Financial Advisors Who Charge an Asset-Based Fee
Is a Financial Advisor Who Charges an Asset-Based Fee Right for You?
If you’ve been researching the cost of financial advisors online, it’s likely you’ve seen several articles talking about financial advisors who charge you a fee based on the percentage of assets they manage on your behalf.
This is the most common way traditional financial advisors charge for their services today. This pricing model is known as the “assets under management “ or “AUM” fee model.
The current industry standard is to charge anywhere from 0.50% – 2% of the assets being managed on an annual basis. Most advisors will fall somewhere around the 1% fee mark and will often charge a discounted rate above certain tiers or asset thresholds.
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