Debate: AUM vs Flat Fee Which is Better? скачать в хорошем качестве

Debate: AUM vs Flat Fee Which is Better?

Episode #717 ~~~ Subscribe to our Weekly Newsletter: www.biggerpocketsmoney.com ~~~ Want to be a guest on the show? Apply here: https://biggerpocketsmoney.com/contact/ ~~~ Get 50% Off Your First Year of Monarch by using code ‘Pockets’: https://www.monarchmoney.com/ ~~~ Follow BiggerPockets Money on Social: Facebook:   / bpmoney   Instagram:   / biggerpocketsmoney   ~~~ Connect with Ryan Sterling: LinkedIn:   / theryansterling   NerdWallet Wealth Partners: https://nerdwalletwealthpartners.com?... ~~~ In this episode of the BiggerPockets Money podcast, Mindy Jensen and Scott Trench dive into the nuanced world of financial planner compensation structures. They bring on Ryan Sterling, CEO of NerdWallet Wealth Partners, to explore the pros and cons of AUM versus flat fee models, addressing common concerns and misconceptions. Whether you're considering hiring a financial advisor or just curious about how fees impact your wealth-building journey, this episode offers valuable insights and industry perspectives. This Episode Covers: ~ The differences between AUM and flat fee financial planning models ~ How transparency in fee disclosures influences client trust ~ The conflicts of interest inherent in commission-based versus fee-only models ~ The psychological and behavioral impact of fee structures on client engagement ~ Cost comparisons over time: flat fees versus AUM fees for various portfolio sizes ~ The importance of credentials like CFP and what to watch for in advisors ~ How investment strategies and access to sophisticated vehicles vary by fee model ~ Industry evolution: fee compression and rise of flat fee advisory firms ~ When AUM might be the best option, especially for high-net-worth clients ~ Practical considerations: fee transparency, long-term relationships, and client trust NerdWallet Wealth Partners, LLC is an SEC-registered investment adviser. Registration does not imply a certain level of skill or training and nothing contained herein should be construed as investment advice. NerdWallet Wealth Partners does not guarantee investment results and does not provide tax or legal advice. Timestamps: 00:00 AUM Versus Flat Fee 02:17 Defense of the AUM model 03:44 Financial Planning Explained 09:28 The variability and cost structure of AUM fees 16:17 How AUM fee works in practice and transparency benefits 20:01 Common concerns with AUM: costs, conflicts, and transparency 21:51 Cost comparisons: flat fee versus AUM over decades 25:49 Client outcomes, behavioral factors, and long-term engagement 34:01 Industry conflicts and incentives under different fee structures 37:05 Strategic client scenarios where AUM may be favorable 55:38 Connect with Ryan Sterling