The independent | Rod Tyler

Rod Tyler, CFP, RFP, CLU, Fellow of FPSC Owner, Tyler and Associates, Regina

Book size

$110 million; 400 households.

Model

Grid system, which provides full services from dealer. The dealer takes at most 20%. It costs more than desk fees, but the services are worth it.

Compensation

Fees based on a sliding-scale percentage of AUM. Any insurance we sell is on a level commission basis.

Target markets

We have two. My four-member team, all licensed to serve clients, focuses on working Canadian families (T1 filers), while my expertise lies in serving business owner-managers.

My cost structure

After paying the dealer, about 35% of my revenue goes to overhead: building maintenance, staff salaries, marketing, travel, etc. I bought my building 15 years ago, and it’s paid off.

I reinvest approximately 10% of my revenue annually. That includes training, certifications, new technology, recruiting new talent and improving my office building. For example, I’m installing wheelchair access on my building and making my washrooms more accessible. It will cost me about $15,000, but I have clients for whom there is no other option.

With the remaining 55%, it’s split between salary, retained earnings and corporate taxes.

How I do it

We have continuous monthly reporting, where we classify all expenses and forecast future costs.

Lessons learned

I try to invest in technology and people before they become profitable. In the late 1980s, a 1-800 number was a new innovation, and I got one that allowed toll-free calling from anywhere in North America. People asked me how I could afford it, but I wanted to remove a communication barrier for clients.

We will bring in a co-op student who to gather the necessary data to build a platform so we can develop financial plans essentially on demand. If I invest the money now, another student can come in after this one leaves and continue the work.

It costs me close to $2 print and mail out each newsletter to clients, and we do it four times a year to 400 families. My dealer is working on digitization so eventually I’ll save on those costs. We will conduct online seminars

Melissa Shin

Melissa is the editorial director of Advisor.ca and leads Newcom Media Inc.’s group of financial publications. She has been with the team since 2011 and been recognized by PMAC and CFA Society Toronto for her reporting. Reach her at mshin@newcom.ca. You may also call or text 416-847-8038 to provide a confidential tip.