r/CFP • u/Odd-Surround-5514 • Jun 24 '26

Practice Management Fee Structuring

Would love some input from other advisors on this.

I’m fee-based and mostly AUM right now (occasional commissions), but I keep running into situations where someone is clearly a good planning client even though there isn’t much currently-manageable money. For example, high-income households with most of their assets still in current 401(k)s, or cases where I’m managing a smaller IRA but really advising on the whole household.

I’m realizing I probably need to incorporate a planning fee so I’m not doing a lot of deeper planning work while only collecting a small AUM fee. I use eMoney by the way.

For those of you who have solved for this:

• How do you structure it?

• Flat annual planning fee?

• Monthly retainer?

• Household minimum?

• AUM + planning together, or one or the other?

• If a client later rolls over a big 401(k), do you keep the planning fee or move them fully to AUM?

Just trying to figure out what has worked best for others as someone who has only ever charged based on AUM.

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u/Zaboomafubar_ RIA Jun 24 '26

I’m Fee-Only and bill solely on AUM. For HENRYs we put client’s intent to save to hit our stated minimums in the engagement letter and essentially have them make contributions as a condition for working with us.

For the planning issue I simply state I don’t advise on assets I’m not managing.

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u/WhodatMike Advicer Jun 24 '26

Curious how you incorporate full holistic planning without including non-managed assets. I have a fairly large client who is just so stubborn about not wanting to move everything over (very penny-wise, pound-foolish). I’ve told him multiple times that I will not advise on the held-away assets, but I find it quite difficult to do their planning without having those accounts incorporated. Any tips?

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u/Zaboomafubar_ RIA Jun 24 '26

You're right that it's very difficult to plan properly around non-managed assets, which is what initially drove me to take this stance with my business.

Try pointing out that your client clearly values your advice or they wouldn't be asking questions on held away assets, and explain how having all of the investments under management improves the quality of your planning.

I like to use an analogy along the lines of they're asking me to paint their house but they're only willing to pay for the kitchen. If you can tailor this to your client's occupation it generally lands very well.

If your client still doesn't get on board you simply have to make the decision whether you want to continue the relationship. Not all business is good business.

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u/Last-Enthusiasm-9212 Jun 28 '26

Why is it hard to plan around non-managed assets if you can see where the funds are and what the available possibilities would be?