Are you paying too much for financial advice? Understanding how your financial advisor is compensated is one of the most critical steps in building your wealth. In this video, we break down the four main ways financial advisors charge for their services: Commission, Hourly, Assets Under Management (AUM), and Flat Fee. We explain the pros and cons of each model, potential conflicts of interest, and why some fee structures may be better for certain financial situations. Here's what you'll learn: -Commission: How this legacy model works (e.g., on life insurance or annuities), the potential for a large, compounding difference in returns, and why these advisors aren't necessarily fiduciaries. -Hourly: When a one-time, limited scope project (like college or debt planning) makes this fee worthwhile, and the potential conflict of "scope creep." -Assets Under Management (AUM): Why it's the most common fee today, how the percentage changes with portfolio size, and why the "we do better when you do better" claim can feel like a "wealth tax" as your portfolio grows. -Flat Fee: The clarity and certainty of this subscription-style model, why it's great for a comprehensive financial planning relationship, and a 15-year comparison showing the impact of lower fees on compounding returns. A Fiduciary Discussion: We clarify why most commission-based advisors are not fiduciaries, while Registered Investment Advisors (RIAs) are generally fiduciaries.