235 | Funky Fees

A fee on managed assets creates some funky dynamics.

At low asset levels, it undermines the advice and makes a client feel weird.

How can the advice be valuable if it’s free?

How can this be a viable business model if I’m not paying anything?

At high asset levels, it still undermines the advice and overcompensates the advisor.

So I guess accumulating “more” is the only objective?

If it’s the same portfolio, why does managing $1,000,000 cost more than $100,000?

If it feels funky, it probably means there is a better way.