<h1>The Hidden Costs of Using Advisors Who Charge 1% of Assets Under Management</h1>
The industry standard is that many advisors or investment managers charge 1% of your assets annually. But for the same reason casinos take your cash and turn it into little play chips, so you don't really know how much you're losing at the table, those using the AUM model rarely, if ever, talk in any terms other than percentage.

Because 1% just sounds so innocent. That is until you realize that now that your portfolio is worth $3 million, you're paying your advisor $30,000 a year to invest. That's a lot of money!

Also, quick human nature alert—yes, I am being cynical here. If you have two clients, one of whom is paying you $40,000 a year and another of whom is paying you $1,000 a year, who do you think gets the priority?