Last Updated on 19/03/2025 by Carl-Peter Lehmann
The way you pay for financial advice can significantly impact your long-term wealth. Traditional commission-based and percentage-of-assets (AUM) fee structures often mean that as your investments grow, so do the costs – without necessarily increasing the value of advice you receive. More investors are recognizing this misalignment and seeking truly impartial, unbiased guidance rather than feeling like they’re being sold a product. This shift is driving a move toward flat fee financial advisors and flat fee wealth managers, who offer a transparent, predictable cost for financial planning and investment management. By eliminating percentage-based fees and commissions, this model ensures that advice is based solely on your needs—not on how much you invest. In this article, we explore the numerous benefits of this approach, contrast it with traditional pricing models, and explain why we believe flat fee wealth management is the way forward.
Fixed Fee vs. Flat Fee Financial Advisors: What’s the Difference?
Not all fee-based financial advice or wealth management is the same, and it’s important to understand the distinction between fixed fees and flat fees when evaluating your options:
1. Fixed Fee Financial Advisor – Charges a one-time, set fee for specific services. For example, you might pay R20,000 – 25,000 for a comprehensive financial plan, which could include investment strategies, tax planning, and retirement projections. Implementation of financial products may or may not be included, depending on your needs.
2. Flat Fee Financial Advisor – Charges a standardized monthly or annual fee for ongoing financial advice, investment management, and implementation. For instance, a flat fee advisor might charge R2,000 per month, ensuring continuous guidance that adapts to your financial situation without fees fluctuating based on your assets under management.
Both models move away from percentage-based fees, providing greater transparency and cost predictability, but a flat fee wealth manager ensures that your long-term financial needs are continuously addressed without hidden costs or conflicts of interest.
5 Key Benefits of Working with a Flat Fee Wealth Manager or Financial Advisor
1. Transparency and Predictability
One of the biggest advantages of working with a flat fee financial advisor is cost clarity from the outset. With a fixed or flat fee model, you know exactly what you’re paying for, making it easier to budget and plan. In contrast, traditional AUM-based fees fluctuate with market performance, meaning you could pay more even if the quality or scope of advice doesn’t change. A flat fee wealth manager eliminates this uncertainty, ensuring fair and predictable costs.
2. Impartiality and Unbiased Advice
A fixed or flat fee structure ensures that financial advice or wealth management is given without hidden incentives. Traditional commission-based or AUM advisors might have financial reasons to discourage clients from withdrawing funds or investing in assets outside of managed portfolios. With a flat fee financial advisor, your planner is free to offer unbiased advice – whether you need to access capital, consider a property purchase, or explore alternative investments.
3. No Conflicts of Interest
Flat fee wealth managers provide guidance on your entire financial picture or balance sheet, not just the areas they can profit from. This is particularly important when considering investment decisions that fall outside traditional portfolios.
Property as an Example: If you’re thinking about property investment, an AUM-based advisor might discourage it – since real estate falls outside of managed portfolios and doesn’t contribute to their fees. A flat fee wealth manager avoids this conflict, offering objective advice on all wealth-building opportunities.
4. Cost-Efficiency Over Time
Lower fees can significantly impact long-term wealth accumulation. A common example illustrates this clearly:
✅ Paying 2% less in total fees over 40 years could increase your retirement savings by over 60%.
A Real-World Example: Consider an investment of R10 million. A traditional AUM advisor charging 1% per year would take R100,000 annually – an amount that increases as your portfolio grows. By contrast, a flat fee financial advisor offers a cost-effective and transparent alternative, ensuring you retain more of your wealth.
5. The Advisor Isn’t the Investment Manager or Asset Manager
A financial planner’s role is to provide strategic guidance, not to control market performance. Yet, in AUM models, fees rise and fall with the market, which raises a critical question:
📉 Should an advisor earn more when markets rise by 20% – even if they haven’t done extra work?
Similarly, when markets drop, should your advisor automatically earn less? A flat fee wealth manager charges for expertise and service, not market fluctuations, ensuring fair and consistent value.
How Our Flat Fee Wealth Management Works at Henceforward
After understanding the universal benefits of fixed and flat fee financial advice, let’s explore how Henceforward’s tailored flat fee model aligns with different financial needs and what makes us one of the top flat-fee advice firms in the country:
- As experienced wealth managers with over 20 years in the industry, we believe in transparent, value-based pricing rather than percentage-based fees. Our team consists of Certified Financial Planners (CFPs®) who charge R2,000 per hour for financial advice and R300 per hour for administrative work.
Using these benchmarks, we calculate the time typically spent with different client types based on the complexity of their financial situation. This ensures that each client pays for the level of service they require—nothing more, nothing less. Our flat fee structure is designed around this time-based approach, making it a fair and predictable way to access high-quality financial advice.
Here’s how our flat fee model applies to different client needs:
Retiree Clients (Starting at R2,500 per month or R30,000 p.a.)
