Advisor Fee Models Explained
Before choosing a trusted financial advisor, understand how fee models affect long-term outcomes.
| Model | How it works | Best fit |
|---|---|---|
| AUM | Percentage of managed assets | Ongoing portfolio management |
| Hourly | Pay per planning session | Targeted advice needs |
| Flat Fee | Fixed project or annual retainer | Comprehensive planning |
| Commission | Compensation through products sold | Specific product transactions |
Checklist: ask total annual cost, conflict disclosures, and how planning scope changes by fee model.
Next steps: Trusted Advisor Hub | Advisor Selection Checklist