The Broken Model: Why Traditional Wealth Advisory No Longer Works

Do You Feel Like the Financial Industry Isn’t Working in Your Best Interest?

If you’ve ever questioned whether your financial advisor is truly on your side, you’re not alone. Many investors feel stuck in a system that prioritizes fees over real financial guidance. The traditional wealth advisory model—built on outdated theories and fee structures—often fails the very people it’s supposed to serve.

At Sevey Wealth, we believe it’s time for a change. Let’s take a hard look at why the system is broken and what a better approach looks like.

1. The Myth of the Rational Investor: Why Traditional Advice Fails You

Have you ever made an investment decision based on fear or excitement? Maybe you pulled money out of the market during a downturn or chased a stock because it was skyrocketing. If so, you’re not alone—and yet, traditional financial advisors act as if you should behave like a robot, ignoring every emotional impulse.

This thinking comes from Modern Portfolio Theory (MPT), a decades-old approach that assumes investors will always act rationally. The problem? Human nature doesn’t work that way.

The DALBAR study proves it year after year: real investors underperform the market—not because of bad investments, but because they react emotionally. Another study, Morningstar’s "Mind the Gap," shows that investors consistently earn less than their investments’ stated returns simply because of poor timing decisions.

Yet, many advisors still base their advice on MPT, ignoring the fact that your emotions are a major part of your financial journey. Instead of helping you navigate fear and greed, they hand you a pie chart and expect you to stick to it, no matter what happens in the real world.

At Sevey Wealth, we know your emotions are real, and they matter. That’s why we take an goals based approach to investing—helping you make smart decisions even when the market (and your instincts) are telling you otherwise.

2. The AUM Fee Model: Are You Paying Too Much for Too Little?

Does it feel fair to pay your advisor more just because the market went up? What about when your portfolio shrinks—should they still collect the same percentage of your assets?

For decades, traditional advisors have charged fees based on Assets Under Management (AUM)—typically 1% of your portfolio every year. That might not sound like much, but over time, it adds up to hundreds of thousands of dollars. And what do you really get for it?

• Did your advisor proactively help you avoid costly mistakes?

• Did they sit down with you during a market downturn to calm your nerves?

• Are they truly giving you advice that justifies the fees—or are they just collecting them?

Many investors today are waking up to the fact that the AUM model doesn’t align with their best interests. Advisors make more when you accumulate assets, but what if your real financial priorities aren’t about chasing higher returns? What if you want to retire early, help your kids with college, or give to causes you care about? AUM-based advisors have little incentive to support those goals because they’re focused on growing your portfolio—not your financial well-being.

At Sevey Wealth, we reject the AUM model because we believe advice should be about YOU, not your portfolio size. That’s why we offer a fresh approach that can provide peace of mind knowing that our compensation is not tied to the products we recommend or the size of your portfolio, eliminating any potential conflicts of interest.

Sevey Wealth’s Flat Fee Model: A Better Way to Get Advice

Instead of charging based on how much money you have, Sevey Wealth uses a flat-fee structure that ensures you get quality financial advice without conflicts of interest. Our approach includes:

• Transparent pricing so you know exactly what you’re paying for.

• Unlimited access to guidance that adapts to your life’s changes, not just your investment balance.

• Fiduciary responsibility—we work for YOU, not a brokerage firm or fund company.

With a flat fee, your financial goals—not your portfolio size—determine the advice you receive. This means our focus is on providing the best possible recommendations, whether it’s about investing, tax planning, estate strategies, or major life decisions. Your success is our only priority.

3. The Sales-Driven Nature of Traditional Advisory

Many investors don’t realize that most advisors are salespeople first and fiduciaries second (or not at all).

• Many advisors push certain products—annuities, insurance, mutual funds—not because they’re the best option for you, but because they earn commissions or bonuses for selling them.

• Instead of asking, “Is this truly the best investment for my goals?” traditional advisors often ask, “What can I sell this client today?”

What You Deserve: An advisor who works for YOU, not an investment firm or product manufacturer. At Sevey Wealth, we don’t sell anything—our only job is to give you unbiased, advice-only guidance.

4. Conflicts of Interest Are Everywhere

• Traditional advisors say they have your best interest at heart—but are they really acting as a true fiduciary 100% of the time?

• Many firms offer tiered service levels, where high-net-worth clients get more attention while others get generic, cookie-cutter advice.

• Advisors under the AUM model often hesitate to recommend debt pay down, charitable giving, or large purchases because it reduces the assets they manage (and their fees).

At Sevey Wealth, we believe in transparent, client-first financial advice that works for YOU. No commissions. No conflicts. No hidden fees.

It’s time to break free from the broken model.