The traditional advisor tends to be the most expensive. The fees are based on the dollar amount of products you buy. As an example, if you invest $100,000 worth of mutual funds and are paying 2% fees, you are paying $2000 per year as long as you own these funds. The 2% figure is an average MER (Management Expense Ratio) based on a mixture of equities and fixed income (stocks and bonds). There may be other fees like sales loads, account fees, trading fees, trailer or referral fees, administrative fees or penalties for switching or redeeming early. To know the real cost, you would have to add up the Digital signature certificate for your situation.
The fee-based financial advisor may have reduced fees since they are charging a flat percentage instead of an MER plus other costs. Reduced fees are somewhere in the range of 1% to 1.5% for an … Read the rest