Financial Advisor Value Calculator

Discover how professional financial advice creates value that exceeds the cost of advisor fees through behavior gap prevention, tax optimization, and holistic planning.

Investment Parameters

Risk Tolerance

Current Portfolio Value ($)

Monthly Contribution ($)

Expected Annual Return (%)

Investment Period (years)

Advisor Fee (%)(Typical fee-based advisor charges 1%)

Advisor Value Analysis

Portfolio with Professional Advisor

Final Portfolio Value:$2,932,226

Total Contributions:$980,000

Investment Gains:$1,952,226

Total Advisor Fees:$586,445

Advisor Value-Adds

Behavior Gap Prevention:

Avoiding emotional mistakes (studies show DIY investors underperform by 2.25% annually)

+$843,040

Tax Optimization:

TFSA/RRSP optimization, income splitting, tax-loss harvesting

+$439,834

Holistic Planning Benefits:

• Estate planning coordination
• Insurance needs analysis
• CPP/OAS optimization
• Retirement income planning

Net Benefit Analysis

DIY Portfolio

$2,089,186

No fees, but suffers from behavior gap

Advisor Portfolio

$2,932,226

With fees and value-adds

Net Benefit

+$843,040

ROI: Every $1 paid in fees returns $1.44 in value

Key Insights

•A single avoided panic-sell can pay for years of advisor fees
•Tax optimization alone often covers 75% of advisor costs
•Professional guidance provides peace of mind and disciplined strategy
•Canadian-specific strategies: TFSA/RRSP optimization, OAS clawback avoidance, dividend tax credits