In 2008 an Iphone app named “I Am Rich” appeared on the App Store for $999 USD, that when launched simply produced the statement: “I am rich. I deserv [sic] it. I am good, healthy & successful.” The app was downloaded eight times, netting the developer $5600 and Apple $2400. Apple removed the app the day of its release.
Save Money by Spending Money?
Net Worth Management is a new philosophy on managing your wealth, different from the “Financial Advisor” role that has been ever present in our lives. You know the drill – meet with your advisor, learn about what you need to live a secure life, and buy the products that will get you there. And don’t we know it, most of our team has worked for and with these companies for many years, and at first glance it all makes sense.
But the challenge is that the more you buy, the more money the advisor makes, so naturally they are going to push you to buy more products. It’s not their fault, nor the fault of their firm – they are businesses, and they have chosen to make money through fees.
So how can we make this better, and still be profitable?
It’s About Your Life
To nail down how this works, we took a hard look at the word “Financial Advisor”. The definition really comes down to – “A person who advises you on your finances” (yes we used the words in the definition). Do you see any fit here for a salesperson? Or would you expect someone more like a coach, a counsellor, a mentor?
Once that distinction was made, we just needed to start charging like those professions. So instead of paying a percentage of products purchased, our customers started paying us a regular flat fee, which allows an all access pass into the expertise of our entire team. All of a sudden there is more time to get to know you, your dreams, your goals, your life. How many kids do you want, do you want them to go to college, how often do you want to take a trip, do you want to buy a rental property? Or let’s break it down to how you can afford your kids hockey fees, the new car payments, or a night out with your spouse each month.
Financial planning is about your goals, and learning how you can achieve them within your means.
Fees in Canada
It’s worth noting that you – a Canadian, are fortunate (eyeroll) to live in a country with some of the highest mutual fund fees in the world. You can expect to pay close to 2.4%, all the way up to 2.7%!
Let’s Get You There
You need a Financial Plan, and someone to guide you through it.
It needs to be adaptable, and based on what you want to achieve.
Does your life change? So will your plan. And that’s a good thing.
Do you want help planning for 1 year, 5 years, 10 years. Great, because that’s where Net Worth Management comes in. For a flat fee, you’ll get an expert in financial planning, who will be on your team every step of the way, keeping you accountable, and on track.
And the best part? We aren’t going to sell you anything you don’t need. It’s just solid financial planning.
You’ll get peace of mind, security, and all those other touchy feely financial terms. But you’ll also get that trip you wanted to take, or that home you always dreamed of. You’ll find extra cash to go to the movies, just from learning when to say no at the grocery store. We’re on your team.
Who knows, maybe you’ll get to a point where you have enough disposable income to buy an app that tells you you’re rich. But you won’t, because it doesn’t fit into the plan.
Investment fees don’t work because they incentivize creating a financial plan that solves your problems with products, instead of with your current income. Financial Planners should be creating plans that work for your life, that help you reach the best goals for your family. They need to be flexible, realistic, and highly adaptable. Instead, pay someone for their expertise, whose primary focus is on your financial happiness. Choose a Net Worth Manager.