Which proposal costs less for the stated year?
Two fictional providers price the same $600,000 account. A charges 1.00% advice plus 0.15% product cost. B charges $3,000 planning, 0.25% platform and 0.15% product cost.
The question
Naomi Ruiz is a fictional 47-year-old resident of New Jersey, United States. Her spouse may receive a UK job offer in 18 months; no move is decided. This is an interview practice packet, not a plan for a real person.
| Value | |
|---|---|
| Account base (USD) | 600000 |
| A advice percent | 1 |
| A product percent | 0.15 |
| B planning fee (USD) | 3000 |
| B platform percent | 0.25 |
| B product percent | 0.15 |
Invented prices. Assume these charges apply for the full year, with the account base fixed. No tax, transactions, tiers or performance fees.
“Give your next question or action, and explain why.”
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A strong answer, step by step
Open each step in turn. This is one strong answer, not the only one.
Step 1: Use one base and period
What would you do here? Open the move you’d make.
Convert A to dollars
The strong move. Percentages must be applied to the stated account value.
Compare 1.15 with 3,000
Tempting, but it misses something. A percentage and a dollar amount cannot be compared until the base and period match.
See how a strong candidate says it
“A costs $6,000 plus $900, or $6,900 for the year.”
Why it works: Percentages must be applied to the stated account value.
Step 2: Include each charge
What would you do here? Open the move you’d make.
Add every stated charge
The strong move. A fixed charge and two percentage charges all count.
Ignore the platform fee
Tempting, but it misses something. The platform charge adds $1,500 on the stated $600,000 account.
See how a strong candidate says it
“B costs $3,000 plus $1,500 plus $900, or $5,400 for the year.”
Why it works: A fixed charge and two percentage charges all count.
Step 3: Compare service
What would you do here? Open the move you’d make.
Ask about scope and frequency
The strong move. A lower price does not establish comparable service.
Choose B on cost alone
Tempting, but it misses something. The lower fee does not show whether the planning and ongoing services are equivalent.
See how a strong candidate says it
“B is $1,500 lower on these assumptions. Is its planning charge recurring, and what does each proposal include?”
Why it works: A lower price does not establish comparable service.
Step 4: Explain the relationship
What would you do here? Open the move you’d make.
Clarify service and conflicts
The strong move. The agreement matters to the service received.
Assume all accounts are discretionary
Tempting, but it misses something. An account is not automatically discretionary. The service agreement sets the authority.
See how a strong candidate says it
“For this US case I would review the relationship summary, service agreement, costs and conflicts, and clarify when the firm acts as broker or adviser.”
Why it works: The agreement matters to the service received.
The answer, in short
- Decision
- B is $1,500 less for the stated year.
- Because
- That calculation uses identical account value and all listed charges.
- What would change it
- A different period, fee base, service scope or omitted charge could change the comparison.
Common traps
- A percentage and a dollar amount cannot be compared until the base and period match.
Check your answer
- I used a $600,000 base.
- I included fixed and percentage fees.
- I stated the year assumption.
- I asked about service and conflicts.
Last reviewed Nov 10, 2026