It’s investment statement season for many Canadians.
And if you’re wondering if you’re getting value for your money, you might want to ask yourself what services you’re getting for the fees you’re paying.
“Fees are a very important aspect to pay attention to because over time they can add up to a lot of money,” says Tom Pownall, wealth advisor and director of wealth management at Sigma Advisory of ScotiaMcLeod in Vancouver.
If you’re paying an average fee of 2 per cent per year on a portfolio worth $500,000 ($10,000 a year), that adds up to $200,000 over 20 years in fees, Pownall says. You should also be asking yourself what services you are getting for these fees.
Pownall, a discretionary portfolio manager, works with high-net-worth clients with portfolios exceeding $500,000. These clients require more than just investment advice on building wealth for retirement, he says.
Yet a number of advisors provide only that. Yes, some develop financial plans to help clients reach retirement goals. But they typically do not provide a holistic approach to wealth management that includes many other services high-net-worth individuals and their families need.