CRM 2: How Do Financial Advisors Get Paid?

Mutual fund investing. There’s a fee for that?

A management expense ratio (MER) is the total* fee you will pay to invest in a standard series mutual fund. It’s important to note that you do not pay the MER directly; rather it’s paid by the fund itself, which reduces the value of your investment accordingly.

How your money gets split out in an MER

You invest $10,000 in a standard series of a typical Canadian balanced fund with an MER of 2.5 per cent. Through the fund you pay a total of $250 in fees for the year, which may be broken out as follows.

  • $121 for the professional management of the fund and fund operating expenses
  • $29 for taxes
  • $100 for administration, compliance and oversight provided by the fund dealer, of which, on average in the industry, $80 goes towards investment representatives for the services provided to clients, including financial advice, and operating and overhead expenses incurred by the firms while providing those services

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*Additional sales charges may apply, as agreed upon between the client and the financial security advisor. Illustration assumes a front-end load structure, with a zero per cent sales charge and a blended tax rate of 13 per cent. A fund’s tax rate may vary as it is a blended tax rate calculated based on the mix of investors invested in that particular fund across all provinces. Additional fees and charges may apply depending on the series and options chosen.

Realizing the value of the right advice

It shouldn’t be surprising that 81 per cent of fund investors have confidence in mutual funds as an investment solution.*

I can offer you choice, flexibility and the comfort of knowing you’re invested in a product that is aligned with your individual goals and aspirations.

Offering the right mix of strategically selected assets is at the centre of every strong portfolio.

Because your investment is managed by experts who follow this principle and manage costs and risks through me, you have access to strong products and solutions that you would otherwise not have access to on your own.

Contact me to review your investment needs or start your planning process.

*IFIC/Pollara, Canadian investors’ perceptions of mutual funds and the mutual fund industry 2013

The Value of Advice

The value of advice

How do you measure the value of advice? It’s one of life’s intangibles, but most of us seek it out before making important decisions.

The best advice is meaningful and impactful, and as unique as the person receiving it. And while some people think they can manage on their own and are satisfied with the results, they may not even be aware of the opportunities they’re missing.

This is particularly true when it comes to financial security planning, where good advice can be worth its weight in gold.

Financial Planning

That’s because receiving financial security advice is not just about having access to a wide variety of financial products. It’s about developing a relationship with a financial expert who will take the time to understand your financial situation, work with you to develop a plan to achieve your goals, and help you stay on track despite life’s twists and turns.

Many independent studies confirm that financial security advice gives you – the investor – a greater chance of:

  • Increasing your savings by maintaining a disciplined approach
  • Being better prepared for a comfortable retirement
  • Selecting the most tax-efficient investment strategies for all stages of your life
  • Successfully navigating unexpected financial or personal challenges

And despite what many people think, you do not need to be wealthy or established in your career to benefit. In fact, it’s never too soon, or too late, to work with an advisor. Some might even say you can’t afford not to.

To learn more about how you can take advantage of the value of financial security advice, give me a call. 519-860-4223.