Well, not sure there's such a thing as an "approved" list..."Fee-only" includes many AUM advisers. In fact many "approved" Boglehead advisers use, or have used in the past, an AUM model: Rick Ferri did for many years until recently, for example. Many Bogleheads were clients of his firm using that model.But there are really good advisors out there. And they can be very beneficial for people who want that "objective" party, or need that sanity check and/or sounding board. However, to truly be "objective", they can't use AUM or "sales" models. Thus the only ones we'd recommend would be "fee only", meaning you pay them directly for their time.
But there are definitely people that used to have an AUM model. As an example, my prior suggestion of Planvision founder formerly worked for company's that used an AUM model. It's not an "unforgivable sin". And it was a very pervasive model for many years.
But I don't think many BH people would recommend or encourage people to remain with someone still charging them under an AUM model, with a potential expection for Vanguards PAS which IIRC is only 0.3% AUM. Maybe $3k per $1M might be reasonable to some people... But to my view, it doesn't cost $6k "more" to manage a $3M portfolio, there isn't 3X the costs, but that's how an AUM model works - even a low cost Vanguard PAS option.
Luckily, we've seen an increase of "fee-only" (hourly or fixed fee) advisors, or those offering alternative models like Planvision. It's good to have choices. Especially choices that leave us with more of our hard earned money.
Statistics: Posted by SnowBog — Thu Oct 03, 2024 9:54 pm — Replies 56 — Views 3064