Driving Down Financial Planning Costs

There are several certainties when it comes to investing; risk and reward are related, diversification reduces risk, asset allocation determines portfolio performance and an investor needs to maintain discipline no matter market conditions.

The final certainty is fees matter! They matter a lot because they’re a drag on investment returns. Along with our financial services licensee, FYG Planners, we’re mindful of fees you pay. We have a commitment with FYG Planners to look for ways to drive down fees whenever possible.

With this in mind, FYG Planners has successfully negotiated market leading fee reductions with one of our platform providers (where money is held) for clients on their platform.

We believe FYG achieved a particularly good outcome that came in two components:

A reduction in administration fees for super and pension clients.

And

Lowering the pricing cap of for all non-super accounts and for all super/pension accounts. Along with grouped pricing for up to 6 related family accounts.

Previously, fee capping didn’t occur for clients until a much higher level and there were no family grouping benefits.

You may notice we haven’t included specifics on the platform provider or the exact fees due to confidentiality reasons, but we’ll be more than happy to discuss these with you in person.

We’re proud to say for FYG this is the 5th admin fee reduction they’ve achieved for their advisers’ clients in the last 15 years. Importantly, given the potential growth of FYG Planners and its buying partners in the Asset Class Investing Group we expect they will be pushing to negotiate further discounts in the future.

In 2010 FYG’s “buying group” (FYG and 4 other firms) had $1.2 billion under management with this platform (FYG was about $600m). Today it is over $3.0 billion (which FYG represents over $1.45b).

Finally, you may notice the doubling in funds under management between 2010 and 2015. We believe this growth underlines, that as a client, you’re ahead of the curve in partnering with a non-institutional financial planning business.

Investors across Australia are beginning to realise what you’ve known for a while – it’s better to have a financial adviser who works for you rather than one who works for a bank or institution.

This represents general information only. Before making any financial or investment decisions, we recommend you consult a financial planner to take into account your personal investment objectives, financial situation and individual needs.

Share this article

Facebook
Twitter
LinkedIn

Recent Posts

All

Sept Quarterly Review – Q3 2024

October 14, 2024

Economic Overview Q3 2024 saw decent gains across all asset classes, with...

Read More

Passive Income Investments that Should Not be Ignored

October 3, 2024

Passive income investments have become increasingly popular as a means to generate...

Read More

Are You Saving Enough for Retirement?

October 1, 2024

These days, expenses seem to be constantly on the rise, which is...

Read More

How to Retire Comfortably Early

September 10, 2024

Retiring early and comfortably is a goal for many people. Achieving financial...

Read More

Smart Investment Strategies for Women from Savvy Brokers

September 2, 2024

Investing can be an excellent way for women to pave the way...

Read More

QUESTIONS? CHAT WITH US

Book A Meeting

We are here to help. Schedule a free appointment with us & we will help you with your financial needs.

Contact Us

Not sure where to start? Fill our contact form and we’ll get back to you. Or chat with us directly.