Investors pay for both the cost of advice and the cost of products. In spite of embedded compensation mutual funds being available for many years, there are still a large number of people who do not understand how much they are paying (and how much their advisor is being paid). The simple way to understand this is that investors pay the average, blended MER (Management Expense Ratio) for the funds they own. The MER is simply the annual cost (charged invisibly to you, the unitholder) for owning the fund(s). An MER of 2.40 means that you are paying 2.4% ($2,400 a year on a $100,0000 portfolio) in fees.
In contrast, STANDUP Advisors generally use lower-cost products and charge a separate, transparent and potentially tax-deductible fee. The difference in total annual cost is sometimes modest, but it can be large, too. A difference of (for instance) 0.5% may not sound like much, but it could cost you hundreds of thousands of dollars over your lifetime. As a result, it is critical that you take all reasonable steps to manage your costs.
Below you can input the parameters for your investment portfolio. Your investment projection compares the traditional financial advisor service cost to the Standup Advisor fee-based advice model.