One of the best things about Fee-Only financial planning is that it works well for both high net worth clients and for investors those just getting started.

One of the biggest misconceptions consumers have is that the financial planning advice they receive is complimentary. In reality, the payment for advice typically comes in the form of commissions or fees paid to the advisor in exchange for the sale or placement of an investment or insurance product. This results in two major flaws at the core of the financial planning industry:
Clients with bigger account balances end up paying higher dollar amounts in fees versus smaller account balances.
A client with a $100,000 account would pay the advisor $1,000 in fees.
A client with a $1 million account would pay the advisor $10,000 in fees.
As a result, many advisors choose to focus only on higher net worth clients, leaving many Canadians that are struggling with their finances, or younger Canadians just starting their careers, unable to access professional financial planning and advice. In many cases, the higher paying client is receiving the same advice, products, and service. The only difference is the size of the cheque paid to the advisor.
Add to this the current business model prevalent at many financial institutions, where the bottom line and maximizing profits are their ONLY focus. Usually, customer service and personal touch are sacrificed in the process. Most financial institutions have a minimum dollar of annual sales the advisor MUST reach to keep their job.
These two factors point to a glaring problem for Canadians seeking financial advice.
Those that need proper financial advice can’t get it.
Those that do get advice get products that are paying higher fees to the financial institution and the advisor.