Source of funds - Series 65

[JJ2713]

That's why there is a fee schedule. The more money that you have , the lower the fee. A client with $1mm also typically has much higher expectations of the relationship than a $50k client.

The same claim could also be made for insurance commissions. A $1k annual premium life case takes the same amount of time to issue and underwrite as a $1mm AP life case. Same for a big annuity , or a small one. Should we also standardize insurance commissions regardless of case size?

Finally , I can tell that you are not a financial *** . I would be willing to bet that if you were referred to me off of the street and asked me to look at your portfolio and what your financial life looks like , I might be able to offer a few pointers , but would ultimately tell you that you don't need me , or to pay me for ongoing services.

What your personality type seems to have a hard time grasping is that everyone doesn't catch on to financial problem solving as easily as you do . There are people with much less understanding than you possess , that have much more money and complex situations than you. Just because ongoing fees aren't a good fit for you (which I agree they are not) doesn't mean that they aren't for everyone.

What you also may not realize, is that an invoice to a client for a flat fee has to be submitted and processes just like a new account through RIA compliance. Most of the time I spend more billable time with compliance justifying the flat fee than I do solving the clients concerns.

Insurance companies set commissions for agents, not the agents themselves. Advisors set their own fees.

I'm not a consumer, I''m an agent/advisor. Retirement planning actually.

What YOU don't seem to understand is that I'm not saying anything about some people needing advice. Some people surely do.

However, What I AM saying is that a fee based on a % of AUM is not logical.

It doesn't take more time to advise a client with $500K compared to a client with $1M. Yet, with a % model, while the % may be lower if the client has more money, the fee is still higher for the client with more money. That's not logical.

Now, if the client has several businesses in several countries, children from 3 different women, etc., wants to invest in very alternative investments (especially overseas investments), also invest in managed futures, etc.... then yes, that person needs a higher fee since their case is much more complex than just the average person.

 

[DHK]

Advisors set their own fees.

Advisory firms set their fee schedule - with a little room for individual IARs to change or negotiate it.

Or you own your own RIA.

 

[Stephen]

What YOU don't seem to understand is that I'm not saying anything about some people needing advice. Some people surely do.

"Money management fees are a rip-off anyway. Money-management advisors don't do anything for the client that the client can't do themselves" - JJ2713

Thank you for backing off of your original comment. No need to be hostile about it though.