Improved Fee Model for Financial Plans

I’ve decided to use a tiered fee structure for holistic financial plans for two reasons:

  1. To avoid planning services being unaffordable for low to moderate income people, who are as entitled to good financial advice as anyone else.
  2. To reflect the fact that the more money that is coming into a household, the more money a good financial plan can help you save.

This simple method takes the household income, multiplies it by an increasing percentage, to determine the total plan cost.

Household Income     % of Income     Fee with GST 

       $20,000                            1%                        $210

               $30,000                             2%                      $630

               $40,000                             3%                     $1,260

               $50,000                             4%                     $2,100

               $60,000                             5%                     $3,150

Above $60,000 cost is 5% of household income plus GST.

I think this is a good balance between being able to provide services to whoever needs them, being able to pay myself and cover my expenses, and balancing the cost of the plan to the benefits to be obtained.

Leave a Reply