Become Financially Independent
At Awaken Financial Designs, we offer a unique combination of services, from tax planning to wealth management and wellness coaching, to help you find balance and growth
When it comes to securing your financial future, every dollar counts — including the fees you pay your financial advisor. Yet, countless investors unknowingly pay thousands in hidden or percentage-based fees that silently erode their wealth. The big question is: should you stick with a traditional AUM (Assets Under Management) advisor, or is a flat-fee fiduciary advisor a smarter alternative? In this guide, we’ll break down both models, compare their costs and benefits, and help you make an informed decision that could save you serious money over time.
A flat-fee fiduciary advisor charges a transparent, fixed fee for their services, regardless of your portfolio size. This model eliminates conflicts of interest as your advisor isn’t incentivized to sell you products or manage larger sums just to boost their commission. You pay one clear price for financial planning, investment advice, and portfolio management.
An AUM (Assets Under Management) advisor charges a percentage of your total investable assets. Typically, this fee is around 1% annually. For example, if you have a $1 million portfolio, you could be paying $10,000 every year, even if your portfolio doesn’t significantly grow.
Flat-fee advisors provide clear, upfront pricing. AUM advisors often have hidden or fluctuating fees depending on asset growth.
Flat-fee fiduciary advisors have fewer conflicts of interest because they don’t profit from upselling products or managing larger asset sizes. AUM advisors may be incentivized to gather more of your assets under their control.
Both models can provide comprehensive financial planning, but flat-fee advisors often bundle services like tax strategies, retirement planning, and estate planning into one fixed rate.
Over the long term, AUM fees can drain significant wealth from your portfolio. Flat-fee advisors allow you to keep more of your money invested, compounding returns.
Selecting the right financial advisor could be the difference between reaching your financial goals efficiently or losing thousands in hidden fees. Many investors unknowingly pay high annual costs through percentage-based (AUM) advisors. But is there a smarter, cost-effective option? Let’s dive in.
Fiduciary Certification: Choose advisors with CFP, CFA, or other fiduciary credentials.
Transparent Pricing: Ensure there are no hidden fees.
Unbiased Advice: Work with someone who prioritizes your financial well-being over commissions.
Flat-fee fiduciary advisors are legally bound to act in your best interest. Unlike AUM advisors, they aren’t rewarded for pushing specific investment products. For example, a $1 million portfolio could save approximately $6,000 annually by opting for a $4,000 flat-fee service instead of paying a 1% AUM fee.
A client who transitioned from a 1% AUM advisor to a flat-fee fiduciary advisor saved over $30,000 within five years. These savings were reinvested, resulting in even higher compounded growth.
✅ Regular Check-Ins & Reviews – Periodic meetings (quarterly or annually) to track progress and adjust plans. As important life changes and unknowns occur as well. ✅ Market & Economic Updates – Providing insights on market conditions and how they affect your own financial plans.
✅ Unlimited Access for Financial Questions – Many flat-fee advisors offer email or phone consultations as needed; your not just a number but a person and part of their family.
Since flat-fee fiduciary advisors do not earn AUM fees, or percentage-based fees, their advice is unbiased and solely in the client’s best interest.
Does this mean a standard AUM fee advisor is not a good choice? We personally do not believe that a standard AUM fee advisor is a bad choice necessary. However, we ourselves and several others do believe it is not the best choice for most people. We believe that most people would receive better holistic financial planning from a flat fee fiduciary advisor.
Choosing the right advisor model can shape your financial future. While AUM advisors may seem convenient, flat-fee fiduciary advisors provide clarity, cost-efficiency, and peace of mind. With flat fees, you retain more of your portfolio’s growth and eliminate unnecessary conflicts of interest.
Ready to Save More and Grow Faster?
Book your free consultation today and start building a more secure financial future.
At Awaken Financial Designs, we offer a unique combination of services, from tax planning to wealth management and wellness coaching, to help you find balance and growth
Disclosures
“Investment advisory services offered through Foundations Investment Advisors , LLC (“Foundations”), an SEC registered investment adviser. Awaken Financial Designs LLC is part of Foundations. The views, statements and opinions expressed herein are those of the individual speakers and not necessarily of Foundations or their affiliates. The content provided is for educational purposes only; No investment, legal or tax advice is provided. Always consult with a qualified and licensed professional.”