5 ms·
Percentage of AUM is a common structure for wealth management/financial advisors.
by treyfitty 4y ago
Percentage of AUM is a common structure for wealth management/financial advisors.
- selykg 4y agoFor ongoing management. Yes. That’s NOT what people need most of the time.
- 9991 4y agoThat’s right! Did you know there’s a name for the subset that don’t?
- NovemberWhiskey 4y agoNo, you have that wrong. The opposite of "fee-only" is "commissioned-based" - where you don't have transparency into the cost of the advice (which is free at the point it's offered) because it's kicked-back to the advisor by the funds etc. that are being offered. A fee based on AUM is an entirely standard way of paying a fee-only adviser. ref. https://www.napfa.org/financial-planning/what-is-fee-only-advising https://www.napfa.org/financial-planning/what-is-fee-only-ad...
- rco8786 4y agoYes but that is the opposite of fee-only
- treyfitty 4y agoNot true. There’s AUM fee only, and flat fee only.
- rco8786 4y agoThe term fee-only universally applies to flat fee. Anything AUM based is not fee only.
- NovemberWhiskey 4y agoCould you look at some of the links in this thread applicable to the issue, rather than simply repeating your (minority) opinion as though it's gospel?
- prepend 4y agoIt’s extremely common, but it’s not fee only. Fee only takes an up front fee, sometimes fixed, sometimes hourly. https://www.investopedia.com/articles/investing/102014/feeonly-financial-advisers-what-you-need-know.asp https://www.investopedia.com/articles/investing/102014/feeon...
- NovemberWhiskey 4y agoThe article you're quoting directly contradicts your view, e.g. >Generally, though, most agree, fee-only refers to payment from fixed, flat, hourly, or percentage-based fees.