Business model of the BAM alliance?

[hedgehog]

(http://www.thebamalliance.com/)

As far as I understand they sell low cost index funds(?). So how do they pay their advisers? Is this a win-win business model for advisers and customers alike?

[smurff]

It's made up of wealth management funds, so wouldn't the standard fees apply?

[hedgehog]

It's made up of wealth management funds, so wouldn't the standard fees apply?

Dan Solin, author of the Smartest series of investment books is some big shot at the BAM Alliance: http://smartestinvestmentbook.com/about.php

He is also a big advocate for low cost index funds. Wealth management funds are... what? Are they different or better? I don't know.

Did I find some kind of a controversy here is Dan advocates low cost index funds on one side but works with higher cost funds(?) - I don't know. Or no controversy here, he just have to make a living?

Whatever the situation is, educate me on the topic.

[Libertarian666]

I believe he used to blog for DFA, which IMO is a snake-oil outfit that has funds with a wonderful track record... that was made up by backtesting.