Ask Brad: Is Your 1% Fee Too Cheap?

This is the latest installment of a regular column to answer questions from advisors who are considering transitioning to an RIA model. To see Brad’s previous articles, click here. To submit your question, please email Brad here.

Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

There is no shortage of vocal advisors and observers ready and willing to dive into any conversation about how you should set your fees.

Is the AUM model best? Or is it dying?

Does a retainer or subscription approach better reflect the value you’re providing as an advisor?

Is an hourly approach the most “fiduciary” way to charge?

Show me someone passionately arguing for one of these, and I’ll easily find you another person equally passionate in opposition.

Don’t believe me? You can find heated debates playing out near-daily on social media on this topic.

I am not here to stir that pot.