XEQT + a Fee-Only Financial Planner: The Best of Both Worlds for Canadian Investors

I resisted paying for a financial planner for years because I thought I knew everything. I’d read every Canadian personal finance blog, listened to the podcasts, built my own spreadsheets. I was buying XEQT every month like clockwork. Why would I pay someone thousands of dollars to tell me what I already knew?

Then my tax situation got complicated. I started earning some self-employment income on the side, my partner and I were trying to figure out whether to prioritize her RRSP or my TFSA, we had an inheritance from her grandmother sitting in a savings account, and I was vaguely aware that I was probably making mistakes with how I was structuring things. But I didn’t know what I didn’t know.

A friend recommended a fee-only financial planner. I paid $2,500 for a comprehensive plan. In the first year alone, that plan saved me over $8,000 – between tax optimization I hadn’t considered, contribution room I was using inefficiently, and a spousal RRSP strategy that reduced our combined tax bill significantly. That $2,500 was the best investment I’ve ever made, and I didn’t have to change a single thing about my XEQT strategy.

Here’s the thing most people don’t realize: getting professional financial advice and investing in low-cost ETFs like XEQT aren’t mutually exclusive. In fact, combining the two might be the single best financial decision you can make as a Canadian investor. Let me break down exactly how this works.

1. The Three Models for Canadian Investors

There are essentially three ways to handle your finances as a Canadian investor. Each has trade-offs, and understanding them is the key to making the right choice for your situation.

Model 1: Full DIY with XEQT

You do everything yourself. You buy XEQT (or a similar all-in-one ETF), set up automatic contributions, and handle your own tax planning, account allocation, and financial decisions. Your total investment cost is XEQT’s MER of 0.20% – and that’s it.

Model 2: XEQT + Fee-Only Financial Planner

You still buy and manage XEQT yourself, keeping your investment costs at 0.20%. But you hire a fee-only financial planner to build a comprehensive financial plan, optimize your tax strategy, and help you make the big decisions. You pay a flat fee for the advice – typically $1,500 to $5,000 – and the planner never touches your investments. They advise. You execute.

Model 3: Traditional Percentage-Based Advisor

You hand your money to a financial advisor who manages everything for you. They pick the investments (usually mutual funds or their own portfolio models), handle the buying and selling, and charge you a percentage of your total portfolio – typically 1% to 2% annually. On top of that, you’re often paying MERs on the funds they choose, which can add another 0.5% to 2%.

The difference between these models isn’t just philosophical. It’s tens of thousands – sometimes hundreds of thousands – of dollars over a lifetime. And as we’ll see, the middle option often gives you the best of both worlds.

2. What a Fee-Only Financial Planner Actually Does

There’s a common misconception that a financial planner is someone who picks stocks for you. That’s a financial advisor (or portfolio manager). A fee-only financial planner does something completely different – and arguably more valuable.

Here’s what a comprehensive financial plan from a fee-only planner typically covers:

• Tax optimization. This is often where the biggest value lies. A planner will look at your complete tax picture – your marginal rate, your partner’s rate, available credits and deductions – and build a strategy to minimize your lifetime tax bill. This includes deciding how to split income, when to contribute to which accounts, and how to withdraw in retirement.

• Account allocation strategy. Should you max out your TFSA or your RRSP first? What about an FHSA? The answer depends on your income, your tax bracket, your future plans, and a dozen other variables. A fee-only planner will map this out for you with actual numbers.

• Retirement projections. When can you actually retire? How much do you need? What’s your CPP and OAS going to look like? A planner will build detailed projections based on your specific situation, not generic rules of thumb.

• Estate planning coordination. Wills, beneficiary designations, powers of attorney, probate avoidance strategies, and how to structure things so your family isn’t left with a mess. The planner won’t draft legal documents, but they’ll tell you exactly what you need and coordinate with your lawyer.

• Insurance review. Do you have enough life insurance? Too much? Is your disability coverage adequate? Are you overpaying for coverage you don’t need?

• Major financial decisions. Should you pay off your mortgage early or invest? Is it worth incorporating your side business? Should you take the commuted value of your pension? These are the questions that can have five- or six-figure impacts, and a planner gives you a clear, numbers-backed answer.

