Financial advisor fee models are a spicy debate.

There's no perfect structure - the best fit depends on advisor and client preferences.

We chose the flat fee model.

Here are a few misconceptions I see over and over:

1. "Flat fees aren't profitable."

Before we stopped accepting new clients, our minimum fee was $15K/yr.

If you can't run a profitable business at that revenue level... you've got serious issues with your expenses.

2. "Flat fees never go up."

Fees should increase over time. Not in lockstep with market growth, but at least with inflation.

3. "Flat fee advisors don't manage assets."

Many of us run full discretionary portfolios. Rebalancing, tax-loss harvesting, Roth conversions, the works. The fee structure says nothing about the service.

4. "Flat fee is for discount advisors."

We're more expensive than 1% for some clients and less expensive for others. The cost is determined by our services and expertise - not portfolio size.

Choosing flat fees from the start turned out to be a fantastic decision for our firm. Not because it's the "right" choice, but because it's ideal for how we work and who we serve.

What else do you want to know about running a flat fee firm?