What does independent financial advice really cost?

The most uncomfortable question is the most important one: what does my advisor actually earn – and from what? If you can't get a clear answer, you should leave. Here is the answer we give every client before they decide.

The three remuneration models

Commission-based advice: the advisor is paid by the product provider. That is not automatically bad – but you should know how much it is and whether it influences the recommendation. Fee-based advice: you pay directly, like a tax advisor. Service fee: a fixed percentage of assets under care per year, all services included.

How to recognise fair models

• Every remuneration is disclosed in writing before your decision
• Total costs (product + advice) stay below ~1.5% p.a.
• No performance fees that reward risky behaviour
• The advisor answers the cost question without evasion

At Novak Investments the rule is: you see every fee in black and white before you sign. Cost transparency is not a bonus – it is the foundation of trust.