Most people don’t realise how much the way they pay for financial advice shapes the actual advice they receive. As a fixed fee financial planner in Switzerland, I work with expats who want clarity, transparency and a plan built around their life, not their portfolio size. Fixed fee financial advice removes many of the hidden conflicts found in traditional percentage-based models and allows the focus to stay where it belongs: on helping you make better decisions about your future.

A few years ago, I sat down with a couple who had spent most of their careers working internationally.

They had lived in London, Hong Kong and now Switzerland. Over time they had built up a successful life and accumulated a mixture of financial assets along the way: a UK pension, Swiss retirement savings, investments in multiple currencies and a property back in the UK.

On paper, they were in a strong financial position. But their question wasn’t really about investments. It was much simpler.

“Are we actually on track to live the life we want?”

They wanted to understand when work could become optional, whether they might eventually move somewhere warmer, and how all the different pieces of their finances fitted together.

As we talked, another question emerged.

“How do financial advisers actually get paid?”

Like many people, they had never really thought about it before. They assumed the cost of advice was simply part of investing.

But the way financial advisers charge matters more than most people realise. Because in many cases, the way you pay for financial advice can influence the advice you receive.

How Do Financial Advisers Charge In Switzerland?

Most financial advisers still use what’s known as an ‘ad valorem’ fee. That simply means they charge a percentage of the assets they manage, typically each year.

A fee of around 1% annually is common.

However, once you include platform charges, product costs and fund management fees, the total cost of investing can be significantly higher. Research in the UK suggests the average all-in cost of advice and investment management is around 1.89% per year.

While Switzerland does not publish identical industry data, in practice the overall cost here is often similar or higher, particularly when discretionary portfolio management or structured investment solutions are involved.

At first glance, percentages don’t sound particularly significant. But the picture becomes clearer when you convert them into actual money.

Fixed Fee Financial Planner vs Percentage Fees: What’s the Difference?

Imagine two investors receiving exactly the same financial planning service.

Investor A	Investor B
Portfolio value: £400,000	Portfolio value: £2,000,000
A 1% annual advice fee equals:	Same adviser. Same Service. (1% annually)
£4,000 per year	But the annual fee becomes:  £20,000 per year
Over 20 years:	Over 20 years:
£80,000 in advice fees	£400,000 in advice fees

This raises an obvious question.

Is the adviser really doing five times more work for the larger portfolio? In most cases, the answer is no. The planning process, conversations and advice are usually very similar. The only real difference is the size of the investment account.

What Percentage-Based Financial Advice Really Costs

Percentage-based fees also compound over time. As investments grow, the adviser’s fee grows with them. Yet the amount of work required doesn’t necessarily change.

If an investor reduces their overall costs, across advice, platforms and investment funds, by even 1% per year, the long-term difference can be dramatic.

Over 20 or 30 years, that reduction alone can translate into hundreds of thousands in additional wealth.

The irony is that many investors spend enormous amounts of time worrying about market returns, while paying far less attention to fees; one of the few things they can actually control.

Why Fixed Fee Financial Advice Creates Better Outcomes

Aligned incentives don’t just feel better. They lead to measurably different outcomes. One of the biggest threats to long-term investment success isn’t market crashes or poor investment selection.

It’s investor behaviour.

A long-running study by Morningstar called Mind the Gap found that over the decade to December 2024 investors underperformed the funds they invested in by 1.22% per year.

Not because the investments were poor. But because investors tend to buy after markets rise and sell after markets fall.

Over ten years, that behaviour cost investors roughly 15% of the returns their funds generated.This is where good financial advice becomes incredibly valuable.

A planner who helps clients stay invested during market downturns, avoid chasing short-term trends, and maintain a disciplined long-term strategy can add significant value. Research from Vanguard suggests that advisers following best practices can add up to 3% in net annual value for clients.

Interestingly, the largest contributor to that value isn’t investment selection. It’s behavioural coaching. Helping people make better decisions and stay focused on their long-term goals. But behavioural coaching only works when the adviser’s incentives are aligned with the client’s interests.

