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Dale Jackson

Your Personal Investor

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Millennials and investors with modest portfolios are caught in a perpetual catch 22: you can’t grow your portfolio without good financial advice, but you can’t get good financial advice unless you have a big portfolio.

One Canadian financial planner hopes to break the old fee model by providing advice as needed, much like a doctor or lawyer. Money Coaches Canada has certified financial planners across the country that review individual client portfolios with respect to fees, risk, asset mix, retirement strategy, tax efficiency and how investments relate to the broader benchmarks.

Money Coaches also provides estate planning and insurance advice but does not make specific investment recommendations. Typically, a new client already has a mish-mash of investments after years of rushing to meet the annual registered retirement savings plan (RRSP) contribution deadline. Fees are generally $800 to $1,000 per month to create the plan and $250 to $300 per month for ongoing advice. Clients who don’t require that much attention can return for annual checkups for a fee of $200 to $250 an hour.

The fee for one-time financial reviews for do-it-yourself investors, and those who work through robo-advisors, is $600 to $1,250.   

While flat fees might seem like a lot, they could pale in comparison to annual fees on mutual funds, which typically average 2.5 per cent in Canada. That’s $2,500 each year on a $100,000 portfolio of mutual funds.

Money Coaches isn’t for everyone, but it’s another fee model for a country desperate for a break from high investment fees.

 

February is Your Money Month at BNN Bloomberg. For more stories and practical advice on how to employ your money wisely, visit our Personal Finance page.