This type of account charges an annual fee based upon a percentage of the total household assets under advisement. This fee is assessed quarterly, based on the average total household account balance and usually allows a specific number of free fixed income and equity trades while offering unlimited mutual fund trades.
We are not compensated per trade so commissions and trading costs are not an issue in the decision process to buy or sell a security. In a fee-based environment, investors are reassured that decisions are driven solely by investment objectives. If your account increases in value so does our compensation. Conversely, if your account declines in value, so do the fees paid to us. With this structure, we have a direct incentive to work on having your account increase in value. This type of account should remove any perceived conflict of interest as we remain equally committed to common objectives.
Who should consider a fee-based account?
- Investors seeking ongoing objective advice
- Investors with investment assets of $150,000 or greater
- Investors wanting to eliminate annual administration fees and trading commissions
- Investors wanting mutual funds purchased without front end or back end load fees
- Investors interested in the benefits of F-class mutual funds
- Investors wanting access to research publications
- Investors who are capable of fully deducting investment council fees for non-registered accounts - the fees charged may be claimed as a deduction on schedule 4 of your income tax return in the year paid
- Investors wanting to take advantage of ongoing total financial solutions (assessment of the investors borrowing & banking needs, tax planning, protection strategies, financial planning, retirement planning, estate planning, etc.)
