Fee-only advisors normally use the Assets Under Management (AUM) payment arrangement. This involves paying a set percentage of your total assets to the advisor on an annual basis. Depending on the advisor, the costs of AUM can vary widely, from 0.25 percent to more than 2 percent per year. This fee is often negotiable, especially for larger accounts. The AUM does not include trading costs, custodial charges, or any other miscellaneous expenses involved in managing the portfolio.
