When working with a financial advisor, there are several ways you can pay for the advice you receive. Your advisor should be able to clearly explain how they get paid and how you pay, but that doesn’t always happen. If you’re wondering exactly what’s behind the fees you pay, it may be time to ask some detailed questions or consider switching to another advisor.
An assets-under-management (AUM) fee is a billing method based on the amount of assets you have with a financial advisor. This approach is popular with asset management firms, but other forms of compensation are available. For example, some advisors charge flat fees for service or hourly fees.
On this page, we’ll review how an AUM fee works, explore the pros and cons of this traditional pricing model, and review alternative ways you can pay for financial advice.
Paying your AUM bill doesn’t have to be difficult or confusing. AUM provides various easy and convenient ways to pay your utility bill online by phone by mail or in person. In this comprehensive guide, we will walk through the step-by-step process to pay your AUM bill through the different payment options.
Getting Started with Paying Your AUM Bill
You will need to know your AUM account number before you can pay your bill. This can be found on your monthly utility bill. You will also need the number of bills that are still due. No matter what payment method you choose, having these two things ready will make paying your bill faster and easier.
Also, pay your AUM bill as soon as you get it. This keeps you from having to pay late fees, have your service interrupted, or face any other punishments that come with missing a payment deadline. On-time payments also help you keep a good payment history and good credit.
Now let’s walk through how to pay your AUM bill through the various payment channels:
Paying Online
Paying your AUM bill online is one of the fastest and most convenient options Here are the steps
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Go to the AUM website at https://www.aum-inc.com/.
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At the top of the home page, click on the “Pay Bill” link. This will take you to the online payment portal.
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Enter your AUM account number and the amount you owe for the current billing cycle.
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Select whether you want to make a one-time payment or set up recurring payments.
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Enter your credit card or bank account information. Make sure all the details are correct.
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Review the payment information and click “Submit Payment” to complete the transaction.
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You will receive a confirmation page and email verifying your payment went through.
Paying online is quick, easy and allows you to avoid stamps, checks and envelopes. You can pay on your own time 24/7. Online payments are usually processed immediately, so you don’t have to worry about your payment getting lost or delayed.
Paying by Phone
Also, it’s easy to pay your AUM bill over the phone. Here are the steps:
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Call AUM’s toll-free automated payment line at 1-800-555-9876.
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Follow the voice prompts, entering your account number and amount due when asked.
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Enter your credit card or checking account information using your phone keypad.
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Listen to the payment summary and confirm the details are correct.
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Receive a confirmation number at the end verifying your payment went through.
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Your payment will typically process in 1-2 business days.
Paying by phone is super convenient when you’re on the go or need to make a last minute payment before a deadline. Just make sure to call during AUM’s payment line operating hours.
Paying by Mail
If you prefer to pay your AUM bill by check or money order through the mail, follow these instructions:
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Write your check or money order payable to AUM. Make sure your AUM account number is written clearly on the payment.
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Detach the payment stub from the bottom of your AUM bill and include it with your payment. This ensures your account is properly credited.
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Put your payment and stub in an envelope addressed to:
AUM Payment Center
P.O. Box 12345
City, State 12345 -
Mail your payment at least 5-7 business days before the due date to ensure it arrives on time. Payments received after the due date will incur a late fee.
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Payments by mail take longer to process so make sure to account for additional transit time.
While not as fast as electronic payments, mailing a check gives you a paper trail and avoids credit card fees. Just make sure to get it in the mail well ahead of the due date.
Paying in Person
You can also pay your AUM bill in person at an authorized payment location. Here’s how:
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Bring your monthly AUM bill with you so you have your account number and amount due handy.
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Visit an authorized payment location near you that accepts AUM payments. Common locations include grocery stores, check cashing stores, convenience stores and pharmacies.
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Inform the clerk you need to make an AUM payment. Provide your account number and payment amount.
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Pay with cash, credit/debit card or money order. Get a receipt as proof of payment.
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Your payment will typically process within 1 business day.
Paying in person allows you to avoid mailing delays and gives you a stamped receipt right away. Just search for authorized AUM payment locations in your area to find the most convenient spot.
Payment Arrangements and Assistance
If you are having difficulty paying your AUM bill in full, payment arrangements may be available:
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Payment extensions – You may qualify for extra time to pay your bill without a late fee.
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Payment plans – Set up a monthly installment plan to pay your balance over time. There may be a fee for this.
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Balance forgiveness – If you have a low income, you may qualify for utility debt forgiveness programs.
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Payment assistance – There are government and nonprofit programs that provide utility bill assistance if you are facing financial hardship.
Be sure to contact AUM right away if you anticipate having trouble paying your bill. Their customer service team can explain all your options and help avoid service disruption.
Avoid Late Fees and Disconnection
To recap, below are some tips to avoid late fees and keep your utilities connected with AUM:
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Pay your bill in full and on time each month. Mark your due date on your calendar.
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Enroll in autopay or recurring payments to ensure your bill gets paid automatically each month.
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If you anticipate missing a payment, call AUM immediately to make arrangements.
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If you’re facing financial problems, ask about possible payment assistance programs you may qualify for.
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Be aware of AUM’s policies on late fees, disconnection, reconnection fees and other penalties to motivate yourself to pay on time.
Paying your AUM utility bill doesn’t have to be a chore. Hopefully this guide provided you with a helpful overview of the different payment options as well as tips and strategies for paying your bill successfully each month. Reach out to AUM’s customer service department if you ever have any other questions.
