What If Your Prospect Doesn’t Want Comprehensive Wealth Management?

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

Dan’s new book for millennials, Wealthier: The Investing Field Guide for Millennials, is now available on Amazon.

I was a financial advisor before “comprehensive wealth management” was a service most advisors offered. At that time, it made sense to charge based on AUM.

When investing became more commoditized, advisors started offering comprehensive wealth management. They justified the AUM-based fee by touting the benefits of their additional work.

Shouldn’t comprehensive wealth management be charged based on time, effort, and expertise rather than AUM, since the AUM fee is premised on managing assets?

Is there any justification left for an AUM-based fee for managing assets? In many cases, it’s not that difficult or time-consuming.

Is there a marketing opportunity you may be missing?