Advisers shift away from AUM fees to better serve clients
Fee-only financial planners are shifting away from charging clients based on a percentage of assets in search of models that are free of conflicts, allow them to serve more clients and pay them for the work they do, not market performance.“
We just feel it makes zero sense to throw in your core competencies for something else that is pretty darn easy to get,” Roy Diliberto, founder of RTD Financial Advisors, said Wednesday during a panel discussion at the spring National Association of Personal Financial Advisors conference in San Diego. “You can get asset management service for a lot less than 1% at lots of other places.
”Since 2002, RTD Financial has charged clients a retainer that is based loosely on assets, but stays set for a number of years so fees won’t swing based on market performance.