In building portfolios, I primarily use (F Class) Offering Memorandum (OM) products and Exchange Traded Funds (ETFs). The fee is in proportion to the size of total household investable assets and is reviewed and renewed annually. It is set at $3,500 on all assets up to the first $250,000; 0.8% on all additional household assets up to $1,500,000; 0.5% on all additional assets over $1,500,000. Equity Trades are completed at a flat $15 charge and for bulk trades, there is a $10 allocation fee.
Investment counseling fees are deductible in taxable (i.e., non-registered) accounts under section 20(1) (bb) of the Income Tax Act. This can generate a substantial after-tax saving. Clients receive a customized asset mix of selected products that are cost effect and consistent with the clients’ risk profile(s). The “all in” costs are the sum of the costs charged by the investments and the fee charged by STANDUP. Advisory fees are tapered and vary depending on the size of the account, so understanding this sensitivity is important.