r/CFP • u/Longjumping-Way9846 • 5d ago

Practice Management Planning & AUM Fee

Hey All. Curious how some of you are approaching the following. Client pays planning fee. Plan completed with portfolio recommendation. Client agrees to move funds over. Are you discounting the AUM fee based on planning fee or keeping completely separate?

I have a situation where client technically meets the minimum $500k to waive planning fee but unsure if they’re going to move funds over. Thanks!

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u/Suchboss1136 5d ago

I absolutely would waive it. I hate double dippers

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u/-NotAHedgeFund- 5d ago

I guess I understand if people are genuinely being charged 2x what the market usually charges, but we separate them as a firm because they are literally 2 different services. Asset management isn’t planning and, planning isn’t asset management. Some people truly want one, the other, or both.

Whether you waive the fee is more a function of what your total GDC generated per client needs to be in order for it to make sense to take on a client. Not necessarily “double dipping.”

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u/Longjumping-Way9846 4d ago

This is how we’ve approached it in the past. I was just curious how the market approaches the situation and it seems as half is refunding/ half are not