There are clear benefits to a fee-based practice, but transitioning requires planning to maximize results and overcome challenges. If you’re thinking of transitioning your practice to a fee-based model, it’s important how you communicate this decision to your clients!

Begin by highlighting the ways your new compensation structure will benefit your clients

It enables you to offer clients a broader range of services, such as retirement and estate planning, with appropriate compensation for your time and effort

Your personal relationships with your clients are the root of your practice. Under the GP Wealth Signature Service Account, you and your client may focus on what matters most – building an investment portfolio designed to help them meet their goals.

The GP Wealth Signature Service Account is an exclusive fee-for-service platform that incorporates a process to effectively manage your client’s needs, compete for high end clients and make management fees transparent. With a wide variety of industry-leading financial products to choose from it opens up new possibilities for both advisors and clients. Leverage your full range of expertise and ensure you are compensated for the value you deliver.

Professionalism

Your expertise and un-biased advice are seen to have the clients’ long-term financial goals in mind. Having complete transparency for your services allows clients to view your advice as truly objective and impartial

Client-Focused Relationships

When adopting a fee-based model, any perceived conflict of interest could diminish because recommendations aren’t tied to commissions. It takes away the pressure to sell and opens up the door to more opportunities for long-term relationships.

More Assets

Implementing a fee-based model can benefit your clients’ bottom line. As client’s assets under administration grow, it provides the flexibility to reduce their fees, which could encourage them to consolidate their assets with you.

Transparency

When clients pay a percentage of AUA, it enables them to quantify the benefit of value-added services offered such as portfolio reviews, estate planning, debt management, pension issues, etc. It provides a transparent, simplified and uncomplicated method of compensation and simplifies reporting.

Tax Deductibility

Since advisory fees are separately charged, your clients could claim the fees in a non-registered account as a tax deduction resulting in potential savings. Combined with lower fee-based product lines, the net costs for your clients may be lower.

Stable Income Stream

Fee-based practices tend to have more stable income flows because your fee is tied to service provided instead of the amount of transactions performed. As well, the income flow you create will tend to make your practice easier to sell when the time comes for you to retire.