Pay for Advice, Not Asset Size

Chris Pape, APMA, CEPA | April 30, 2025

Pay for Advice, Not Asset Size

Imagine being charged more for financial advice—not because you needed more guidance, but simply because your account balance went up. That’s the reality many successful professionals face under the legacy “assets under management” (AUM) model. The more you save, the more you’re charged. Not because your situation got more complex. Not because your advisor spent more time with you. Just because you did well.

At Pape Financial, I don’t believe that’s right. And I know I’m not alone.

Many of the professionals I work with, business owners, senior leaders, and entrepreneurs, are already succeeding. What they want now is more control, more clarity, and more strategic advice about the next stage of building wealth. They don’t want to fund a firm’s revenue just because their portfolio grew. They want to pay for value. For expertise. For experience. That’s what I offer, and it’s why I charge by the hour.

The Problem with Asset-Based Fees

Let’s be specific about the problem. If you have $1 million under management and your advisor charges 1% annually, you’re paying $10,000 a year. But that number compounds in more ways than one. If your portfolio grows to $2 million, you’re now paying $20,000 a year—even if you’re not getting twice the service or value. Over 30 years, you could end up paying more than $2.4 million in fees.¹

That’s a tax on success.

The AUM model works extremely well—for advisors. It provides them with a stable, scalable, and growing income stream. But that doesn’t make it right for you. You’re the one taking the risk, making the decisions, and building your financial future. Shouldn’t you control how you pay for advice?

Clarity, Control, and Value

Transparency is more than a buzzword. In fact, 60% of financial services clients rank “clear and understandable fees” among their top priorities when choosing an advisor,² and yet, fee disclosures are often buried in fine print. The actual costs get deducted from your account automatically, so you never quite feel the pain—or see the cumulative impact.

Some advisors try to solve this with subscription pricing. But that creates a different problem. You’re paying whether you actually need advice. It’s predictable—for them. But is it fair for you?

I believe a better model exists. When you work with Pape Financial, you pay for the advice you need when you need it. Nothing more. That means every hour I spend is in service of your goals, not managing your money behind a screen.

Integrated Advice, Not Siloed Services

Another gap I’ve seen in traditional models is the lack of integration. Advisors may focus on investing but ignore the tax implications of your strategy. Or they might help you with cash flow but leave estate planning to someone else. That fragmented approach adds complexity and risk.

At Pape Financial, we bring legal, tax, and financial expertise together. Not because it’s trendy, but because that’s how real wealth is built and preserved. When your investment strategy matches your estate plan, and both account for your business holdings or equity comp, you’re in a much stronger position.³

Experience Matters—Especially When It’s Personal

Most advisors have excellent education and credentials. That’s table stakes. But few have sat in the chair on the client side of the table. I have. I’ve built, operated, and exited a business. I’ve managed my own investments, including private offerings. I’ve worked with attorneys to draft my own estate plan, and with CPAs to structure tax-efficient strategies. My wife and I have planned carefully to ensure our children would be protected if something happened to us.

So, when I advise my clients, it’s not abstract. It’s informed by direct experience—of both the numbers and the life decisions behind them.

The Fiduciary Advantage

It’s also important to understand that not every advisor is legally required to act in your best interest. Broker-dealers operate under a “suitability” standard—they must recommend something suitable, but not necessarily optimal.⁴

Pape Financial is different. We are a fee-only fiduciary. That means I don’t sell products, I don’t take commissions, and I don’t receive kickbacks. My only incentive is your success. That’s the relationship you deserve.

A Smarter Way Forward

The path to high net worth—and beyond—isn’t about picking the right stocks. It’s about having the right strategy, at the right time, with the right person by your side. That’s what I offer at Pape Financial.

Hourly advice is simple, fair, and fully aligned with your goals. It lets us focus on what matters most: growing and protecting your wealth, while giving you total control over how you pay for guidance.

If you're ready to make your financial strategy as intentional as your career, let’s talk. www.papefinancialllc.com/contact.

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Sources:

¹ The Hourly Advisor

² Financial Planning

³ Davidov Law Group

Charles Schwab