Compensation/Fee Options for Professional Financial Planning Services
Your Dreams are unique …… and we believe you should have a choice!
Everyone's dreams, needs and financial situations are different. The level of financial planning services and related products you may need from Canfin Financial Group will also be unique and will have a direct bearing on the compensation/fee you pay. We can tailor our fee structure to your unique situation. But, here is the good news…
Your initial meeting is complimentary!
Your initial consultation with a Canfin financial advisor is at no cost or obligation to you. Although the initial consultation will not include a written plan or any recommendations, the advisor will answer your questions about initial and ongoing costs and fees and let you know what you can expect to receive. The options are clear, flexible and affordable as explained below. Being informed, you are free to choose!
Financial Planning, Implementation and Monitoring fees:
As a Canfin Financial Group Client, you pay a fee for ongoing financial advice that you receive from your advisor. This fee varies from one client to another based on the time and complexity of your financial situation, mutually agreed to in writing between you and your Canfin Financial Advisor before he/she commences working for you. The various options are:
- Fee-For Service,
- Traditional (Sales, Fees and Commissions),
- Asset-Based Fees and
- Pro Bono.
Fee-for-service: if you require pure advice, planning, counselling or monitoring with a written set of recommendations/action steps, this is best done with one of our advisors who is qualified as a Certified Financial Planner (CFP) or a Registered Retirement Consultant (RRC) on a fee-for-service basis (hourly billing based on an estimated time frame). Any ongoing advice would be charged at an hourly rate. Generally, this method of payment is advice centric and you are able to implement their recommendations elsewhere or with a product/service advisor of your choice.
On the other hand, in addition or exclusive of the above, you might need to implement or buy products or services to address certain needs, goals and objectives, and therefore, the compensation/fees may take a variety of forms:
Traditional: Some products already have a “built-in” compensation which cannot be deducted or negotiated; this is typical of insurance products. Compensation is paid to the representative by the company issuing the product. Advice is associated with the product you are buying.
If your advisor is registered to buy and sell investments, there may be an initial sales fee when you buy or sell an investment. This fee covers the cost of developing your investment strategy, establishing your risk profile and executing your trades. We receive a Trailer Fee to monitor and adjusted your portfolio to ensure that it adheres with your investor profile (KYC), goals and objectives. These fees may be embedded (DSC) in the cost of the investments you buy and sell, or the fees may be explicit (ISC). Either way, legally you will be provided with a Canfin Client Relationship Disclosure document and/or The Fund Fact Sheet at the time of purchase that explains compensation in a clear and transparent manner. What your advisor recommends depends on your needs and their qualifications.
Asset Based (Commission Free) Option: This method allows you to pay a set fee based on your investments with us. It is usually a percentage charge (typically ranging between 2% to 0.25% depending on the size of the portfolio). This fee covers the time we will spend creating your portfolio, executing transactions, monitoring, adjusting, and servicing your portfolio and giving you advice associated with it through regular reviews with you. Depending on the investments you choose, additional fees may be embedded in the product cost which is disclosed at the time of establishing and servicing your account. This option is more suitable for high net worth individuals. The fee rate generally decreases as the amount of money invested increases.
Free/Pro Bono Guidance- Can’t afford a Certified Financial Planner but need assistance? If this is your situation, we will undertake voluntarily and without payment after our initial consultation and evaluation. At Canfin, we believe financial literacy, sound money guidance and financial planning is not an exclusive right reserved for those who can afford to pay. To qualify for this option, we rely on the honesty of the person requesting our service and the generosity of participating Canfin advisors. This service is not funded by the government; all of our participating advisors are volunteers who wish to give back to the community.
Note: The hourly cost, commissions, fees used here are not exhaustive, and are used solely for illustration purposes and may be higher or lower, depending on the complexity, skills, education and product etc.
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