Under a percentage-based fee model, advisers are paid based on the size of the investment portfolio they manage. That can unintentionally create conflicts.

For example, a planner charging a percentage of assets may be less enthusiastic about recommendations that reduce the portfolio, such as:

• paying off a mortgage

• gifting money to children

• helping clients spend more confidently in retirement

All of those decisions might be entirely right for the client. But they also reduce the assets from which the adviser’s fee is calculated. A fixed-fee financial planner removes that conflict.

Whether a client decides to invest more, spend more, repay debt or gift money, the adviser’s income remains the same. As a result, the focus stays where it should be; on helping the client make the best decision for their life.

As I often explain to clients:

“Financial planning isn’t about protecting a portfolio. It’s about helping people use their wealth in the most meaningful way possible.”
— David Rosbotham

Financial Planning for Expats in Switzerland

One of the biggest misconceptions about financial advice is that it’s primarily about investment management.

In reality, good financial planning begins somewhere else entirely.

It starts with questions about life.

Questions like:

• When would you like the option to retire?
• What kind of lifestyle do you want?
• Where might you want to live later in life?
• How much flexibility do you want around work?

 

For internationally mobile professionals, these questions often become even more interesting.

How Expats Should Think About Retirement Planning

One thing I’ve noticed working with expats is that once someone has lived abroad, their view of retirement often changes. Instead of seeing retirement as a single destination, many people begin to think about possibilities.

Clients often ask questions such as:

• Should we stay in Switzerland long term?
• Would we eventually return to the UK?
• Could we split our time between different countries?
• What happens to our pensions if we relocate again?

 

Their finances often reflect that international life as well. They might have:

• Swiss Pillar 2 pension savings
• Pillar 3a retirement accounts
• UK or international pensions
• Investment portfolios held in multiple currencies
• Property in another country

 

Financial planning becomes about bringing all of these pieces together into a strategy that supports their future lifestyle.  As I often say to clients:

“Once someone has lived internationally, their thinking around retirement tends to change. It’s rarely about stopping work entirely; it’s about creating the freedom to live where and how you want.”
— David Rosbotham

A Real Example of International Financial Planning

Take James and Laura, a couple in their early forties living in Switzerland. Over the years they had accumulated:

• A Swiss occupational pension
• Regular Pillar 3a contributions
• A UK pension from earlier in their careers
• Investments across several currencies
• A rental property in Manchester.

 

Their biggest question wasn’t about markets or investment funds. It was about their future lifestyle.

Could they stop working in their mid-50s?

Should they keep the UK property long term?

Could they relocate somewhere warmer later in life?

The role of financial planning wasn’t simply to manage their investments. It was to build a flexible strategy that allowed those options to remain open. Once the life plan became clear, the financial decisions became much easier.

The Real Value of a Fixed Fee Financial Planner

At its best, financial advice does far more than manage investments. It helps people make better decisions about their wealth.

That includes decisions about:

• Spending
• Saving
• Investing
• Property
• Retirement
• Lifestyle choices.

 

And the benefits are not purely financial. A recent Vanguard survey of more than 12,000 investors found that 86% of advised clients reported greater peace of mind compared with managing their finances alone.

Investors who work with a financial planner tend to feel more in control, more confident, and far less stressed about their financial future. Because when you trust that your adviser’s recommendations are genuinely aligned with your interests, something important happens.

The uncertainty lifts. And long-term decisions become far easier.

Building a Financial Plan Around Your Life, Not Your Portfolio

Ultimately, financial planning isn’t really about money. It’s about choice.

Choice about:

• When you work
• Where you live
• How you spend your time
• The life you want to build.

 

For expats and internationally mobile professionals, those choices often span multiple countries, currencies and pension systems. A clear and transparent fee structure simply helps ensure the conversation remains focused on what really matters.

Building a life that your wealth is there to support.

Written by David Rosbotham DipPFS | Financial Planner