We charge a percentage-based fee of 1% of your ...
We charge a percentage-based fee of 1% of your retirement savings balance per year on an on-going basis.  For the first 12 months ONLY this is increased to 2%.

Financial planning is a very intangible business, which can make it hard for members of the public to put a price on the value-add that comes from advisers.
Especially when trying to compare the work being done by unscrupulous “financial advisers” to excellent ones.
A good way to reflect our impact on your retirement savings is through our fee structure.

There are multiple ways a financial adviser may charge clients, but the two main ones you will see are:
  • Percentage-based fees – This is where the financial adviser charges a specific percentage amount from your retirement savings as their fee. Therefore, this fee is directly linked with your retirement savings.
  • Flat-dollar fee – This is where a financial adviser will charge the same dollar amount annually, regardless of your retirement savings balance.

I have met great advisers who charge either way. However, it is my belief is that a percentage-based fee is a better fit for the type of work we do.

If I were to use the flat-dollar fee structure, I wouldn’t be as clearly incentivised to provide as much value as possible and to take every step necessary to grow your retirement savings.  You would still be charged the same amount year-in-year-out, even if your retirement balance moves backwards.

That’s why I prefer the percentage-based fee because it aligns my goals with yours. 

Most people are coming to see us because they are worried that they won’t have enough to retire.  My job is to get you from where you are now, to where you need to be to make sure you don’t run out of money. 

The better job I do at building your retirement savings, the more I will get paid.

And if your superannuation balance were to drop, my take-home pay follows. So any emotion felt by you in this situation, I’ll feel tenfold because my income is directly linked to this.

We are on the same side and I would not have a viable business model if this were not true.

Written by Ali Hogue.
Published by Ali Hogue January 1, 2020