5.1.1 Fees
Investment advisers are generally paid a percentage of assets under management (AUM). For instance, if a client has an account of $1 million dollars, and the investment adviser is being paid 1% of the assets under management, the adviser would be paid $10,000 annually. Investment advisers typically are paid usually between 1% to 2% of a clients’ assets under management. This arrangement means the adviser gets paid regardless of whether the account goes up or down, but they are paid a little more if the account increases in value and they are paid a little less if the account decreases in value, but they will always be paid. Investment advisers can also be paid a fee for the amount of time they work (hourly fees) or a flat fee for setting up