Clients Prefer Fees
Clients Really Don’t Trust Commissions –
Everyone is Better Off Without Them.
With fees you’ll earn more, enhance your image, and build client trust.
Clients may not fully understand commissions but they know enough to mistrust them. Commissions can be difficult to explain, even harder to justify, and too often paint you and your clients into an investment corner. Costs associated with a sooner-than-planned exit limit your investment flexibility. Clients will quickly see fees as good news and a better way.
Clients will pay much less with fees.
Compared to traditional commission models, your clients will pay significantly less without the front-end commission charges when you buy investments.
Fees are tax deductible; commissions aren’t.
Worse than steep front-end commission costs – as much as 2-3% and even higher with mutual funds – commissions erode client returns without tax relief.
You earn more and you’ll earn it faster.
The table below shows how other models compare with TFP’s fee-based platform, and the difference is dramatic. Now project it over the next ten years!
| The Client | Mutual Fund (fe) or Stocks/Portfolio | Mutual Fund DSC | TFP Model |
| Client buys Investment | $ 100,000.00 | $ 100,000.00 | $ 100,000.00 |
| Commission | $ 2,000.00 | $ 5,000.00 | $0.00 |
| Net Investment | $ 98,000.00 | $ 100,000.00 | $ 100,000.00 |
| ROI | 10.00% | 10.00% | 10.00% |
| MER | 2.00% | 3.00% | 1.25% |
| After-tax 45% bracket | 0.00% | 0.00% | 0.69% |
| Net ROI to Client | 8.00% | 7.00% | 9.31% |
| Year 1 | $ 105,840.00 | $ 107,000.00 | $ 109,312.50 |
| Year 2 | $ 114,307.20 | $ 114,490.00 | $ 119,492.23 |
| Year 3 | $ 123,451.78 | $ 122,504.30 | $ 130,619.94 |
| Year 4 | $ 133,327.92 | $ 131,079.60 | $ 142,783.92 |
| Year 5 | $ 143,994.15 | $ 140,255.17 | $ 156,080.67 |
| Value in 10th year | $ 211,574.65 | $ 196,715.14 | $ 243,611.77 |
Be a hero as you build client trust.
Clients get lower fees, you get greater investment flexibility to serve them, and you eliminate suspicions that your priority is commissions, instead of the client.
Expert, streamlined transitions.
Count on our organizational capacity dedicated to a flawless, efficient process in days, not weeks or more, without administrative headaches. It’s what we do.