Our Fee Disclosure
We provide a premier financial planning and investment service – a level of service our clients deserve. The evidence is the results our clients achieve and confirming testimonials. Our clients have greater peace of mind, know they are on track to achieve their goals and greater financial security because of our advice and care.
It’s only expensive if the value is questionable!
When you engage our Financial Planning services, the first step is a detailed review of your financial situation, level of satisfaction and needs regarding financial goals, debt management, tax planning, insurance and estate planning. Our objective is to help you make better decisions with your money by recommending what you need to do to achieve your financial goals, protect you and your family from financial disaster, and ultimately saving you time and money.
Time is worth more than money – you can always make more money!
A flat fee is charged for the initial review and recommendations. The minimum charge for this review is typically $500. If you are retiring within 10 years, are incorporated (or wondering if you should) have a business, disabled child, an income property another complexity, you likely need a more comprehensive plan. These plans typically start at $800 and may cost up to $3,000 depending on the number of areas of complexity.
Once the review and plan is complete we make specific allocation and investment recommendations and act as your “project manager” to implement the recommendations and invest and manage your assets.
Our fee for the implementation, on-going management, plan updates and annual reviews is “asset based” and calculated as a percentage of the assets under management. It typically averages about 1% annually for most portfolios’. An asset based fee structure has three significant benefits to our clients:
- It ties the advisor’s compensation to investment performance and satisfaction with our services.
- As the compensation is not transaction based, there is no immediate financial benefit to the advisor to initiate a transaction other than if it is in our client’s best interest. This supports a longer term view of our clients’ portfolio.
- It does not commit our client’s to continue to use our services or any specific investment keeping our client’s in control and maintaining investment flexibility.
In some cases the only possible compensation is a commission – life, disability, critical illness insurance, and Limited Partnerships are some examples. When a commission is the only option, additional disclosure will be provided.
Investment success is more an emotional battle between what stock markets are doing over the short term and faith in the future. It’s about accepting premium volatility to achieve premium returns. My job is to ensure our client’s do what they need to do for both short term and long term investment success – keeping emotions in check and maintaining a pragmatic perspective.
We cannot promise our client’s will outperform their friends and neighbours in the short term, but I can say following our advice gives them the greatest opportunity for achieving their financial goals and ultimately, a great life.
More Details on fees
The asset based fee clients pay is called the “MER” or Management Expense Ratio. It is made up of the investment company Management Fee and the Advisor Fee.
Investment companies charge a Management Fee of anywhere from 0.6% to 1.75% depending on the type of investment and size of account.
The Advisor Fee may vary from 0.25 to 1.25% again depending on the type of investment and size of account. Advisor fees average about 1% for most portfolio’s and may decrease with the size of portfolio.
So the total MER paid by investors across an average portfolio will vary from about 1.5% to 2.5% – depending on size of account and type of investment. These fees are disclosed for each investment within their prospectus.
Note: All performance information shown to clients must, by law, be after fees have been deducted – unless specifically identified. Although investment fees are important, there are many other factors important in selecting an investment: net long term historical returns, volatility, geography, style are a few key factors.
The advisor fee portion may be bundled or unbundled.
The Advisor fee would be part of the MER charged by the investment company and these investments are often referred to as “A class” investment funds or “FEL” on the client statement.
The total MER paid by investors across an average portfolio will vary from about 1.5% to 2.5% – depending on size of account and type of investment. These fees are disclosed in the investment prospectus.
This would be deducted from the investment fund before investment returns are reported to the investor and not as a separate charge to the account.
The Advisor fee would be charged separately from the Management Fee which allows it to be deducted as an investment council fee in non-registered accounts.
These investments may be called “F” class and when purchased in this structure, the investment company charges an investment management fee of 0.25% to 1.5% depending on the investment. The advisor fee of 1% (paid monthly as 1/12 of the previous months balance) is charged separately and shown on the statement as “an investment counsel fee”.