On C$1 million, an advisor charging 1% costs C$10,000 a year, or C$11,300 in Ontario once 13% HST is added. A Canadian fee-only planner charging the median ongoing fee costs C$2,300 a year, and a one-time plan has a median of C$1,900. At this balance the percentage fee is several times the price, and the gap compounds every year your portfolio grows.
We use 1% because it’s the figure most people are quoted, and it’s the median rate among US fee-only firms (1%). There’s no Canadian median in our data: fewer than 12 Canadian fee-only firms published a percentage rate we could check. The planning fees below come from 21 firms for ongoing planning and 46 for one-time plans, so treat them as a guide.
The options at C$1 million
| How you pay | Year one | Over 10 years | Over 20 years |
|---|---|---|---|
| 1% of assets | C$10,000 | about C$120,000 | about C$298,000 |
| 1% plus 13% HST (Ontario) | C$11,300 | about C$135,000 | about C$332,000 |
| Ongoing planning fee (Canadian median) | C$2,300 | about C$23,000 | about C$46,000 |
| One-time plan (Canadian median) | C$1,900 once | ||
| Hourly planner (Canadian median rate) | C$250 an hour |
Assumes 5% annual growth before fees, with each year’s fee taken from that year’s starting balance. The ongoing fee is held at today’s median of C$2,300 a year. Planning fees carry GST or HST too, so add the same tax to both sides when you compare. Fee medians are what Canadian fee-only firms publish on their own websites.
What it does to your balance
Ending balance in Canadian dollars by how you pay, before sales tax. Hover or tap the chart for any year.
Source: Wellspent fee report (Canadian fee-only firms' published prices); 5% yearly growth before fees
Data
| Year | No advisory fee | 1% of assets | $2,300 flat fee |
|---|---|---|---|
| 0 | $1,000,000 | $1,000,000 | $1,000,000 |
| 5 | $1,276,282 | $1,216,653 | $1,263,573 |
| 10 | $1,628,895 | $1,480,244 | $1,599,965 |
| 15 | $2,078,928 | $1,800,944 | $2,029,297 |
| 20 | $2,653,298 | $2,191,123 | $2,577,246 |
Over 20 years, the difference between 1% and the median ongoing planning fee is about C$386,000 in ending value under these assumptions. That’s the real cost of the choice, more than any single year’s invoice.
Where the lines cross
Yearly cost in Canadian dollars by portfolio size, before sales tax
Source: Wellspent fee report (Canadian fee-only firms' published prices)
Data
| Assets | 1% of assets | $2,300 flat fee |
|---|---|---|
| $0 | $0 | $2,300 |
| $50K | $500 | $2,300 |
| $100K | $1,000 | $2,300 |
| $150K | $1,500 | $2,300 |
| $200K | $2,000 | $2,300 |
| $250K | $2,500 | $2,300 |
| $300K | $3,000 | $2,300 |
| $350K | $3,500 | $2,300 |
| $400K | $4,000 | $2,300 |
| $450K | $4,500 | $2,300 |
| $500K | $5,000 | $2,300 |
| $550K | $5,500 | $2,300 |
| $600K | $6,000 | $2,300 |
| $650K | $6,500 | $2,300 |
| $700K | $7,000 | $2,300 |
| $750K | $7,500 | $2,300 |
| $800K | $8,000 | $2,300 |
| $850K | $8,500 | $2,300 |
| $900K | $9,000 | $2,300 |
| $950K | $9,500 | $2,300 |
| $1M | $10,000 | $2,300 |
| $1.1M | $10,500 | $2,300 |
| $1.1M | $11,000 | $2,300 |
| $1.1M | $11,500 | $2,300 |
| $1.2M | $12,000 | $2,300 |
| $1.3M | $12,500 | $2,300 |
| $1.3M | $13,000 | $2,300 |
| $1.4M | $13,500 | $2,300 |
| $1.4M | $14,000 | $2,300 |
| $1.4M | $14,500 | $2,300 |
| $1.5M | $15,000 | $2,300 |
At the current median, 1% costs more than ongoing planning once your portfolio passes about C$230,000 (the median fee divided by 1%). By C$1 million it’s more than four times as much.
Three things that are different in Canada
Sales tax. Advice and asset management aren’t exempt financial services under the Excise Tax Act, so GST or HST is generally added to the fee. That’s 13% to 15% where HST applies, and at least the 5% GST elsewhere.
Fund costs on top. A 1% advisory fee is usually charged on top of the MER of the funds you hold. If your advisor is paid through commissions instead, the cost is inside the fund as a trailer fee, and you won’t see it on a bill. Either way, ask for your total cost in dollars: advisory fee, fund costs and sales tax together.
Deductibility. The CRA lets you deduct fees to manage your investments on line 22100, but not fees for services connected to an RRSP, RRIF, TFSA or FHSA. If most of your C$1 million is registered, most of the fee isn’t deductible.
When 1% makes sense at C$1 million
- You want the advisor to run the investments, rebalance and decide where each holding sits.
- You’re retiring soon and need an income plan across RRSPs, TFSAs, a pension and a non-registered account.
- The fee includes ongoing tax planning, estate coordination and quick help when life changes.
If you pay 1%, ask whether the rate drops as your balance grows, and whether the fee already includes the funds’ costs.
A fair test: ask for a list of what the advisor did for you last year. If it’s two meetings and a rebalance, you’re paying C$10,000 for work an advice-only planner would price at a fraction of that. If it’s a retirement income plan, a pension decision and tax work every spring, the fee is buying more.
When a flat or advice-only fee makes sense
- You’re comfortable holding a simple, low-cost portfolio of ETFs at your own brokerage.
- You mainly want planning: when to retire, how to draw income, how to cut tax.
- You’d rather your cost not rise just because markets did.
An advice-only planner charges for the plan or the hour and leaves the investing to you. Our guide to what fee-only advisors charge in Canada covers how those prices work.
What a fee-only planner would look at first
At C$1 million, most Canadians are within sight of retirement, and the questions change:
- How much you can safely spend, and from which accounts first
- RRSP withdrawals before 71, in the years before RRIF minimums and OAS begin, to smooth tax over your retirement
- When to start CPP and OAS, two of the largest decisions you’ll make
- The OAS clawback, and how account choices and income splitting with a spouse keep you under it
- Tax on your non-registered investments, including Canadian dividends and where each holding sits
What to ask
- What’s my total cost in dollars this year, including fund costs and sales tax?
- What’s my rate now, and at C$1.5 million and C$2 million?
- Would you quote a flat fee instead?
- Is there any way you or your firm earn money besides my fee, including insurance commissions or trailers?
Compare other amounts
The US versions of this guide, in US dollars: $500,000 · $1 million · $2 million · or use the fee calculator. For context on whether 1% is right for you, read is a 1% advisor fee too much? If you split your life across the border, see the cross-border specialty and financial planning for Canadian snowbirds.