Why Professional Fees?

It cannot be in any client’s best interest that the primary source of income for the advisor depends on whether the client purchases a product or makes an investment.

Such a system clearly contains a fundamental conflict of interest. The advice you will receive will be biased towards certain products and away from others.

And to compound the problem, the fee is deducted from your investments on a monthly basis and paid directly to the advisor by the product administrator, to make it less ‘painful’.

The system above describes the primary method of remuneration for the vast majority of financial advisors in the industry, even if they call themselves independent.

There is nothing preventing any financial advisor from changing to a professional fee, based on time and/or complexity of your situation.

When this happens, as I can attest, a radical change happens to the advisor. Its like a great burden has been lifted and you are free to give advice unimpeded by the need to get assets under management or to sell something to your client.

The focus changes from investments and products to financial planning in a wide sense. You are motivated by looking for a solution where absolutely nothing is off the table.

You also find yourself on the same side as the client in seeing the deep-seated problems with the industry and understanding the fundamental sense of distrust many people have in the system.

To achieve this level of advisory freedom, it is imperative that fees are paid by the client and not deducted from some product and paid by the product supplier to the advisor. If any commission is paid to an adviser on the sale of a product, then this commission must be returned in full to the client.

Working with you to reach your Goals

Life Planning is a total personal and financial plan with you at the centre of the Plan. But it is way more than that! It is about empowering you, taking into account your skills and talents, fixed and other assets, financial resources, and any other attribute special to your family unit. A LifePlan will look for ways of turning your dreams into reality.

Financial planning that is ...

Unbiased

If you are paying for advice, it will not inevitably end up selling you a new product or investment.

It will be the best advice, based on best practice in your circumstances.

Potentially Life Changing

A well-developed LifePlan can be life changing.

It will challenge you to question certain things you are doing and ask you to consider what it is you really want to achieve.

Comprehensive

Starting with an understanding of your family unit, it develops a plan taking everything into account.

From your family home to your retirement aspirations. And from your children’s education to your estate plan and will.

Personal

A LifePlan is never a cookie-cutter solution.

Understanding that no two families are the same, your LifePlan will help you develop a deeply personal blueprint which will guide all critical family decisions.

Consider this question

Why is it that about 90% of people who retire in South Africa, end up with a Living Annuity?

The fact is, the advisory fee typically paid on a Living Annuity is between 0.5% and 1% per year, whereas the commission on a Life Annuity is usually 0.5% once off….read here