Jim DahleEmergency Physician and Financial Educator for Medical Professionals

Commissioned Financial Advisors vs. AUM Financial Advisors

Name: Commissioned Financial Advisors vs. AUM Financial Advisors
Uploaded: 2025-01-31T08:00:26Z
Channel: Jim Dahle
Description: This is a YouTube video titled "Commissioned Financial Advisors vs. AUM Financial Advisors" containing a discussion about the differences between…

31 Jan 2025

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This is a YouTube video titled "Commissioned Financial Advisors vs. AUM Financial Advisors" containing a discussion about the differences between commissioned financial advisors and fee-only advisors who charge assets under management (AUM) fees. The speaker explains the conflicts of interest and quality of advice associated with each payment model. The content was created in January 2025 and focuses on financial advisory fee structures and their implications.

People have gotten confused and blended together representatives with fee only advisors that charge AUM fees, and they both lumped into this category of bad financial advisors. Well, these are my two least favorite ways to pay for financial advice, but one of them is dramatically worse than the other. The problem with taking advice from a representative is you're getting bad advice. It's conflicted advice. It's biased advice. Right? You're being told to buy some crazy universal life policy. Instead of maxing out your 401k or whatever, you're getting these crazy things. It's not real advice. It's just somebody selling stuff to you. The issue with an AUM charging advisor is not bad advice. I mean, they might be giving you bad advice. Lots of financial advisors are surprisingly uneducated, but it's not the model that's somehow causing you to get bad advice.