Last Updated on 19/03/2025 by Carl-Peter Lehmann
Navigating financial decisions can feel overwhelming, especially when choosing a financial advisor or wealth manager. Increasingly, South Africans are turning to “fee-only” financial advisors to ensure transparent, unbiased guidance. Unlike commission-based or AUM advisors who might have incentives tied to products they sell, fee-only advisors charge a transparent, fixed or flat fee, aligning their interests directly with their clients’. At Henceforward, we’re proud advocates of this model, specializing in flat-fee, independent financial planning.
What Makes a Top Fee-Only Financial Advisor?
Fee-only financial advisors distinguish themselves from their peers by not accepting commissions or kickbacks from financial products. Instead, they charge straightforward fees for advice, creating a clear alignment of interests between client and advisor.
Key Benefits:
- No Conflicts of Interest: Advice is purely driven by the client’s financial well-being.
- Transparency: Fees are clearly communicated upfront, ensuring clients understand exactly what they’re paying for.
- Independent Product Selection: Advisors choose investment products based solely on merit, not financial incentives.
At Henceforward, we take fee-only advice a step further by offering a flat fee model based on the complexity of your financial situation. Our fees reflect the time, expertise, and resources required to effectively manage your unique needs, providing absolute clarity and fairness.
Benefits of Choosing a Flat Fee Financial Advisor
While many advisors charge fees based on the value of assets managed (known as “asset under management” or AUM fees), flat fee advisors like Henceforward provide a fixed-fee service tailored specifically to the complexity of your financial circumstances. This ensures consistent, predictable costs directly linked to the level of support and advice required.
Why Complexity-Based Flat Fees Are Advantageous:
1. Fairness: Clients pay according to the actual complexity and needs of their financial situations, not just asset size. This ensures wealthier clients with larger asset bases aren’t inadvertently cross-subsidizing clients with smaller asset bases, as each client is charged fairly and contributes profitably to the business based solely on their individual needs and complexity.
2. Complete Transparency: Clients understand upfront exactly how much they will pay each year, eliminating surprises and ambiguity.
3. No Incentive Misalignment: Fees are directly related to service provided, removing incentives for unnecessary transactions or product sales.
How to Find the Best Independent Financial Advisors Near You
Selecting the best financial advisor involves careful consideration. Here’s a practical checklist to evaluate financial advisors effectively:
✔️ Qualifications and Credentials: Ensure the advisor is a Certified Financial Planner (CFP®).
✔️ Clear, Transparent Fees: Look for clearly stated fees that are not linked to product sales or hidden commissions.
✔️ Independence: Verify the advisor has no institutional affiliations or incentives tied to product sales.
✔️ Tailored Advice: Confirm that the advisor offers personalized advice aligned with your specific financial goals and complexity.
✔️ Comprehensive Services: Choose advisors who provide integrated services including investment management, retirement planning, estate planning, tax planning, and cash flow management.
Henceforward excels across these criteria, delivering customized financial planning under our independent, complexity-based flat-fee structure.
Further Reading: The difference between a Certified Financial Planner and Financial Advisor
Complexity-Based Fee Model: A Case Study
To illustrate our complexity-based approach, consider two hypothetical clients, both with R20 million in investable assets:
Client A (Straightforward Situation): Retired professional with primarily liquid, local investments, minimal estate complexity, and straightforward tax circumstances. Annual fee might be around R40,000 due to lower complexity (compared to a typical AUM fee that could be anything between R100,000 – R200,000 p.a. at 0.50% – 1.00% p.a.)
Client B (Complex Situation): Business owner with substantial offshore investments, complex estate structures, trusts, and ongoing tax planning needs. Annual fee might be around R80,000 reflecting the significantly higher complexity and advisory workload.
This model ensures fairness, transparency, and that each client pays proportionately to the service they require (and time spent looking after them), not just based on their asset level.
Why Henceforward Ranks Among the Top Fee-Only Financial Advisors in South Africa
At Henceforward, we set ourselves apart through:
Complete Independence: No institutional ties or commission structures influence our advice.
Holistic, Tailored Financial Planning: Whether you’re a retiree, professional, or high-net-worth family, our planning is customized to your specific needs.
Transparent Complexity-Based Flat-Fee Model: Our fee structure clearly reflects the level of support and advisory complexity you require. As one of the pioneering firms in South Africa to adopt this model, we are uniquely positioned in an industry where very few advisors offer complexity-based flat fees, further distinguishing us from our peers.
Proven Track Record: We’ve consistently delivered measurable financial outcomes, achieving significant client satisfaction and trust.
Making the Right Choice for Your Financial Future
Selecting the right financial advisor is critical to achieving your long-term financial goals. With a fee-only, complexity-based flat-fee structure, Henceforward offers clarity, transparency, and confidence, enabling you to make informed decisions about your financial future.
Our team of qualified and experienced financial planners is committed to providing objective, unbiased advice tailored specifically to your unique circumstances. By eliminating conflicts of interest and ensuring full transparency in our fee structures, we empower you to navigate your financial journey with confidence and clarity.
Ready to experience truly unbiased financial planning? Contact Henceforward today for a complimentary initial consultation, and take the first step towards securing your financial future.
Further Reading: More Detail on How our Flat Fee Structure Works Including Pricing Info
Carl-Peter Lehmann
Carl-Peter is a Certified Financial Planner (CFP®) and Director at Henceforward, a pioneering independent financial planning firm based in Cape Town, South Africa (with clients throughout South Africa and internationally). With over 20 years of experience specializing in wealth management and offshore investments, Carl-Peter is passionate about delivering transparent, unbiased financial advice that empowers clients to confidently achieve their financial and lifestyle goals.
