A growing number of financial advisors are abandoning traditional asset minimums in favor of more flexible fee structures. As reported by Financial Planning, advisors increasingly view minimum thresholds as barriers that limit access to advice and restrict business development opportunities.
Financial Planning reports that some advisors have turned to alternative pricing models, including project-based fees and hourly billing, which allow them to serve clients who may not yet have significant investable assets. This approach removes the need to reject otherwise promising clients based solely on account size.
Survey data cited by Financial Planning reflects this trend. Nearly half of advisors report that they either never implemented asset minimums or have eliminated them altogether. While the traditional one percent of assets under management fee remains common, advisors now rely more frequently on flat fees, subscription-style pricing, or one-time planning engagements.
Some firms continue to incorporate structured pricing for ongoing services. For example, certain advisors maintain minimum annual fees for discretionary asset management, even if they do not impose asset-based entry requirements. Others focus on advice-only relationships, providing financial plans and recommendations without taking custody of client assets.
As Financial Planning reports, advisors increasingly view this model as a way to align their services more closely with client needs while expanding access to financial planning.
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