When most people review their finances, they focus on performance: 

How are my investments doing? 
Am I keeping up with the market? 
Is my net worth growing? 

These are important questions. But there’s another factor that can have just as much impact on your long-term results: fees. 

Not just how much you’re paying, but what you’re paying for – and whether or not it’s working in your favor. 

The hidden impact of fees 

Fees are one of the few things in investing that are certain and can be controlled. Markets fluctuate. Returns vary. But fees don’t disappear, and over time, they compound just like your investments. 

Even a small difference can translate into tens or even hundreds of thousands of dollars over your career. 

Over time, most high-earning professionals accumulate a mix of accounts and strategies. With that comes layers of fees, some of which are transparent, others which aren’t. The key is not simply to look at minimizing fees. It’s understanding them. 

Low cost vs. high value 

There’s a common narrative that lower fees are always better. But that’s only part of the story. 

If you’re paying very little but receiving no real guidance, no formal planning, and no coordination across your financial goals, the long-term cost can be far greater than the fee itself. 

On the other hand, paying for thoughtful advice can create meaningful value through better decisions, improved tax efficiency, and a clearer long-term plan. Allowing you to achieve overall financial success.  

Long-term research from CIRANO shows that individuals who work with an advisor over time tend to build significantly more wealth, largely due to disciplined planning and behavioural guidance. The study shows that the average household who has worked with an advisor for 4 to 6 years has asset values 1.8 times higher than an average comparable household who did not have a financial advisor.1 Asset values jump to 2.1 times higher for households who have worked with an advisor for 7 to 14 years, and 2.3 times higher for households who worked with an advisor for 15 years or more.1 

In other words, it’s not just about what you pay; it’s about what you gain.                     

Understand how you’re paying 

One of the most important questions to ask is: How are my fees structured? 

Generally, Fees can be structured in one of the following 3 ways: 

1. Fee-for-service financial planning  
   Under this approach you pay directly for advice, often as a flat annual or one-time fee. Typically, you manage your own assets, but you pay for the planning and advice surrounding your investments and finances as a whole. 
2. A fee-based investment approach, where you pay a flat fee to your advisor, typically an agreed upon percentage of the total assets they’re managing for you. The fee would be to manage your investments, provide financial planning and optimize your finances. This is a more transparent approach to fees, as you know exactly how much and what you’re paying for. 
3. Fees embedded in products 
   These fees are built into investments or insurance products. They’re not always visible, but they’re there to cover management, administration, and advice. 

Each structure has its place. The challenge is when clients don’t fully understand which model they’re in, or why. 

Why independence matters 

When advice is tied too closely to specific products or providers, it can limit what is recommended. 

Independent advice allows for a broader perspective. It creates space to compare options, evaluate costs, and design a strategy based on what’s best for you, not what fits within a single product shelf. 

For professionals with complex financial lives, this flexibility is essential. It allows your plan to evolve alongside your career, corporation, and financial goals. 

The Oberoi approach: Clarity and flexibility 

At Oberoi Financial Group, we believe there isn’t a one-size-fits-all approach to fees, just like there isn’t a one-size-fits-all financial plan. 

That’s why we offer all three: 

• A fee-for-service planning model, where you pay for comprehensive financial advice. 

• A fee-based investment approach, where we work with you to determine a flat fee to manage your investments and provide investment planning. This is a more transparent approach to managing investments – you agree to your fees in advance, so there are no surprises. 

• And product-based solutions, where fees may be embedded within investments or insurance when appropriate.  

More importantly, we help you understand how these pieces work together.  

For some clients, a stand-alone planning fee provides clarity and control. For others, integrated solutions offer efficiency and simplicity. In many cases, a combination of both may be the right approach.  

Our goal is not to push one model over another. It’s to align the structure with your needs, and  above all ensure you understand what you’re paying for, and why.  

Bringing it all together 

Fees are not inherently good or bad. They’re a tool that should be evaluated in the context of value, transparency, and outcomes. 

When you understand your fee structure, you gain something more important than cost savings: control over your financial decisions and long-term strategy, and confidence that your plan is working in your best interest. 

If it’s been a while since you’ve reviewed your fees (or you’re not entirely sure how you’re paying), reach out and let’s review.  

Clarity around fees isn’t just about what you’re spending. It’s about how effectively your wealth is being built. 

Sources 

1. Montmarquette, C., and Prud’Homme, A. More on the value of financial advisors. March 2020. CIRANO. https://cirano.qc.ca/files/publications/2020RP-04.pdf