Designed for individuals who have built a substantial retirement nest egg – typically R10 million or more – and seek expert guidance to ensure their wealth supports a secure and fulfilling retirement. Our services include:
- Investment management tailored to long-term income needs
- Cashflow modeling to align spending with sustainable withdrawal rates
- Estate planning to ensure efficient wealth transfer
- Tax optimization strategies to maximize after-tax income
For Professionals and Millennials: Wealth Accumulators (Starting at R2,000 per month or R24,000 p.a.)
Ideal for professionals, entrepreneurs, and high-earning individuals focused on:
- Growing their balance sheets through disciplined investment strategies
- Achieving financial freedom with tailored savings, retirement and debt reduction plans
- Taking care of loved ones (partners, spouses, and children) with structured wealth-building and protection strategies
This plan ensures that your financial foundation is strong, helping you transition from wealth accumulation to financial independence.
For Family Office Clients (Starting at R10,000 per month or R120,000 p.a.)
For individuals and families managing balance sheets of R100 million or more, our family office services provide sophisticated wealth management solutions, including:
- Comprehensive portfolio oversight across multiple asset classes
- Intergenerational wealth structuring to preserve family wealth
- Bespoke investment strategies aligned with long-term financial goals
- Customised financial services tailored to complex financial needs
With a focus on holistic wealth management, we provide strategic financial guidance that goes beyond investment advice—ensuring your wealth is structured, protected, and optimized across generations.
Case Study: How Flat Fees Reflect Complexity, Not Just Asset Size
A key advantage of working with a flat fee financial advisor or wealth manager is that pricing is based on the level of service required – not simply on the size of your portfolio. Below, we contrast two retiree clients, each with a R30 million balance sheet, but with very different levels of complexity.
Client 1: A More Complex Retirement Structure
💰 Balance Sheet: R30 million
🌍 Investment Structure: Mix of local and offshore assets, including:
- A living annuity providing retirement income
- Discretionary local investments
- Offshore investment portfolio with international reporting requirements
- A customized direct share portfolio, requiring active management and ongoing oversight
📊 Complexity Factors:
This client’s financial situation involves additional layers of administration, particularly due to offshore investments and direct share holdings. Managing cross-border reporting, tax implications, and a diversified portfolio across jurisdictions requires significant expertise and time commitment.
💳 Flat Fee Pricing: R54,000 per year (R4,500 per month)
This reflects the additional time, expertise, and administrative work required to effectively manage their wealth across multiple jurisdictions while ensuring seamless retirement income planning.
Client 2: A Simpler Retirement Structure
💰 Balance Sheet: R30 million
📍 Investment Structure:
- Living annuity as the primary income source
- Basic discretionary local investments
📊 Complexity Factors:
This client’s financial affairs are more straightforward, with no offshore holdings or direct share portfolios that require additional management. Their primary need is income planning and ongoing financial oversight, but without the intricate reporting and structuring required in more complex cases.
💳 Flat Fee Pricing: R30,000 per year (R2,500 per month)
Since their financial structure is simpler, they benefit from Henceforward’s starting-level pricing, ensuring they receive high-quality advice without overpaying for unnecessary services.
Key Takeaways: How Flat Fees Ensure Fair Pricing
🔹 Both clients have R30 million in assets, yet their fee structures differ because cost is based on complexity and service requirements, not just portfolio size.
🔹 Traditional AUM-based advisors would charge the same percentage-based fee for both clients, even though Client 1 requires far more work. With a flat fee model, each client pays for the service they actually need, making it a fairer and more transparent pricing approach.
🔹 A flat fee wealth manager ensures that retirees receive comprehensive, personalized financial planning – without unnecessary costs inflating alongside their assets.
Conclusion
The way you pay for financial advice can make a substantial difference in your long-term wealth outcomes. Traditional percentage-based fees often create misaligned incentives, where costs rise with your portfolio – regardless of the level of service provided. In contrast, a flat fee financial advisor ensures that you receive transparent, unbiased, and cost-efficient financial planning without unnecessary costs eating into your returns.
At Henceforward, our flat fee wealth management model is built on fairness, expertise, and transparency. With over 20 years of experience, CFP® credentials, and a commitment to value-based pricing, we provide financial advice that is tailored to your needs – not dictated by how much you invest.
Whether you are a retiree managing a substantial nest egg, a wealth accumulator building your financial future, or a family office client with complex wealth management needs, our approach ensures that you get the right level of service for a clear and predictable fee.
If you’re looking for a financial partner who prioritizes your success over percentages, let’s start a conversation.
Carl-Peter Lehmann
Carl-Peter is a Certified Financial Planner (CFP®) and Partner & Director at Henceforward, with over 20 years of experience in wealth management and financial planning. Passionate about achieving better financial outcomes for clients, he advocates for a transparent, client-centric approach that prioritizes fair pricing, unbiased advice, and long-term financial security. As a strong proponent of flat fee financial planning, CP is dedicated to aligning interests with clients, ensuring they receive high-quality, tailored advice without conflicts of interest.
