Re:UBS, Wealthfront Cancel $1.4B Deal
by treyfitty on Saturday September 03, 2022 @04:23AM
(#32699884)
Percentage of AUM is a common structure for wealth management/financial advisors.
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Re:UBS, Wealthfront Cancel $1.4B Deal
by prepend on Saturday September 03, 2022 @08:59AM
(#32701460)
It’s extremely common, but it’s not fee only.
Fee only takes an up front fee, sometimes fixed, sometimes hourly.
https://www.investopedia.com/articles/investing/102014/feeon...
Re:UBS, Wealthfront Cancel $1.4B Deal
by NovemberWhiskey on Saturday September 03, 2022 @10:32AM
(#32702216)
The article you're quoting directly contradicts your view, e.g.
>Generally, though, most agree, fee-only refers to payment from fixed, flat, hourly, or percentage-based fees.
That’s right! Did you know there’s a name for the subset that don’t?
Re:UBS, Wealthfront Cancel $1.4B Deal
by NovemberWhiskey on Saturday September 03, 2022 @08:38AM
(#32701272)
No, you have that wrong. The opposite of "fee-only" is "commissioned-based" - where you don't have transparency into the cost of the advice (which is free at the point it's offered) because it's kicked-back to the advisor by the funds etc. that are being offered.
A fee based on AUM is an entirely standard way of paying a fee-only adviser.
ref. https://www.napfa.org/financial-planning/what-is-fee-only-ad...
For ongoing management. Yes. That’s NOT what people need most of the time.
Re:UBS, Wealthfront Cancel $1.4B Deal
by rco8786 on Saturday September 03, 2022 @07:12AM
(#32700697)
Yes but that is the opposite of fee-only
Re:UBS, Wealthfront Cancel $1.4B Deal
by treyfitty on Saturday September 03, 2022 @08:43AM
(#32701315)
Not true. There’s AUM fee only, and flat fee only.
Re:UBS, Wealthfront Cancel $1.4B Deal
by rco8786 on Saturday September 03, 2022 @10:47AM
(#32702343)
The term fee-only universally applies to flat fee. Anything AUM based is not fee only.
Re:UBS, Wealthfront Cancel $1.4B Deal
by NovemberWhiskey on Saturday September 03, 2022 @01:41PM
(#32704197)
Could you look at some of the links in this thread applicable to the issue, rather than simply repeating your (minority) opinion as though it's gospel?