For years, I’ve been predicting that the planning profession is eventually going to have to convert its revenue model from AUM to retainer fees — for a lot of good reasons.
People push back when I say that retainers entail fewer conflicts of interest than asset management fees. But I have personal experience with trying to hire an adviser, only to have this well-respected professional immediately bury his nose in my portfolio statements. Every time I would try to redirect his attention to my financial planning questions, he would guide the conversation back to the importance of having him manage my assets. I’ve always thought it was interesting that consumers who hire AUM-compensated planners just happen to always need that planner to also manage his or her retirement account.
Register or login for access to this item and much more
All Financial Planning content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access