Should I hire an AUM advisor?
By Team SalaryCalculate · 7/18/2025
Has it ever crossed your mind when you should officially hand over the reins of controlling your financial future to an expert? Have you wondered if there's a magic dollar amount when you finally should say, "This is too much for me. I need someone else to manage my funds!"? If so, you're not alone.
Often, the most perplexing questions stem from real-life circumstances. Like the tale of an individual who recently came into a significant inheritance. Now, this person has reasonably solid financial literacy and has been managing his personal finances for years. However, the vastness of this inheritance has left him pondering if it's time to hire an Assets Under Management (AUM) advisor.
This situation isn't unusual. Many people are leery of paying someone else to manage their funds, especially when they've previously felt short-changed by advisors who did little beyond setting up ETFs or mutual funds.
Navigating Your Financial Future: DIY or Professional Help?
We live in the age of DIY. People are increasingly taking charge of their finances, overseeing their investments, even trading on their own. This can be empowering, but also daunting when dealing with considerable assets.
Is it overconfidence or simply a case of seeing a job better done by oneself? Like our friend, maybe you're getting the feeling that you're biting off more than you can chew.
Understanding AUM Advisors
So, what do AUM advisors do? They take over the management of your portfolio based on the total market value of your assets. The fee they charge is often a percentage of your assets, directly tied to changes in your portfolio's value. Many argue that this creates a strong incentive for them to enhance your portfolio's worth.
But the question remains: When does it make sense to hire an AUM advisor?
When Does it Make Sense to Hire an AUM Advisor?
There's no magic number. Every situation is different, and everyone's comfort level with financial risk varies. However, certain indicators might nudge you toward considering professional help:
- When your portfolio becomes too complicated: If you've diversified to the point it becomes challenging to keep tabs on everything, an AUM advisor could be worth their weight in gold.
- If there's a significant change in your financial situation: Like in the case of our friend who inherited substantial wealth.
- When time becomes a factor: Managing giant assets requires meticulous planning and attention to detail. If you can't devote the necessary time, you might need an AUM advisor.
- If you're new to the investing game or unsure about your financial decisions: Having someone to guide you through your journey offers peace of mind.
Time to Reflect
Ultimately, deciding to hire an AUM advisor is a personal decision. It's about finding that sweet balance between confidence in your financial management skills and recognizing when you might be out of your depth.
It's vital to remember that this doesn't necessarily imply surrendering control. Instead, it's about entrusting professionals to execute your vision, while you maintain the final say on major decisions.
In essence, finding the right advisor isn't just about outsourced expertise, but also partnering with someone who understands your financial goals, respects your apprehensions, and works with you to secure your financial future.
In the end, the magic number isn't about dollars; it's about your comfort, convenience, and conviction. So, reflect on your situation, talk to professionals, weigh the potential risks, and make a decision that brings you peace of mind in your financial journey.
Is there a magic number? Only you can decide.
