It's about incentivizing them to perform. The better the performance the more

Sign up, and you can make all message times appear in your timezone. Sign up

Report problem with this ad

Jan 23, 2017
10:27:02pm

Ash Playmaker

It's about incentivizing them to perform. The better the performance the more

they make. Take bad losses and they get fired.

Report problem with this ad

Ash

Previous username: texmizzoucoug
Bio page: Ash
Joined: Feb 15, 2013
Last login: Jul 19, 2021
Total posts: 14,282 (592 FO)

Report problem with this ad

Messages

Author

Time

Can someone in the financial advising industry share a reasonable justification

1/23/17 9:33pm

Don't want to deal with managing money & takes emotion out of it

Gcouga

1/23/17 9:43pm

Also do it yourself investors who basically set it and forget it see nearly identical returns to those who have accounts

SuperTank

1/23/17 9:47pm

Thats great for investors who can hack volatility, too many panic

Gcouga

1/23/17 9:48pm

But I am wondering why the AUM reimbursement model?

1/23/17 9:50pm

It's better model than hourly or commissions

Gcouga

1/23/17 9:55pm

In that case, an annual or quarterly fee would make more sense, IMO

1/23/17 10:00pm

It's about incentivizing them to perform. The better the performance the more

Ash

1/23/17 10:27pm

In my firm's case, much of the cost comes from middle and back office costs.

Homercles

1/23/17 10:27pm

Thx, that is at the very least a reasonable justification

1/24/17 12:20pm

The company I used to work for tiered the AUM fees. Invest more money

Cougarclaw

1/23/17 10:42pm

Fee-based advisors typically charge the fee for more than just asset management.

wcj99

1/23/17 10:15pm

Report problem with this ad

Posting on CougarBoard

In order to post, you will need to either sign up or log in.

Report problem with this ad