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Q: I've been running my own company for a few years now, and wanted to know your recommendations on ways to diversify my assets. For example, should I be taking out some of my earnings and putting them towards investments?

A: With diversification, I assume you have already held back all money you may need for payroll, inventory, capital reinvestment and other business costs - that the remaining money is all surplus and for long term personal use. In that case, there is no rule on what you may choose to diversify your wealth into: real estate, Bonds and GICs, stock market, hedge funds, cash and more. The nature and amounts of assets you accumulate should be a function of an overall financial plan put together by you and your advisors. Structural considerations to make along the way include how many corporations to use, family trusts, who is involved with the various assets, tax and legal planning and costs. Many business owners view their business as a high risk venture and therefore put parts of their personal wealth in bonds and GICs to offset the risk.

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