The Wealthtender Guide to

Financial Advisors Who Charge an Asset-Based Fee

By 
Brian Thorp
Brian Thorp is the founder and CEO of Wealthtender and Editor-in-Chief. Prior to founding Wealthtender, Brian spent nearly 22 years in multiple leadership roles at Invesco. With over 25 years in the financial services industry, Brian is applying his experience and passion at Wealthtender to help more people enjoy life with less money stress.

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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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This means if you deposit $500,000 with a financial advisor, at a 1% fee, they will charge you $5,000 annually to handle your investments. Or, if they charge 1% on the first $250,000 of your assets they manage and .75% for assets above $250,000, your annual cost for a $500,000 portfolio would be $4,375 ($2,500 + $1,875).

While the price you pay to a financial advisor under the AUM fee model is calculated based upon the assets they manage for you, you will likely receive additional services such as the development of a financial plan for no additional cost.

This model is a generally accepted industry standard, especially for those investing for retirement. This fee pays the advisor to invest your money for you based on your risk tolerance, goals, timelines and other factors of your financial plan.

Finding a full-service advisor who will manage your funds for 1% or less is generally considered attractive, while paying significantly more may cost you a large portion of your potential returns over time.

Should I Hire a Financial Advisor Who Charges an Asset-Based Fee?

If you want a full-service advisor with no hidden fees, finding a good fee-only advisor who charges based on AUM may be a good fit.

Learn Different Ways You Can Pay for a Financial Advisor

How To Find The Best Asset-Based Financial Advisor For You

Simply scroll down to get to know financial advisors featured on Wealthtender who offer financial planning and investing services for an asset-based fee. Click to view their full profile to learn more about each financial advisor and if they are a good fir for your individual needs.

Are You an Asset-Based Financial Advisor?

👋 Hi there! We’re excited to help more people understand the benefits of working with financial advisors who offer asset-based pricing. And we want to help connect people to the best financial advisors for their individual needs. If you offer asset-based services, we encourage you to join our growing community of financial advisors featured on Wealthtender so we can add you to this guide soon. Click here to learn more and get started.

About the Author
A headshot of Brian Thorp, the founder and CEO of Wealthtender

About the Author

Brian Thorp

Brian is CEO and founder of Wealthtender and Editor-in-Chief. He and his wife live in Austin, Texas. With over 25 years in the financial services industry, Brian is applying his experience and passion at Wealthtender to help more people enjoy life with less money stress. Learn More about Brian

Wealthtender® is a trusted, independent financial directory and educational resource governed by our strict Editorial Policy, Integrity Standards, and Terms of Use. While we receive compensation from featured professionals (a natural conflict of interest), we always operate with integrity and transparency to earn your trust. Wealthtender is not a client of these providers. ➡️ Find a Local Advisor | 🎯 Find a Specialist Advisor

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