Most Canadians Don’t Realize This Type of Financial Advisor Exists

When most people think about financial advice, they picture:

• Their bank
• An investment advisor
• Or someone recommending products

What many don’t realize is that there’s another option entirely: fee-only financial planning.

What Is a Fee-Only Financial Planner?

A fee-only financial planner is paid directly by you for advice.

They don’t:

• Sell investment products
• Earn commissions
• Get paid based on what you buy

Their role is to help you:

• Build a financial plan
• Optimize your savings strategy
• Make better long-term decisions

Personally, I’m a big fan of this model. There’s no product bias, so the recommendations tend to be more objective.

I’ve also seen first-hand how fee-only planners can really help clients get clarity around their overall financial picture and make better long-term decisions.

Why This Matters

A lot of Canadians are invested in:

• Mutual funds through their bank
• Segregated funds through an insurance advisor

Often without fully understanding:

• What they’re paying (MER)
• How those investments have performed vs the benchmark

That doesn’t mean all advisors are bad. Some can absolutely add value, especially early on.

But it’s important to understand how your advisor is paid, because that often shapes the advice you receive.

What Happens After the Plan?

One of the biggest advantages of fee-only planning is flexibility.

Once you have a plan, you can decide how to implement it:

• Self-direct using low-cost index funds (e.g. VEQT / XEQT)
• Use a robo-advisor for simplicity and rebalancing
• Work with a fee-based portfolio manager

There’s no obligation to use any specific product or platform.

What Should You Ask?

If you’re considering meeting with a planner, here are a few questions worth asking:

• Am I saving enough? (a rough target could be ~15% of income)
• How has my portfolio performed vs the benchmark?
• How do I optimize taxes in a non-registered portfolio?
• Where should I be allocating new money? (RRSP vs TFSA vs FHSA)
• When does it make sense to buy a home, and how does that impact my plan?
• What assumptions should I be using (returns, inflation, etc.)?
• Are there any gaps in my plan, such as insurance (e.g. disability)?

The goal is to shift the conversation from products → planning.

Final Thoughts on Fee-Only Financial Planners…

There’s no one “right” approach.

But most people don’t even realize fee-only advice exists, and it can be a very effective way to build a solid foundation without being tied to specific products.

I don’t offer fee-only planning myself, but I do refer clients out when it makes sense. If you’re exploring this route and want to be pointed in the right direction, I’m happy to help.

– Jeff

*Disclaimer: This article is intended for general informational and educational purposes only and does not constitute personalized insurance, financial, legal, or tax advice. Insurance needs, policy features, costs, and suitability vary based on individual circumstances and specific contract provisions. Coverage availability and terms are subject to insurer underwriting and approval. Readers should review their own situation carefully and consult with a licensed insurance advisor before making any insurance decisions or changes to existing coverage.