Flat Fees (And Variations)
Flat fees, hourly charges, and other forms of compensation are increasingly popular options. Each method has pros and cons, so make sure you know what you’re giving up by choosing one method over another.
Flat fees might apply to short, one-time financial advice engagements or in-depth projects. Moreover, some financial planners charge flat monthly or annual fees for ongoing advice. And hourly fees are easy to understand since they’re based strictly on the amount of time an advisor works on your finances.
How AUM Fees Work
An AUM fee is a charge based on the account balances your advisor manages. In most cases, the advisor directly manages assets, chooses what to buy and sell, and handles trades on your behalf. You typically do not place trades.
When paying an AUM fee, you’re typically paying for asset management, so the fee structure is directly related to the service provided. However, some advisors include broader services to clients who pay an AUM fee. For instance, they might offer free financial planning or wealth management to clients (this is something I sometimes do). In addition, you might have ongoing access to the advisor or financial planner for non-investment-related questions that arise.
To calculate an AUM fee, you multiply the amount of assets under management by the periodic fee. Calculations differ from firm to firm, so review the firm’s Form ADV (a disclosure that you should receive before investing) to learn exactly how things work. We’ll use a simplified example here, but your situation may be different.
Assumptions:
- Fee amount: 1% annual AUM fee
- Account balance: $100,000
- Billing frequency: Quarterly
If the account has $100,000 in it and the company bills at the end of the quarter, the charge for the quarter could be $250. To arrive at that number, find the periodic fee, which is 0. 25% (the period is one calendar quarter, so the periodic fee is one-quarter of the 1% annual fee). Next, multiply the periodic fee by the billable account balance of $100,000.
If the account remains at the same level for an entire year, you would expect to pay $1,000 in AUM fees throughout that year. Of course, account balances change, so calculations get more complicated in the real world. If your account value rises over time, your fee rises, as well. If your account balance falls, the fee shrinks in sympathy.
Different factors can affect what you pay in AUM fees. For example, the firm might take a snapshot of your account balance at quarter-end (or at the start of the quarter), or you might pay based on an average daily balance calculation. Some firms set minimum and maximum AUM fees. Again, your agreements and disclosures should detail this information.
Direct deduction: In many cases, your advisor deducts AUM fees directly from your accounts. If you have multiple accounts, you can often specify which accounts pay the fees, or the funds can come out on a proportional basis from each account.
Pay by check: You might also be able to pay AUM fees by check. Doing so provides an in-your-face reminder every month or quarter of how much you’re paying. However, it can get cumbersome to pay out-of-pocket over the years.
Other payment methods may be available.
The typical AUM fee is 1% on the first $1 million. Beyond that level, the cost typically drops as your household assets cross certain thresholds.
Fees may be negotiable, and it’s possible to discuss a cap on fees if you have a significant amount to invest.
Which is Best? Comparing The Financial Advisor Service Models AUM vs FLAT FEE – Practice Management
FAQ
What is aum billing?
AUM stands for “assets under management.” This is a way to charge you based on how much money you have with your financial advisor. This approach is popular with asset management firms, but other forms of compensation are available. For example, some advisors charge flat fees for service or hourly fees.
What company is AUM?
AUM Asset Management Ltd. is a results-driven investment management firm founded in 2015 by financier and investor Jean-François de Clermont-Tonnerre with offices in Malta* and London.
What is RealPage utility management?
RealPage provides detailed reporting and analytics that monitor utility usage, expenses, and trends across your properties. Our utility management software automates tracking, reporting, and billing processes, delivering insights that support better decision-making.
Should I pay my Aum utility bill online?
The easiest and fastest way to make sure you pay your AUM utility bill on time every month is to do it online. Some of the best things about paying your AUM utility bill online are: It’s quick—online payments go straight to your account; More payment options – Pay with cards, bank accounts or services like PayPal.
What is Aum’s online bill pay system?
AUM is a utility management company that helps commercial and multifamily building owners keep energy costs and utility bills under control. Their online bill pay portal provides a centralized dashboard where clients can easily: Some key benefits of using AUM’s online bill pay system include:
What is the AUM online bill pay dashboard?
The AUM online bill pay dashboard offers a user-friendly interface to manage your utilities. Here are the key sections: Accounts – Listing of all active utility accounts shows balance, due date, meter status, last bill, and quick access to make a payment. Settings – Update user profile, payment methods, communication preferences.
Can I use my PayPal account balance to pay my Aum Bill?
So while you cannot directly use your PayPal account balance, you do have a couple options: Use your PayPal debit card or PayPal Cash Card to pay your AUM bill. This deducts funds from your PayPal balance. Transfer money from PayPal to your bank account. Then pay your AUM bill via eCheck or AutoPay using your bank account funds.
How do I pay my Aum bill early?
Students attending AUM can begin paying toward their balance early by enrolling in a payment plan. Actual (Recalculating) payment plans are based on actual fees. All payment plans require paying a percentage of the balance as a down payment at enrollment. The down payment is the initial/ first installment. How do I pay my Aum Bill?
What is the AUM installment payment plan?
The AUM Installment Payment Plan helps students and their families who are not able to pay their account in full by registration cancellation date. The installment payment plan is a convenient method for paying tuition and fees in smaller, affordable payments instead of paying in one lump sum.