Here’s the critical part: a fee-only planner doesn’t manage your money. They don’t buy or sell investments on your behalf. They don’t earn commissions on the products they recommend. They have zero incentive to steer you toward expensive mutual funds or proprietary products. Their only incentive is to give you the best advice possible, because their reputation depends on it.

You walk out of the engagement with a written plan. Then you go home, log into your Wealthsimple account, and keep buying XEQT. Nothing about your investment strategy changes. Everything about your financial strategy improves.

3. The Real Cost: Fee-Only vs Percentage-Based Advisors

This is where the math gets interesting – and where a lot of Canadians are unknowingly leaving enormous amounts of money on the table.

Fee-Only Planner Costs

Fee-only planners in Canada typically charge in one of two ways:

• One-time comprehensive plan: $1,500 to $5,000, depending on the complexity of your situation and the planner’s experience.
• Ongoing annual retainer: $2,000 to $4,000 per year, which includes regular check-ins, plan updates, and access to the planner for questions throughout the year.

These fees are fixed. They don’t increase as your portfolio grows. Whether you have $100,000 or $2,000,000 in investments, you’re paying the same flat fee.

Percentage-Based Advisor Costs

Traditional advisors charge 1% to 2% of your assets under management (AUM), every single year. Some charge less for larger portfolios, but 1% is the standard baseline. And this is on top of the MERs on whatever funds they put you in.

The critical thing to understand is that percentage-based fees scale with your portfolio. As your investments grow, your advisor’s fee grows with them – even though the work they’re doing for you hasn’t changed at all. A 1% fee on a $500,000 portfolio is $5,000 per year. On a $1,000,000 portfolio, it’s $10,000 per year. The advisor isn’t doing twice the work. You’re just paying twice as much.

4. The Math: How Much You Actually Save

Let’s run the numbers on a $500,000 portfolio and see what each model costs over 25 years, assuming 7% annual returns before fees.

Scenario 1: DIY XEQT (0.20% MER)

• Annual fee: $1,000 (growing with portfolio)
• Total fees over 25 years: approximately $54,000
• Portfolio value at year 25: approximately $2,560,000

Scenario 2: XEQT + Fee-Only Planner ($3,000/year retainer + 0.20% MER)

• Annual fee: $4,000 in year one (growing MER + fixed retainer)
• Total fees over 25 years: approximately $129,000
• Portfolio value at year 25: approximately $2,430,000

Scenario 3: Percentage-Based Advisor (1% AUM + 0.50% fund MER)

• Annual fee: $7,500 in year one (growing with portfolio)
• Total fees over 25 years: approximately $540,000
• Portfolio value at year 25: approximately $1,880,000

Read those numbers again. The difference between the fee-only model and the percentage-based model is roughly $550,000 over 25 years. That’s not a typo. The fixed-fee model costs about $129,000 in total fees (planner retainer plus XEQT’s tiny MER). The percentage-based model costs about $540,000 in total fees. Even accounting for the fact that a good advisor might provide some value, it’s very difficult to justify a $400,000+ fee differential.

And here’s the kicker: the fee-only planner is often providing better advice, because they’re not conflicted by the need to keep your assets under their management.

Cost Comparison Across Portfolio Sizes

Notice the crossover point. For smaller portfolios (under $250,000), the percentage-based advisor is actually cheaper than the fee-only model on a pure cost basis. That’s important context. But as your portfolio grows – which is the entire point of investing – the percentage-based model becomes increasingly expensive while the fee-only model stays nearly flat.

For anyone with more than $250,000 in investable assets, the XEQT + fee-only planner combination is almost certainly the better deal. And for portfolios above $500,000, it’s not even close.

5. When You Actually Need Professional Advice

Let me be honest: not everyone needs a financial planner. If your situation is straightforward, you can absolutely handle things on your own with XEQT. But there are situations where professional advice isn’t just nice to have – it’s a significant money-saver.

You should seriously consider a fee-only planner if:

• You have a complex tax situation. Multiple income sources, self-employment income, rental properties, stock options, or significant capital gains. The tax implications of getting this wrong can be enormous.

