To Fee or Not to Fee

Choosing Your Path: Ongoing AUM, DIY, and/or the Hourly Middle Ground?

When it comes to managing your wealth, the most important question isn't "what is the cheapest option?" but rather "what kind of support do I actually need to stay on track?"

The financial industry often tries to force investors into a one-size-fits-all box, but the reality is that your personality, your schedule, and your emotional relationship with money should dictate how you pay for advice.

1. The "Full Service" Path: Ongoing AUM Fees

If you find yourself constantly stressed about market volatility, or if you simply don't have the time or desire to look at a spreadsheet, an ongoing relationship with an Assets Under Management (AUM) advisor might be the right fit.

In this model, you pay a percentage of your portfolio (typically around 1 - 1.5%) for someone to "hold your hand" every step of the way. They regularly review your plan, manage the trades, and—most importantly—act as a behavioral coach to keep you from making emotional mistakes during market crashes. If you need that constant accountability and a professional to take the wheel entirely, the ongoing fee can be a worthwhile investment in your peace of mind.

2. The "Captain of the Ship" Path: Pure DIY

On the other end of the spectrum is the DIY investor. This path is for those who are willing to put in the hours to become educated about asset allocation, tax-loss harvesting, and rebalancing.

To succeed here, you need more than just knowledge; you need a "stomach of steel." You have to be able to review your results regularly without falling victim to FOMO (Fear Of Missing Out) or panic-selling when the headlines get scary. If you have the discipline to stick to a plan without a coach, you can save a fortune in fees over your lifetime. Often it is not what you know that is the issue but rather, its what you know, that isn't so that becomes the issue.

3. The "Hybrid" Path: Hourly Advice for the Educated Investor

Many people find themselves somewhere in between. You might be capable of managing your own trades, but you still want a professional "second opinion" once a year to make sure you haven't missed a major tax strategy or have a gap in your estate plan.

This is where hourly financial planning shines. It’s the perfect middle ground for the investor who:

• Wants to stay in control of their own assets.

• Needs occasional "hand-holding" for complex life transitions (like retirement or buying a home).

• Values expert guidance but doesn't want to pay a permanent, compounding percentage of their net worth for it.

The Bottom Line

Be honest with yourself about your temperament. If you need a partner to manage the day to day stress of investing, an ongoing advisor is a great tool. If you are a self-starter, DIY is a powerful wealth-builder. But if you want the best of both worlds—professional expertise without the permanent "tax" on your assets—paying by the hour is likely your best option, or maybe it's a combination paying a small percentage for asset management and paying an Hourly CFP to double check and to offer an unbiased 2nd opinion.

The goal is a plan you can actually stick to. Whether you do it yourself, hire a full-time coach, or consult an expert by the hour, the best plan is the one that keeps you invested and moving toward your goals.