
With a skilled probate lawyer, you can ensure the entire process is smooth and stress-free.
Why These Changes Matter
The updates to probate law make a big difference for Canadian families. Here’s why.
Less stress for you. Simplified processes mean you can focus on grieving, not paperwork.
Faster estate settlements. Estates are settled more quickly, so beneficiaries don’t face long delays.
Fewer disputes. Courts can now honor will with minor errors, reducing family conflicts.
Accessible for everyone. Virtual witnessing and easier rules for small estates make probate more accessible for everyone, no matter where you live.
With these changes, probate becomes smoother and more manageable for you and your family.
How to Prepare for the Probate Process
Even with the recent changes, being prepared makes probate smoother. Here are a few steps to help you prepare.
Create a will. Ensure a valid will is in place to avoid complications.
Choose an executor. Pick someone responsible for managing the estate and discuss their role with them.
Organize documents. Keep key financial and legal documents in one place for easy access.
Talk to your family. Have open conversations with your family to prevent future misunderstandings.
Get legal advice. Consult with a probate lawyer to ensure everything is legally sound and up-to-date.
These simple steps make the probate process easier for everyone involved.
Wrapping Up: Making Probate Easier in Vancouver
Recent updates in probate law are simplifying the process for families, from virtual witnessing to easier estate rules. These reforms are designed to ease the burden, helping you focus on what matters—grieving and respecting your dead loved ones’ final wishes.
Despite these changes, it’s best to consult a probate lawyer to ensure you can manage everything properly. Remember, they’re here to help you during this difficult time.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
