Advice Based Investing

Disclosure of fees is the best thing that could happen to this industry. Now we are on the same side of the table with our clients. This is the way of the future for investing client assets.



Objective: provide high quality investment management with lower fees.

Most clients are unaware of the internal fees that are charged on their investments. In the very near future the industry will be required to publish your fees and commissions on your statement as well as the annual returns on your account. I welcome and applaud this legislation because the client will be able to judge if their advisor is providing value for the fees that they are paying.

Lower fees? Where are the savings to the client?

I use lower cost investment products like Exchange Traded Funds and F-Series funds. These result in lower annual costs than a typical mutual fund portfolio. What's even better is: I tell you what they cost before we buy them! For example the average cost of an ETF in Canada is .46 basis points (that's a little under one half of one percent) The ETF market has now matured in Canada and there is a wide range of investment vehicles for client portfolios.

How does the myWealth fee structure work?

This program is unique because a preferred rate can be shared by family members even if they reside at different addresses! For example on a $500,000 portfolio that is $300,000 in taxable accounts, $155,000 in an RRSP and $45,000 in a Tax Free Savings Account. The total fee is 1.41% on an annual basis. This fee is tax deductible on the $300,000 but not on the registered plans. The larger the amount the lower the fee. 

Call me at 705-740-8424 for a more specific example as it would pertain to your portfolio. I can easily provide more information and calculate what you are paying now and how your portfolio has performed.

David Hersey, CFP

david.hersey@nbc.ca