The benefits of a flat subscription fee for financial planning

A clear and simple way of charging for your plan, the portfolio, and your partner.

The benefits of a flat subscription fee

A flat subscription fee puts you in control and will save you money over your investing lifetime. The primary objective of investing is for your money to grow in real terms after inflation. The investment industry applies charges for investing your savings, typically as a fixed percentage of the ongoing value of your portfolio. This percentage acts as a long-term drag on your investment return. There is a new alternative to the percentage charge: the flat subscription fee.

For almost 100 years, the investment industry has charged investors a percentage of their investment-fund value. The percentage charge has consistently been close to 1%. A single percentage point seems trivial and irrelevant in the eyes of most investors.

It isn’t.

In fact, your investment yield is dramatically affected by percentage compounding over a long period. Investors couldn’t see what they were losing - and that was the problem. Thankfully, now you can.

Giving you the ability to see and evaluate the effect of charges on your investment has taken European legislation (MiFID II), plus enforcement by the UK regulator, the Financial Conduct Authority (FCA). This page shows you just how important the Flat Fee vs Percentage charging alternative is to you and your investing future.

Why a flat fee?


The 8th wonder of the world – compounding

Albert Einstein claimed that compound interest is the eighth wonder of the world. Unfortunately, unless you are a mathematician or an actuary, the effect of compounded percentage fees on rising and fluctuating investment values is extremely difficult to calculate. That could be precisely why it was dreamt up by the investment industry, to begin with. You want your investment return to compound and grow over time. But you don’t want your fees to do the same. Breaking the link means that the gap between your returns and the fee paid widens over time. All to your advantage. Which is what you want.


Why pay for something you don’t get?

In most walks of life, if you want more, you pay more. This applies to anything from upgrades to your new car to an extra side dish with your restaurant meal. Wealth management doesn't (currently) work like that. This is why Capital broke the link. Imagine investing £1 million and being charged 1% of the value (£10,000 a year). Assume that your investment portfolio doubles over 10 years. Your portfolio is now worth £2 million, and the 1% fee is £20,000 a year. The service stays the same, but you now pay double (£20,000 a year). Does that make sense or feel fair to you? We don't think so.


Use the flat subscription fee savings calculator

Use our calculator to see the effect of percentage charges on your own portfolio. Enter your investment portfolio value and the investing time period. The calculator assumes the same rate of annual return. The financial difference is directly related to the time period. The money-gap is not based on future investment returns (because these are yet unknown). The gap grows based on known fundamentals: facts and evidence. The results may surprise you. They can also empower you. If the advantage is there, why not take it? A free lunch doesn’t always come along. See the calculator below:

Flat Fee Calculator

Discover how much money you could save by switching to a flat fee by using our flat fee calculator.

Please complete this field.
Please complete this field.
Please complete this field.

Your privacy and security is important to us
In order to process your request, we need your permission to contact you via email. The information that you provide will only be used to respond to your request. Your data is very important to us click here to find out how we store and care for it.

Please complete this field.

Your results show how much you could save over your entire investment period, as well as your annual average.

Over ${ investmentTerm } years, you could save:

${ output.totalSavings }

That is a yearly average of ${ output.annualisedSavings }

Calculate Again

Four reasons percentage charging is eating your wealth


Mike and sue-720p-e1cf578f-7731-4be0-a350-da91a1db3e54 (1)


Get your guide to flat fee financial planning

The search for a fairer way to pay for wealth management: Fixing the broken wealth management fee model: paying for what you don't get. How investors can be receiving confused and conflicted advice, often paying too much for it and what to do to fix the problem. 

Investing your money the right way

Don’t throw your hard-earned money away or leave your future to chance.

Instead of fancy sales brochures or marketing hype, base your decisions on hard facts and solid evidence.

Investing your money in the long-term is vitally important for you and your family. You can’t roll back time and start again - it’s too important to get wrong. You don’t get a second chance.

Put the power of compounding returns and time to your advantage, and bin the compounding charges that are eating your wealth.

How to invest intelligently

Related Articles

A few of our insightful articles


Four Reasons You Should Switch to a Flat Fee Financial Planner

by Chelsey Southern

In recent years the birth of the flat fee financial planner has disrupted the financial planning marketplace. Learn the ...


Four Reasons You Should Switch to a Flat Fee Financial Planner

by Chelsey Southern

In recent years the birth of the flat fee financial planner has disrupted the financial planning marketplace. Learn the ...


The largest annual cost you didn’t know you had, and why it really matters

by Don Fraser

A telescope is a marvellous thing. But you need to look into the right end of it to see properly. Objects far away can ...


Get in touch with an adviser

Simply fill in the form below or phone 020 7398 6600 and we will be in touch.