Fee-Based Investment Planning

What is fee-based investment advice?

Most likely, it’s exactly what you’re doing now, just without hidden commissions. Instead, the advisor’s compensation is paid separately from any product management costs. It is usually deducted from the account and is therefore very visible to you. There is no ‘load’ applied to the purchase or sale of the investment, just an ongoing annual fee which is disclosed and agreed to by both parties. I like to disclose both the advisor and product fee so clients have a complete understanding of how much is being paid to whom and for what.

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Why is fee-based investment advice a good idea?

It creates a relationship without any potential conflict of interest. Your costs are transparent – you know how much you are paying and what services you will receive in return. If a flat percentage fee is charged on all the investments, the asset bias is removed and the only way the advisor makes more money is to grow your portfolio.

Fees are transparent and reported on an ongoing basis.

Improved tax-efficiency. Fees for non-registered assets may be tax deductible against income, which can result in significant savings for high-income clients. Please contact your tax professional to validate the potential tax deductibility of your investment fees.

Access to lower cost products such as F-class mutual funds.

What fee-based investment planning services do you offer?

Clients tend to ask us for Investment Advice in one of 3 ways:

1. Portfolio Review

For clients who are happy with their current Investment Advisor but want a second opinion, or Do-It-Yourself investors.

We examine your portfolios on multiple levels:

  • We examine your overall asset allocation as well as the portfolio level allocation.
  • We determine if your current asset allocation is appropriate for your risk tolerance and to achieve the goals you set out in your financial plan.
  • We look at the risk of your holdings (where possible).
  • We also examine the tax position of your portfolios as well as the tax allocation of your investments amongst your plans.
  • We calculate the management costs of your current portfolio.
  • Where we uncover any deficiencies or inefficiencies, we make recommendations for improvement.

We do not make specific investment recommendations as part of this service.

In order for us to be able to do this work, there must be a current, accurate plan in place that is based on reasonable assumptions. If one is not in place, we can only go ahead if you agree to the completion of a plan for you as well.

Our fees for this service have ranged from $1250 - $1750.


2. Investment Management:

For clients who are looking for an Investment Advisor who will manage and administer their investment portfolio(s).

We examine your portfolios on multiple levels:

  • We examine your overall asset allocation as well as the portfolio level allocation.
  • We determine if your current asset allocation is appropriate for your risk tolerance and to achieve the goals you set out in your financial plan.
  • We look at the risk level of your holdings (where possible).
  • We examine the tax position of your portfolios as well as the tax allocation of your investments amongst your plans.
  • We calculate the management costs of your current portfolio.
  • Where we uncover any deficiencies or inefficiencies, we make recommendations for improvement.
  • We will make specific investment recommendations as part of this service.

In order for us to be able to do this work, there must be a current, accurate plan in place that is based on reasonable assumptions. If one is not in place, we can only go ahead if you agree to the completion of a plan for you as well.

Our fees for this service are on a fee basis as follows:

Assets Under Management Assets Management Fee Planning Discount*
$150,001 - $250,000 1.00% 0%
$250,001 - $350,000 0.85% -10%
$350,001 - $500,000 0.85% -25%
$500,001 - $750,000 0.75% -50%
$750,001 - $1,000,000 0.65% -100%
>$1,000,001 0.50% -100%

*Applies after the 1st anniversary transferring in your portfolio

Assets Under Management are based on the household total, not individual account and are charged at that level. For example, if you have 3 accounts that total $425,000 you would pay a flat 0.85% on each account and qualify for a 25% discount on any planning services from your first anniversary on.

As an investment management client, we commit to an annual review at the very least. This focuses on how you are progressing towards achieving your goals. If a material change has occurred and an update to your plan is needed, you are likely entitled to discounts on these costs based on the size of your portfolio as outlined above.

3. Investment Recommendations on an hourly fee

We periodically receive calls from DIY investors who want advice on their specific holdings, asset allocation, geographic allocation etc. and want to pay for that service on an hourly basis. We do not provide this service, nor do we know anyone who does. The development of a successful Investment Philosophy takes years to refine and the ongoing attention and research it requires cannot be adequately accounted for in an hourly fee – or at least not one that a DIY investor would be willing to pay! Moreover, I think it’s inherently unfair to our clients who pay us on an ongoing fee basis for this type of work.




Click to View: Your Personal Portfolio Strategy Process