Fee-Only vs Fee-Based FAQs
This FAQ explains how financial planning services are structured, the difference between fee-only and fee-based financial planning, and how investment costs such as management expense ratios (MERs) work. Tara Downs Rocchetti, CFP®, works with individuals and families across Hamilton, Burlington, Oakville and surrounding areas to develop long‑term financial planning strategies and plans for their current and future goals.
What services does Tara Downs Rocchetti provide?
Tara Downs Rocchetti, a Certified Financial Planner®, works with clients to develop comprehensive financial plans tailored to their individual needs. Her planning process considers areas such as retirement planning, investment strategy, tax considerations, and long-term financial planning. Clients often work with Tara when they want greater clarity around their finances or are preparing for a major life change.
What is a fee-only financial planner?
A fee-only financial planner is compensated directly by clients for financial planning services and does not receive sales‑related compensation connected to financial products. Under FP Canada Standards, a professional may only describe services as fee‑only when neither the professional, their firm, nor related parties receive commissions or other sales‑related compensation connected to professional services.
What is a fee-based financial planner?
A fee-based financial planner may receive compensation through financial planning fees, portfolio management fees, or investment products that include built‑in costs such as management expense ratios (MERs). Many financial planners combine financial planning with investment implementation so that the investment strategy supports the financial plan.
What is a Management Expense Ratio (MER)?
A Management Expense Ratio (MER) represents the ongoing cost associated with managing and administering an investment fund. The MER is built into the investment fund and typically covers portfolio management and operating expenses.
Are MERs charged separately to investors?
MERs are typically built into the investment fund and reflected in the overall performance of the fund rather than billed as a separate invoice.
This FAQ explains how financial planning services are structured, the difference between fee-only and fee-based financial planning, and how investment costs such as management expense ratios (MERs) work. Tara Downs Rocchetti, CFP®, works with individuals and families across Hamilton, Burlington, Oakville and surrounding areas to develop long‑term financial planning strategies and plans for their current and future goals.
What services does Tara Downs Rocchetti provide?
Tara Downs Rocchetti, a Certified Financial Planner®, works with clients to develop comprehensive financial plans tailored to their individual needs. Her planning process considers areas such as retirement planning, investment strategy, tax considerations, and long-term financial planning. Clients often work with Tara when they want greater clarity around their finances or are preparing for a major life change.
What is a fee-only financial planner?
A fee-only financial planner is compensated directly by clients for financial planning services and does not receive sales‑related compensation connected to financial products. Under FP Canada Standards, a professional may only describe services as fee‑only when neither the professional, their firm, nor related parties receive commissions or other sales‑related compensation connected to professional services.
What is a fee-based financial planner?
A fee-based financial planner may receive compensation through financial planning fees, portfolio management fees, or investment products that include built‑in costs such as management expense ratios (MERs). Many financial planners combine financial planning with investment implementation so that the investment strategy supports the financial plan.
What is a Management Expense Ratio (MER)?
A Management Expense Ratio (MER) represents the ongoing cost associated with managing and administering an investment fund. The MER is built into the investment fund and typically covers portfolio management and operating expenses.
Are MERs charged separately to investors?
MERs are typically built into the investment fund and reflected in the overall performance of the fund rather than billed as a separate invoice.
