Charging clients fees based on planning rather than AUM works ‘beautifully’ for advisor
Although AUM fees still dominate, other models — such as planning, subscription, monthly and hourly fees — are gaining traction, according to IN's goRIA panelists.
Carolyn McClanahan charged her clients a fee based on their assets under management when she started her investment advisory practice in 2004. Three years later, she switched to fees based on the financial planning she does for them and she hasn't looked back.
McClanahan changed her compensation
Learn more about reprints and licensing for this article.