Oh, hi again. Many IPOs are popping up – Anthropic, Apotex, SpaceX to name a few – and with it, products that allow retail investors to get a piece of the pie. Today we dig into how that works, and if it’s right for you.

What if you could buy shares in a company before it even starts trading on the stock market?

That opportunity, once largely reserved for institutional investors and wealthy clients, is starting to reach everyday retail investors in Canada. But financial experts say the excitement around getting in early should come with a healthy dose of caution.

Last week, Wealthsimple said that eligible clients will be able to request shares of select Canadian and U.S. initial public offerings at the offering price before those companies begin trading publicly. Questrade, which has offered launch-day access to some IPOs since 2013, said it will soon provide access even earlier in a company’s life cycle through select private-market products.

The announcements mark the latest effort by Canadian investing platforms to attract self-directed investors.

It’s also meeting retail investors’ growing interest in private and prepublic companies. The anticipated IPO of Elon Musk’s aerospace company SpaceX has generated significant attention from investors across North America, while special-purpose vehicles that pool investor money to buy stakes in private companies have become increasingly popular.

Under Wealthsimple’s product, investors can request shares in select IPOs with no minimum order size and no additional fees. If they receive an allocation, they pay only the final offering price of the shares.

But getting access to an IPO doesn’t automatically make it a good investment.

“There can be a perception that an IPO is a magical way to make money,” said Jason Heath, managing director of Objective Financial Partners.

Mr. Heath said investors should think carefully about why they want to participate. Someone who genuinely wants to own a company for the long term may find an IPO appealing, but investors hoping to make a quick profit could be disappointed.

“Buying and holding stocks tends to be a better long-term strategy, more often than not,” he said. “It needs to be an investor who actually wants to own that company.”

He also recommends looking at how an IPO fits within an investor’s broader portfolio. If a new offering is in a sector in which an investor already has significant exposure, such as technology, adding more of the same may increase concentration risk rather than improve diversification.

There are other strings attached as well: Wealthsimple warns that investors may receive only a portion of the shares they request, or none at all, if demand exceeds availability. The firm also prohibits clients who sell or transfer their IPO shares within the first 90 days from participating in future IPO offerings, a restriction that is common among U.S. brokerages.

For Mr. Heath, the key question is whether investors are attracted to the company itself or simply to the excitement surrounding a hot new listing.

“If it’s something you want to hold long term, maybe there’s a place for it,” he said. “But I worry it’s more fireworks than investment success.”

I talked to some folks who got requested shares this week for Canada’s largest drug manufacturer, Apotex Health Corp., through Wealthsimple. Read the story.

People who plan to retire in 2025 or 2026 and expect to continue making mortgage payments on their primary residence. Financial planners say carrying debt into retirement can significantly increase the amount of income you’ll need and may put added pressure on your savings.

Are you still paying a mortgage in retirement? Or are you planning to retire before your mortgage is paid off? I’d love to hear about your experience. E-mail me at mraman@globeandmail.com

Can Fiona, 51, afford to take an early-retirement package from the federal government?

The numbers: Fiona and her husband Sylvester earn a combined $366,000 a year from their full-time jobs, plus another $90,000 from side work. They have a mortgage-free home, a defined-benefit pension worth an estimated $1.54-million and roughly $3.6-million in investments.

The situation: Fiona has the opportunity to retire at 51 with an indexed pension and no penalty. The couple wants to maintain after-tax spending of $155,000 a year, help their three children with education and home purchases, travel extensively and potentially buy a cottage or second property.

Key takeaways, from a financial planner: Fiona can retire now and the plan still works, but staying on the job until 2030 meaningfully improves her outlook. Four more years of work would boost her pension and CPP benefits, allow for additional savings and reduce the need to draw on investments early.