• You’re a business owner or incorporated professional. The decision of how much to pay yourself in salary vs dividends, whether to invest inside or outside the corporation, and how to structure your retirement draws from the corp – these are questions where the wrong answer can cost you tens of thousands of dollars.

• You’re going through a major life transition. Divorce, inheritance, death of a spouse, early retirement, or receiving a large lump sum. These events create both financial complexity and emotional vulnerability. A planner provides objective, clear-headed guidance when you need it most.

• You and your partner have significantly different incomes. Income splitting, spousal RRSP strategies, and coordinating benefits between two different employers require careful planning. Most couples leave money on the table here without realizing it.

• You’re within 10 years of retirement. The transition from accumulation to decumulation is the most financially complex period of most people’s lives. When to take CPP, how to draw down accounts tax-efficiently, how to manage sequence-of-returns risk – these are questions where professional advice pays for itself many times over.

• You’ve received an inheritance. A sudden influx of money creates questions about tax efficiency, account allocation, and how to integrate the new assets with your existing plan. If the inheritance includes non-liquid assets like real estate or a business, the complexity multiplies.

• Your estate planning is anything beyond “everything goes to my spouse.” If you have children from previous relationships, aging parents you support, charitable giving goals, or assets in multiple provinces, your estate plan needs professional attention.

6. When DIY XEQT Alone Is Perfectly Fine

On the flip side, there are plenty of situations where a financial planner is an unnecessary expense. Don’t let anyone tell you that you need professional advice if your situation looks like this:

• You’re in your 20s or early 30s with a single income source. You have an employer, you get a T4, you contribute to your TFSA and maybe your RRSP. Your financial plan is “buy XEQT every month and don’t sell.” That’s legitimately a great plan, and you don’t need to pay someone $3,000 to tell you that.

• Your finances are straightforward. No self-employment income, no rental properties, no stock options, no complex family situation. Just a salary, some savings, and a goal of building wealth over time.

• You’re comfortable with basic tax planning. You understand the difference between a TFSA and an RRSP, you know which one to prioritize at your income level, and you’re maxing out what you can.

• You don’t have dependents or complex estate needs. If you’re single or in a straightforward partnership with no kids, your estate planning is relatively simple.

• You’re willing to educate yourself. You read personal finance content, you understand the basics of investing and tax strategy, and you’re confident making your own decisions.

If that’s you, keep doing what you’re doing. Buy XEQT, set up automatic contributions, and revisit the question of professional advice when your situation changes – which it inevitably will.

7. How to Find a Fee-Only Planner in Canada

Finding a true fee-only financial planner in Canada takes a bit of work, because the financial services industry is full of people who call themselves fee-based or fee-only but are actually earning commissions on the products they sell. Here’s how to find the real deal.

Where to Look

• FP Canada (fpcanada.ca). This is the professional body that grants the CFP (Certified Financial Planner) and QAFP (Qualified Associate Financial Planner) designations. Their directory lets you search for planners by location and service type.

• Fee-Only Planner Directories. Websites like the Money Coaches Canada directory and Advice-Only Planner listings help you find planners who explicitly operate on a fee-only basis.

• Word of Mouth. Ask friends, family, or colleagues who’ve worked with a fee-only planner. Personal referrals are often the best way to find someone good.

How to Verify They’re Actually Fee-Only

Not everyone who says “fee-only” means it. Ask these questions directly:

• “Do you receive any commissions, referral fees, or trailing commissions from any financial products?” The answer should be an unambiguous no.

• “How exactly are you compensated?” They should be able to clearly explain their fee structure: flat fee, hourly rate, or annual retainer. If the answer involves a percentage of your assets, they’re not fee-only.

• “Will you provide a written engagement letter outlining your fees and services?” Any reputable planner will do this. If they won’t, walk away.

Designations to Look For

• CFP (Certified Financial Planner). This is the gold standard in Canada. It requires education, a comprehensive exam, work experience, and ongoing continuing education.

• CPA (Chartered Professional Accountant). Some CPAs also do financial planning, and they’re particularly strong on tax strategy.

• TEP (Trust and Estate Practitioner). If your needs are primarily estate-related, look for this designation.

