The Best of Both Worlds

Why K4 Financial Works

As a CERTIFIED FINANCIAL PLANNER Professional, I am aware of two things:

  1. Lowering your investment fees will improve your investment performance.
  2. Working with a financial planner will increase your net worth.

The problem is that usually you have to sacrifice one over the other. If you work with a financial planner, they will give you ongoing advice and support that will increase your net worth over time, but in order to work with them you have to pay higher investment fees. They do need to get paid for these services and currently this is pretty much the only model available to Canadians.

-Let’s assume the average investment fee is 2.20% and advisors increase their average clients net worth by 1.70% (This number varies depending on which study you reference, but every study shows that advisors bring value). This is all advisors as well and not just CFP® Professionals, who I would assume bring more value than average mutual fund representatives.

Or, you could decrease your investment fees by not working with an advisor and using a lower cost investment option. Do-it yourselfers can basically get their fees close to 0%, but I’m going to assume they pay 0.20% for their ETF Portfolio. They will increase their investment performance by 2.0%, but not benefit from the value of advice. In this case, the investor will be slightly better off by going it alone.

Others will not want to manage their own money, but will want lower investment fees,so they will use a RoboAdvisor and they will pay 0.70% on their investment portfolio. This will improve their investment performance by 1.50%, but they will no longer benefit from professional advice and guidance.

In this case, you can see that the average consumer is actually going to be 0.20% better off by using an advisor – even though they have decreased their returns.

Now For the Reason Why K4 is Easily the Best of Both Worlds

I have created a system which allows me to provide full financial planning advice, that’s more thorough than most consumers will ever receive, while still being able to provide clients with lower cost investment options.

In short, you will receive the same, or – in my opinion – way better Professional Financial Planning advice, while being able to benefit from lower cost investment options.

Let’s Take a Look at the Difference

So, now we have an investment fee of 1.15%, which is 1.05% lower than the average mutual fund fee in Canada and you still get professional financial planning advice, which should increase your net worth by an extra 1.70%.

You have just increased your overall net worth by 2.85% by deciding to work with a CERTIFIED FINANCIAL PLANNER Professional, who has the ability to still make money while providing clients with low-cost investment advice.


Financial Options

Seems like no-brainer to me.

*Please note that these values aren’t guaranteed