Why I Left the AUM Model to Start an Advice-Only Planning Firm.

After years in the AUM (assets under management) world, I decided to take a different path—one that aligns more closely with how I believe financial advice should be delivered. I launched an advice-only, hourly financial planning firm to provide truly objective guidance, free from asset minimums, product sales, or hidden incentives. 

The traditional AUM model works for many, but I saw firsthand how it often left people underserved—those who didn’t meet asset minimums, DIY investors who just needed a second opinion, or people who simply didn’t want to hand over their portfolio—just solid advice. 

Most advisors today build portfolios using low-cost, passive investments, which work best when simply bought and held for the long run. If that’s the case, do you really need to keep paying a percentage of your assets (i.e., AUM fees) for ongoing management—forever? Many investors don’t need their portfolios actively managed; they just need a solid plan, good behavioral coaching, and occasional check-ins to stay on track. 

Beyond that, AUM pricing simply isn’t fair to clients. Managing $2 million isn’t twice the work of managing $1 million, yet the person with $2 million pays nearly double the fees. Why should the cost of advice be tied to portfolio size rather than the actual work involved? With an hourly, advice-only approach, clients pay for the advice they need, when they need it—nothing more, nothing less. 

Lastly, I believe good financial advice should teach independence and empower people, not create unnecessary reliance.  The goal of the advice-only model is to teach investors to manage their finances independently—to create financial freedom. The AUM model, on the other hand, perpetuates lifelong dependence. 

With this approach, I can serve clients from all financial backgrounds and focus solely on what’s best for them. Whether it’s creating lifetime retirement income, minimizing taxes, reviewing portfolios, or simply answering financial questions without a long-term commitment, my goal is to offer practical, unbiased advice that helps people make confident financial decisions.