8. What to Ask at Your First Meeting

Your initial meeting with a fee-only planner is usually a free consultation (30 to 60 minutes) where you both assess whether it’s a good fit. Come prepared with these questions:

About Their Process:

• What does your financial planning process look like from start to finish?
• How long does it typically take to deliver a completed plan?
• How many meetings or touchpoints are included?
• Do you provide a written plan I can refer to?

About Their Experience:

• How long have you been practicing as a fee-only planner?
• Have you worked with clients in a situation similar to mine?
• What designations do you hold?

About Their Approach to Investing:

• Are you comfortable with clients who self-manage their investments in XEQT or similar ETFs?
• Will you try to steer me toward specific investment products?

That last question is important. You want a planner who will work with your XEQT strategy, not against it.

What to Bring:

• Your most recent tax returns (at least 2 years)
• Statements for all investment and bank accounts
• Details of any employer benefits (pension, group RRSP, insurance)
• Your most recent mortgage statement
• Details of any debts
• A rough idea of your financial goals and timeline

9. The “Once Every Few Years” Model

Here’s a strategy that I think is the sweet spot for most Canadian investors who use XEQT: get a comprehensive financial plan every 3 to 5 years, and invest on autopilot in between.

This model works because:

• Your core investment strategy doesn’t change. You’re buying XEQT consistently. That’s the plan, and it’s a good one. You don’t need a planner to tell you to keep doing it every year.

• Your financial situation does change, but slowly. Major life events – marriage, kids, home purchase, career change, inheritance – happen infrequently. When they do, that’s when you book a session with your planner.

• Tax laws and rules change. The FHSA didn’t exist before 2023. Capital gains inclusion rates have changed. TFSA contribution limits increase. Every few years, it’s worth having someone look at your overall strategy in light of current rules.

• It’s cost-effective. A $3,000 plan every four years averages out to $750 per year – a fraction of what a percentage-based advisor charges. And you’re still getting professional, personalized advice.

What This Looks Like in Practice

Year 1: Get a comprehensive financial plan. Implement the recommendations. Set up your XEQT automatic purchases through your brokerage.

Years 2-3: Follow the plan. Buy XEQT on schedule. Max out your accounts in the order the planner recommended. File your taxes using the strategies they outlined. Don’t overthink it.

Year 4 (or whenever something major changes): Go back to the planner for an updated plan. They’ll review what’s changed, adjust the projections, and give you a fresh set of recommendations for the next few years.

This is the model I follow personally. You get the peace of mind of knowing a professional has reviewed your situation. You keep the ultra-low costs of managing your own XEQT portfolio. And you don’t waste money on ongoing advisory fees during the years when nothing significant has changed.

10. Putting It All Together

The financial services industry wants you to believe that managing your money is so complex that you need to hand it all over to a professional and pay them 1% to 2% of your entire portfolio, every single year, forever. For most Canadians, that’s just not true.

The reality is that investing is the easy part. Buy XEQT. Contribute regularly. Don’t sell during downturns. That’s a strategy that will outperform most actively managed portfolios over the long term, and it costs you 0.20% per year.

Financial planning is the hard part – and it’s where most of the real value lies. Tax optimization, account allocation, estate planning, retirement projections, insurance analysis. These are the areas where professional advice can save you tens of thousands of dollars. And you can get that advice for a flat fee, without giving up control of your investments.

Here’s the bottom line:

• If your situation is simple, keep doing what you’re doing. Buy XEQT, max out your registered accounts, and revisit the question when life gets more complicated.

• If your situation is moderately complex, get a comprehensive financial plan from a fee-only planner every 3 to 5 years. It’ll cost you a fraction of what a percentage-based advisor charges, and the advice will often be better because it’s unbiased.

• If your situation is highly complex, get an annual retainer with a fee-only planner. At $3,000 to $4,000 per year, it’s still dramatically cheaper than the percentage-based model, and you’ll have ongoing access to professional guidance.

In every single one of these scenarios, XEQT is your investment strategy. The only question is how much financial planning support you need around it.

You’re not choosing between professional advice and low fees. With XEQT and a fee-only planner, you’re getting both.