Our Compensation Structure

AWG Financial Planning Compensation Structure

Understanding our compensation structure is one of the most important components of building a longstanding and transparent relationship. During our first discussion, we will explain exactly how it works and how our client’s success is directly correlated to our revenue. Simply put, we are paid directly from our partners based on the services and products you select to help accomplish your financial goals.

Understanding Total Cost Reporting: More Transparency, Better Conversations

Beginning with your 2026 annual investment statement, you will see more detail about the costs associated with your investments. This is part of a new industry-wide initiative called Total Cost Reporting (TCR).

The key point: these are not new. The costs have already been reflected in your investments. What is changing is that they will now be shown more clearly, including in both dollar and percentage terms.

What will you see?

Your statement will provide a clearer breakdown of the costs associated with owning your investments. One of the biggest changes is that you will see a Fund Expense Ratio (FER) for your investments. Think of it this way: MER + TER = FER

The Management Expense Ratio (MER) represents the cost of managing and operating the fund. It can include investment management, administration, taxes, advisor compensation where applicable, and in the case of segregated funds certain costs associated with insurance guarantees.

The Trading Expense Ratio (TER) represents the costs incurred when the investment manager buys and sells securities within the fund, such as brokerage and other trading costs.

Together, these make up the FER, which provides a more complete picture of the ongoing cost of owning the fund

Why haven’t I seen these costs before?

Many investment costs do not appear as a separate charge coming out of your bank account. Instead, they are deducted from the fund before the investment return is reported.

For example, if a fund earned 12% before fees and the total management cost was 2%, the return shown to you would be 10% NET.

Your investment statements already report personal rates of return after fees and expenses. Total Cost Reporting simply gives you greater visibility into what those costs represent.

While fees matter, they are only one part of the investment decision. The more relevant measure is your net return after cost, because that is what ultimately compounds over time. A lower-cost investment is not automatically the better investment, just as a higher-cost investment is not automatically better. What matters is whether the investment is delivering appropriate performance, diversification, risk management and value within your overall financial plan.

At Aspire Wealth Group, we view this added transparency as a positive change. It creates a better foundation to discuss not only what you are paying, but also what you are receiving through investment management, financial planning, retirement and tax strategies, ongoing advice and service.

The bottom line: the costs aren’t new, the transparency is.

Check out the video below for a further explanation.