A Framework for Evaluating Your Advisor
Understanding the difference between advisory models.
Fee structure is one factor. Planning depth, team continuity, and firm longevity matter just as much. This comparison covers all of them.
| Category | Fee Only: AUM | Fee Only: Flat Fee | ||
|---|---|---|---|---|
| Firm Type | Traditional Model · % of Assets AUM-Based Advisors % of Assets Under Management Revenue is a percentage of your portfolio. Your advisor earns more as your balance grows, regardless of the work involved. | Fee-Only · Flat Fee Solo Flat-Fee Advisor Independent Practitioner One advisor running their own practice. Often talented and personally attentive, but entirely dependent on a single person. | Fee-Only · Flat Fee Standardized Flat-Fee Firm Uniform Pricing Model Consistent pricing and a defined process, built for efficiency more than customization. | Complexity-Based · Private · Independent PDS Planning Fee-Only · Flat Fee · Fiduciary |
| How the fee is set | A percentage of your portfolio. Fees rise automatically as your balance grows, whether or not the work changed. |
A flat dollar fee, often loosely tiered. Not formally tied to the scope or complexity of your situation. |
The same fee for most clients, regardless of complexity. Simpler situations may subsidize more demanding ones. |
Scoped to your specific situation. The complexity and work your plan actually requires. You pay for what your plan needs. Not a standard rate applied to everyone. |
| What drives the advice | Revenue grows when assets grow. That can subtly shape advice about debt payoff, outside holdings, or decisions that reduce your investable balance. |
Well-aligned in structure. But when a solo practice hits capacity, service depth can quietly shrink, even with the best intentions. |
Aligned in principle. But the firm’s incentive is efficiency across all clients. Customization costs time the model is not built to absorb. |
The scope and complexity of your plan. Nothing else. We are built to earn long-term relationships, which means giving you the right advice when you need it. What is good for your plan is what drives our work. |
| Planning depth | Often investment-centric. Comprehensive planning may be available, but is not always the focus. Specialized work in tax or estate is frequently referred out. |
Depth depends on one person’s expertise and bandwidth. Specialized work in tax, estate, or business planning may exceed what a generalist can deliver well. |
Consistent and organized, but standardization limits customization. Specialized work is often referred out. |
We cover every area of your financial life: investments, tax, retirement, estate, business, and insurance. We collaborate with outside specialists when your situation calls for it. Integrated across your full picture. |
| Who handles your plan | Varies widely. Often one relationship manager with varying team support. Depth and continuity depend on the firm’s structure and size. |
One advisor, often with admin support. Deeply personal, but your plan’s continuity is tied entirely to one person’s capacity and availability. |
Lean teams built for throughput. You may have a primary advisor, but supporting depth and specialization vary widely. |
A dedicated team, typically three to five advisors per client. CFPs, a CFA, and a CPA among them. Your plan does not depend on one person's availability or tenure. |
| Firm history | The AUM model is the traditional default in wealth management. Firms within it range from multi-generational institutions to practices founded within the last few years. |
Often a newer practice. Talent is real, but limited history means no completed succession and no track record across full market cycles. |
A model gaining traction but still maturing. The ability to weather leadership transitions or market downturns is largely untested. |
Founded in 1985. Multiple generations of leadership. Succession is not theoretical. It has been done, more than once. 40+ years of evidence across advisors, markets, and ownership transitions. |
| Succession & ownership | Increasingly subject to private equity and aggregator acquisitions. The name on the door may stay, while ownership quietly shifts to outside investors. |
Succession plans are often informal or nonexistent. Retirement, illness, or burnout can leave clients without a clear path forward. |
Some structure exists, but growth-oriented firms can become acquisition targets. The brand may stay while ownership shifts to outside investors. |
Third-generation private ownership. A formal long-term plan to remain independent: no outside capital, no corporate parent, no distant shareholders. Decisions are made for clients. Not for a board room. |
| Long-term continuity | Continuity depends on whether the firm stays independent, and whether your advisor relationship survives the next ownership change. |
The personal relationship is the greatest strength, and the greatest risk. Over a 20-year horizon, your plan’s continuity should not depend on one person’s circumstances. |
Continuity depends on ownership stability and whether the model remains viable at scale. Questions most have not yet had to answer. |
Built for continuity. Structured so your relationship and your plan survive any single departure. The firm has outlasted advisors, market cycles, and industry consolidation waves. By design. |
If you are weighing fee models, or the firms behind them, we would welcome the conversation. No pressure, just clarity on whether PDS is the right fit.