What does financial advice really cost?
Compare percentage-based and membership pricing side by side, with honest maths and no thumb on the scale.
How advisor fees work in South Africa
Percentage of assets (AUM)
The advisor charges a percentage of the money they manage for you, commonly 0.5% to 1.5% per year in South Africa. The rand amount rises and falls with your portfolio.
Fixed membership
A set annual fee based on the complexity of your situation rather than the size of your balance. Our Foundation and Horizon memberships work this way.
Once-off or hourly
A single fee for a financial plan, or an hourly rate for specific questions. Useful for one-time needs, but ongoing management isn't included.
Commission-based
The advisor is paid by product providers when you buy certain products. Legal and regulated in South Africa, but it can create conflicts of interest — the FAIS disclosure must spell out any commissions.
What would each model cost you?
Adjust the numbers to your situation. Either model can come out ahead, depending on your portfolio size, the fee rate, and your time horizon.
Foundation membership
R 17 884 105
Total fees: R 2 678 342
Percentage fee (1.00%)
R 19 061 146
Total fees: R 2 194 514
The difference
R 1 177 041
The 1.00% fee ends ahead after 20 years
With a 1.00% fee against Foundation pricing, year-one costs match at a portfolio of roughly R8.1M. Below that, the percentage fee starts cheaper; above it, the membership does. The longer the horizon, the more the gap compounds, in whichever direction it runs.
Both projections assume 8% annual growth before advice fees, with each model's fee deducted from the portfolio every year. The membership fee escalates at 5% per year; the percentage fee scales with your balance automatically. Product and platform fees are excluded (they apply under both models). For illustration only. Actual returns, fees, and outcomes will vary.
When each model costs less
The maths has a crossover point. A percentage fee starts small in rand terms and grows with your portfolio. A fixed membership starts as a bigger share of a small portfolio and becomes a smaller share of a large one. Below the crossover, percentage pricing usually costs less; above it, a membership usually does.
Cost isn’t the whole picture. The depth of service you receive — how proactively your tax, estate, and investments are managed — matters as much as the fee model. A cheap fee for advice that never happens is expensive.
That’s why we don’t take a side in the fee debate. We qualify every client individually and recommend the pricing architecture that fits your context: a membership where that serves you best, or percentage-based pricing where it genuinely suits your situation. See how qualification works on our pricing page.
Common questions about advisor fees
Investments can fall as well as rise. Past performance is not a guarantee of future returns, and you may get back less than you invested. The calculator on this page is for illustration only and does not constitute financial advice. Full regulatory disclosures are available on our FAIS Disclosure page.
Pricing built around you, not a formula.
Answer a few questions and we'll recommend the pricing architecture that fits your life.