Know Your Investor (KYI) / Know Your Client (KYC) & Your Goals

Pull up a chair, grab your double-double, and let’s chat about KYI and KYC—the financial equivalent of checking your winter tires before a road trip. Whether you’re a rookie investor or a seasoned Canuck with portfolios as vast as our maple forests, these acronyms ensure your money stays cozy and compliant.

What on Earth Are KYI and KYC?

At their core, “Know Your Investor” (KYI) and “Know Your Client” (KYC) are simply fancy ways for financial institutions' advisers to learn who you are, what you want, and how much risk you can stomach without breaking into a sweat. It’s not some secret handshake—just a series of questions about your goals, income ranges, and how you’d handle a 10% market swoon over your morning Timbits.

Not to Be Confused with KYJ

A quick public service announcement: KYI/KYC has absolutely nothing to do with KYJ. There are no slippery secrets here—just straight talk about your finances, with light role-playing ... no jelly required.

Why Should You Care?

Imagine trusting someone to build your dream cottage on a frozen lake, only to find out they’ve never even touched a snow shovel. That’s what it’s like investing without KYI/KYC. These questionnaires protect both you and your advisor by aligning recommendations with your unique profile—no two Canadians are exactly alike, after all.

The Usual Suspects: Question Highlights

Financial institutions typically ask questions in these key areas:

• Personal Snapshot: First name, birth month/year, province or territory.

• Income Brackets: From “still paying off student loans” to “my money makes money.”

• Investment Goals: Capital protection, income generation, growth, or adrenaline-pumping speculation.

• Risk Tolerance: Would you bail at a 10% drop or buy the dip faster than playoff tickets?

• Experience Levels: Stocks, bonds, ETFs, crypto, and everything in between.

So since you're here and are likely in the DIY'ing mindset... let's take a minute to role-play and pretend you're your own advisor - how would you answer these questions (remember, be truthful to yourself):

1. Personal Snapshot

• Preferred First Name

• Birth Month / Year (e.g., July 1985)

• Province or Territory of Residence

2. Financial Landscape

Annual Income (before taxes)

1. Under $50,000

2. $50,000 – $99,999

3. $100,000 – $199,999

4. $200,000+

Estimated Net Worth

1. Under $100,000

2. $100,000 – $499,999

3. $500,000 – $999,999

4. $1,000,000+

Liquidity Needs

1. All funds available within 1 year

2. 20%–50% available within 1 year

3. Less than 20% needed in the short term

4. No urgent need—sleeping soundly

3. Investment Risk Personality

Select any that feel right (no pressure, eh?):

• Capital protection (keep it safe, like winter tires)

• Income generation (steady as maple syrup)

• Balanced growth & income (a perfect Timbits dozen)

• Growth of capital (go big, like Canada’s forests)

• Speculation (high-risk, high-reward—feel the thrill)

4. Time Horizon

1. Short term (up to 2 years)

2. Medium term (2–5 years)

3. Long term (over 5 years)

5. Risk Appetite

If your portfolio took a 10% plunge overnight, would you:

• Pull a Gretzky and skate away coolly?

• Sip your double-double and hold tight?

• Snag bargains faster than hockey playoff tickets?

On a scale of 1 (mild like a prairie breeze) to 10 (wild like a Yukon blizzard), how comfortable are you with ups and downs?

6. Investment Savvy

For each category, pick your level of experience:

• None (Newbeaver)

• Some (Curious Camper)

• Moderate (Regular Ranger)

• Extensive (Seasoned Mountie)

  • Equities (stocks) • Fixed income (bonds) • Mutual funds / ETFs • Options & derivatives • Crypto & digital assets • Alternatives (real estate, private equity)

7. Source of Funds

Where’s the loonies and toonies coming from?

• Employment / Salary

• Freelance / Gig economy

• Inheritance / Gift

• Sale of property or assets

• Other (please specify)

AND the MOST important one of them all (and IMHO should be the very first question)

8. Your Goals

Fast-forward to your future self living your best life — what’s the marquee goals you’re chasing, and how do you see your investments achieve that storybook ending?

• Emergency Fund “Moose Shield” Stash enough loonies and toonies to survive any surprise bill—think of it as your personal moose-proof buffer.

• Down Payment “Ditching the Parent Suite” Save up 5–20% for your first home so you can finally hang your toque on walls you actually own.

• RESP “Junior’s Higher Education Fund” Top up that plan so your kid can major in whatever they want—rocket science or interpretive dance, your call.

• Retirement “Cottage Full-Time or Weekend Warrior” Choose between living lakeside 24/7 or squeezing in as many weekend bonfires as humanly possible.

• Major Purchases & Life Events Wedding rings, hot tubs, sleek new rides—any big-ticket item that screams “I’ve arrived (or at least looked the part).”

• Financial Independence & Early Retirement Build a portfolio so robust it replaces your paycheck—and gives you veto power over traditional retirement age.

• Career Reinvention & Entrepreneurship Trade in the cubicle for your own gig—be your own boss, set your own hours, and master the art of pajama board meetings.

• World Exploration Fund Bankroll bucket-list adventures—from Quebec City’s winter carnival to the beaches of Bali—because passports need stamps, eh?

• Debt Demolition Squad Annihilate student loans and credit card balances like a superhero on a mission.

• Giving Back & Legacy Building Channel your inner philanthropist—fund community projects or drop surprises for strangers in need.

How the Magic Happens

Once you’ve submitted your responses, your advisor crafts an investment road map tailored to your profile. They’ll recommend products that match your time horizon and risk appetite, then periodically circle back to make sure nothing’s changed—kind of like checking your furnace filter each fall.

Let's continue with the role-playing. If you were to create a roadmap to goals, how would you get there?

Time to skate past uncertainty, slapshot your investments into the goal of greatness, and celebrate like you just won the Stanley Cup of returns.

Remember, be true to yourself - Chin up, elbows out ... let's hit the ice to get working on your Canadian wealth building dream. 🍁