Financial Vitals - Second Opinion On AUM Financial Advisor
Financial Residency · Daniel Wrenne
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Show Notes
On this episode, Daniel addresses common questions from potential and new clients regarding financial advisors, focusing on the AUM (Assets Under Management) model. He explains that AUM advisors charge a percentage (typically 1%) of the assets they manage, highlighting the potential impact on fees as clients' balances grow.
Daniel discusses issues related to low attention for small accounts, minimum account size requirements, and potential conflicts of interest, such as the disincentive to recommend reducing balances or advising against additional savings.
He emphasizes the importance of understanding the fee structure, potential conflicts, and the character of the advisor when considering the AUM model.
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