AUM vs. Fixed-Fee Advisors
The Big Difference Between Assets Under Management & Fixed-Fee Models
It comes down to wealth, trust & transparency.
Unlike the AUM model (assets under management), which ties costs to your portfolio size and often includes hidden fees or conflicts of interest, the fixed-fee approach ensures you pay for expert advice—not product commissions or asset management.
The fixed-fee financial planning model allows for comprehensive, objective guidance across all aspects of your finances and asset classes, empowering you to retain more of your wealth while receiving tailored, client-first solutions.
What’s the Difference?
Let’s Do the Math: Fixed Fees vs. Percentage of Assets Fees
Typical Advisor Fees*:
$0 - $500k of investment assets = 2%
$500k - $1m of investment assets = 1.5%
$1m + of investment assets = 1.0%
Fee ranges are based on industry research and reflect the average for a Financial Advisor using the Assets Under Management (AUM) model.
While these percentages seem small, they add up significantly over time, reducing your overall wealth growth. These fees are tied to portfolio size, meaning your costs increase as your assets grow, regardless of the level of service provided. This structure can include hidden costs and conflicts of interest, making fixed-fee models a more transparent and cost-effective alternative.
Keep More of Your Wealth
This report from the SEC showcases the decrease in your wealth with fees and the assets under management fees. Using a fixed-fee, advise-only advisor can literally save you hundreds of thousands of dollars over the long term.
Transparency and Cost Savings
Clear, Predictable Costs: Know exactly what you’re paying upfront without surprises.
Lower Total Fees: Avoid the compounding costs of AUM fees, saving more of your wealth over time.
No Hidden Costs: Fixed fees eliminate additional charges like product commissions or percentage-based expenses.
Client Benefits Using Fixed-Fee Advising
Better Wealth Retention & Scaling
More Wealth in Your Pocket: By avoiding percentage-based fees, you retain more of your hard-earned money.
Aligned Goals: Your advisor’s compensation is tied to their expertise and service, not the size of your portfolio.
Wider Expertise: Due to our experience within multiple asset classes, our clients can learn how to scale their wealth through different channels.
Unbiased, Client-First Advice
No Conflicts of Interest: Advisors are not incentivized to recommend products or services that generate commissions.
Fiduciary Duty: Your advisor acts solely in your best interest, providing objective and tailored financial guidance.
Comprehensive Asset Planning: Fixed-fee advisors can address all aspects of your finances, including real estate, small businesses, and other non-traditional assets often overlooked by AUM advisors.
Access to Expertise for All Clients
Affordable for All: Fixed fees provide access to expert financial planning regardless of portfolio size.
Inclusive Planning: Suitable for clients at various financial stages, from wealth accumulation to retirement planning.
Financial Confidence: Creating a holistic plan and implementing the strategies with annual check-ins helps our clients remain confident and in-control of their finances through every stage of life.
Keep Your Wealth. Opt for Fixed-Fee Advising.
Book your free consultation to get started!
Higher Standards
CFP®s complete rigorous education, pass a comprehensive exam, and follow strict ethical guidelines.
Comprehensive Expertise
Trained in all aspects of financial planning, including investments, taxes, retirement, and estate planning.
Fiduciary Duty
CFP®s are legally required to act in your best interest, ensuring unbiased, client-focused advice.
No Hidden Agenda
Unlike some financial advisors, CFP®s provide transparent guidance without product sales or commissions.