BiggerPockets Money Podcast Debate: AUM vs Flat Fee Which is Better?
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Feb 6, 2026 Ryan Sterling, CEO of NerdWallet Wealth Partners, explains his firm’s AUM approach and planning philosophy. The conversation contrasts flat fees and AUM, explores client psychology around fees, and compares long-term cost and engagement effects. Topics include conflicts of interest, when AUM suits high-net-worth clients, billing transparency, and how fee structure shapes advisor relationships.
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Financial Planning As A Roadmap
- Financial planning is a diagnostic roadmap that links where you are now to where you want to go.
- Ryan Sterling compares it to using highways instead of wandering west on a road trip to reach goals more efficiently.
Use Coaches To Enforce Your Plan
- Hold clients accountable and coach them through financial decisions to keep the plan on track.
- Involve the planner when money decisions arise so choices align with the plan and goals.
Compare Advisor Fee Models First
- Understand the four common monetization models: hourly/project, flat subscription, AUM, and commissions.
- Compare costs and conflicts before hiring an advisor and know which services each model typically covers.