If your nest egg has reached the million-dollar milestone, you are now, in financial industry parlance, considered “high net worth.” That means you can access a few more financial choices, enjoy better service, and perhaps pay less in fees.
Certainly you’ll see the welcome mat more often. Many investment counsel firms and a few brokers set their minimum account sizes at this level.
A million dollars will often get you access to special financial services that have the word “private” in front of them, as in “private” banking or “private” investment counsel.
This can get you special credit cards with higher limits, or get you fee or rate discounts on credit cards, foreign exchange, deposit products and loans. Often, you have access to a “private” banker who can provide more attentiveness and greater skills than you’ll find lining up at your bank branch.
Also, reaching this threshold is one of the ways to attain “accredited investor” status in some provinces (such as Ontario), which gives you access to specialized investments like hedge funds that bypass some of the regulatory requirements and protections of mainstream investments (which means you need to do more of your own due diligence in assessing risk).