Advisors Increasingly Consider Nontraditional Fees – InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading INN Weekly Newsletter Financial
Topics
    • Life Insurance
    • Annuity News
    • Health/Employee Benefits
    • Property and Casualty
    • Advisor News
    • Washington Wire
    • Regulation News
    • Sponsored Content
    • Webinars
    • Monthly Focus
  • INN Exclusives
  • NewsWires
  • Magazine
  • Free Newsletters
Sign in or register to be an INNsider.
  • INN Exclusives
  • NewsWires
  • Magazine
  • Free Newsletters
  • Insider
  • About
  • Advertise
  • Editorial Staff
  • Contact
  • Newsletters

Get Social

  • Facebook
  • Twitter
  • LinkedIn
Advisor News
INN Weekly Newsletter Financial RSS Get our newsletter
Order Prints
October 25, 2021 INN Weekly Newsletter Financial No comments
Share
Share
Tweet
Email

Advisors Increasingly Consider Nontraditional Fees

By Press Release

October 25, 2021, BOSTON—As investor fee awareness continues to climb, advisors are increasingly considering nontraditional fees to align their service offerings with client demand, according to the latest Cerulli Edge—U.S. Advisor Edition.

During the past decade, investor fee awareness has dramatically increased. While only 35% of investors in 2011 were aware of the fees they were being charged, by 2Q 2020, more than half (55%) of surveyed investors understood how they paid for financial advice. According to the research, Cerulli finds that most households prefer to pay for their advice via a fee (61%) (e.g., asset-based fees, financial planning fees) compared with 39% who prefer commissions. Moreover, nearly one-fifth (17%) prefer to pay for their advice via a retainer fee, and 5% prefer an hourly fee. As a new generation of investors begins to seek financial advice, Cerulli anticipates that investors will look for more nontraditional fee arrangements in line with how they currently pay for other services.

Currently, the most popular nontraditional fees are fees for financial plans, charged by almost one-third of advisors (31%). These present a significant opportunity for planning-centric advisors who want to offer their planning services independently of investment management. Annual or retainer fees and hourly fees are less prevalent, with 13% and 10% of advisors, respectively, implementing each in their practices. “The long-term potential for both fees present valuable opportunities for advisors who want to expand their advice offering to better align with their business development plans and needs of clients,” says Stephen Caruso, analyst at Cerulli.

As the industry continues the push to fee-based advice, Cerulli predicts that a growing group of advisors will move beyond asset-based fees in favor of building practices around nontraditional fees. “While the asset-based fee model may not disappear any time soon, firms should consider nontraditional fees as another avenue for their advisors to reach potential clients or optimize existing relationships,” says Caruso. “Alternative fee structures provide the opportunity to engage more effectively with younger investors—particularly children and inheritors of existing clients.”

 

Older

Why Your Clients’ College-Age Children Need Health Care Directives

Newer

Investors Still Blindsided Despite Doing The Right Things

Advisor News

  • Retirement Savers Remain Confident Despite Short-Term Woes
  • City of Memphis Helps Employees With Financial Wellness Programs
  • IRI CEO: ‘I Am Optimistic for Our Industry’s Future’
  • 2/3 Of Near-Retirees Failed Or Barely Passed A Basic Social Security Quiz
  • Crypto As National Currency? Maybe Not A Good Idea
More Advisor News

Annuity News

  • LibertyMark Freedom Fixed Indexed Annuities Launch
  • Nationwide Adds BNP Paribas Global H-Factor Index To FIA
  • Transamerica Launches Structured Index Advantage Annuity
  • Recommending FIAs: Start With The Client’s Objective
  • NC Man Wins First $5 Million Prize In Scratch-Off Game
Sponsor
More Annuity News

Health/Employee Benefits News

  • EBRI Studies Expanding Pre-Deductible Coverage For Chronic Conditions
  • Most Consumers Choose To Pay Higher LTCi Premiums
  • CMS Creates More User-Friendly Medicare Website
  • Integrity Marketing Group Buys Ritter Insurance Marketing
  • Maine Powerless In Big Fight Between Its Largest Insurer And Hospital
More Health/Employee Benefits News

Life Insurance

  • The 5 Secrets To Retaining Financial Sales Professionals
  • Life Insurance Activity Continues Dip In April But Still Stronger Than 2021, MIB Reports
  • Transamerica Adds Execs To Annuity And Life Insurance Team
  • Northwestern Mutual Invests $5M In Black-Led Financial Institutions
  • Protective Life Closes On AUL Acquisition
More Life Insurance

- Presented By -

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

FEATURED OFFERS

Get Linked INN to your industry Connect with INN on LinkedIn to be first on all the news and insights that matter to your industry.

Press ReleasesAll press releases

  • OneAmerica Commits $1 Million Toward Financial Literacy
  • Transamerica Structured Index Advantage Annuity Offers Investors More Certainty with Upside Growth and Downside Protection
  • Senior Market Sales Creates First-of-Its-Kind Lead Acquisition Platform
  • Growing financial services firm Kuvare opens Des Moines office in East Village, continuing expansion in Iowa
  • BetterLife Selects iPipeline® to Digitally Transform Its Business & Better Serve Future Generations
Add your Press Release >

Topics

  • Life Insurance
  • Annuity News
  • Health/Employee Benefits
  • Property and Casualty
  • Advisor News
  • Washington Wire
  • Regulation News
  • Sponsored Content
  • Webinars
  • Monthly Focus

Top Sections

  • Life Insurance
  • Annuity News
  • Health/Employee Benefits News
  • Property and Casualty News
  • AdvisorNews
  • Washington Wire
  • Insurance Webinars

Our Company

  • About
  • Editorial Staff
  • Magazine
  • Write for INN
  • Advertise
  • Contact

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2022 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • Sitemap
  • AdvisorNews

Sign in with your INNsider Account

Not registered? Become an INNsider.