I do not impose any minimum investment amount. However, I do expect the clients to invest the appropriate amount in view of their investment goals. For instance, if the retirement goal is to accumulate $2 million by age 60 and the client is currently 40 years old. A lump sum investment of $10,000 (with no future contribution) is too small of an investment. I will reject such a case.
On the other hand, a lump sum $10,000 with a monthly investment of $4,240 is considered an appropriate investment plan because in 20 years’ time the portfolio would have grown to $2 million assuming 6% per annum.
Like this article? Subscribe to my newsletter below for more.