Most high earners shopping for a financial advisor start with one question: what’s the fee? Kitces’ 2024 research put the median annual subscription fee at $4,500 and the average hourly fee at about $300. An AUM advisor often charges around 1% of managed assets. These are survey benchmarks, not a quote for your household.
If you have equity compensation and a complicated tax picture, the fee alone is too narrow a question. Flat-fee, AUM, and hourly advisors can cost similar amounts in a given year and still deliver different things. One gives you a document to carry out on your own. Another gives you year-round guidance from someone who sees your next vest coming before it shows up on your W-2.
How much does a financial advisor cost? Flat-fee, AUM, and hourly at a glance
The same Kitces research reported an average of $2,886 for financial plans billed hourly. Retainer fees varied widely: the top 10% of firms charged at least $9,200 a year. Compare these benchmarks with the scope in your own quote.
| Fee model | Research benchmark | What to check |
|---|---|---|
| Flat annual retainer | $4,500 median annual subscription | Ongoing planning and advisor access |
| One-time plan | About $2,900 average for plans billed hourly | Deliverables and follow-up included |
| AUM | Often around 1% of managed assets | Tiered rates, planning, and extra fees |
| Hourly | About $300 average per hour | Estimated hours and implementation help |
Fee-only describes how the professional is compensated; it does not set a price or guarantee a particular service list. Your own quote will move with three things:
- Scope of work. Planning alone costs less than planning plus tax filing or investment management.
- Complexity of your finances. Overlapping RSU grants, rental properties, a business, or two filing states all add work.
- The advisor’s experience. Credentials and years in practice affect the rate.
The structural difference between the models matters more than any single number. A flat fee is a set dollar amount tied to the scope of the work. An AUM fee is a percentage of the portfolio the advisor manages, so the dollar amount changes whenever the portfolio does.
Flat fee vs. 1% AUM: what each really costs as your assets grow
A flat fee stays tied to the work. An AUM fee rises automatically whenever your portfolio grows, whether the growth comes from market gains or from new deposits.
Here is the same portfolio under both models, using an illustrative $5,000 flat fee:
| Billed portfolio | Constant 1% AUM fee | Illustrative flat fee |
|---|---|---|
| $500,000 | $5,000 | $5,000 |
| $1,000,000 | $10,000 | $5,000 |
| $2,000,000 | $20,000 | $5,000 |
Many AUM advisors use graduated tiers, so lower rates apply to portions of the portfolio rather than necessarily to the whole balance. Kitces explains the distinction between flat, cliff, and graduated schedules. For example, an effective 0.90% rate on $2 million would cost $18,000 a year, but a quote advertising a 0.90% upper tier may produce a different total. Ask for the blended annual fee in dollars.
To compare a flat fee and an AUM fee fairly, put them in the same units. Turn a flat fee into a percentage by dividing it by your assets: $8,000 ÷ $800,000 = 1%. Turn an AUM fee into dollars by multiplying the rate by your assets. Nino’s AUM vs. flat-fee calculator runs this math over multiple years.
At what portfolio size does a flat fee cost less than 1% AUM?
A flat fee costs less once 1% of your managed portfolio is larger than the flat fee. To find that point, divide the flat fee by the AUM rate. For example, $8,000 ÷ 1% = $800,000. Above $800,000 in billed assets, the AUM advisor costs more every year. Below it, the flat fee costs more.
Two things shift the crossover point:
- A lower AUM rate raises it. At 0.80%, the same $8,000 flat fee breaks even at $1,000,000.
- Assets the AUM advisor doesn’t bill on raise it when you measure against your total portfolio. The formula only counts billed assets. Say $300,000 of a $1,100,000 portfolio sits in a 401(k) the advisor doesn’t manage. The 1% fee then applies to $800,000, which is exactly the crossover.
What your fee actually buys
Once you’ve worked out the cost, the real difference between the models is what they deliver.
Hourly and one-time plans are built for a single moment. You get an answer or a document, and then you carry it out yourself. If an RSU vest or a stock sale changes the right move six months later, the plan doesn’t update on its own.
AUM advice is ongoing and often includes broader planning alongside investment management. The fee model alone does not tell you how much tax or equity work is included. An investment-focused advisor may not track your vesting schedule, your withholding, or how your income changes during the year. That gap matters for equity comp. Employers often withhold federal income tax on RSU income at a 22% supplemental rate, which can be below your actual bracket. Our guide to RSU tax withholding explains how that shortfall builds.
A flat-fee retainer can provide year-round guidance with a predictable annual cost. The scope is defined upfront, and the fee doesn’t rise just because your portfolio did. Scope still varies by firm, so ask whether tax planning, filing, and equity planning are included or billed separately.
How to choose the model when your finances are complex
Three tests will point you to the right fee model:
- How often your situation changes. If your finances are steady, a one-time plan may be enough. Quarterly vesting, job changes, or shifting bonus income call for an ongoing relationship.
- Whether anyone is coordinating tax and investment decisions. With an investment-only advisor, equity and tax moves can go unmanaged between filings. That’s often when a sale or a vest creates a bill no one planned for.
- What you keep after fees over 10 to 20 years. A percentage that grows with your assets can quietly outgrow a flat fee even when the service stays the same. Compare both the fees paid and the growth those dollars could have earned, using the same return assumptions and service scope for each model.
The right model is the one that matches how complex and active your financial life is, not just the one with the lowest number. If you’re comparing flat-fee memberships directly, our Facet alternatives comparison shows how scope and filing differ by plan. For high earners whose main question is taxes, see tax strategies for high-income W-2 employees.
How Nino helps coordinate proactive planning under a flat fee
The service agreement behind your fee should say who coordinates tax and investment decisions during the year, and who carries out the work.
Most high earners have a split setup. An investment-only advisor tracks the portfolio but not equity vesting or the tax picture. A CPA sees the return after year-end, when the vest, the sale, and the withholding gap have already happened. Each one is doing their job, but nobody connects the two.
Nino closes that gap with a CPA and Financial Planner team working from one plan, for a flat annual fee rather than a percentage of your assets. The team models a vest or a sale before it happens, so the tax decision and the investment decision get made together.
Look at your current setup and ask one question: who sees your next vest and your next tax return at the same time? If the answer is no one, compare Nino’s flat-fee plans on the pricing page or book a free consultation. Every Advisor Plan includes a 30-day money-back guarantee.
Advisor fees, AUM tiers, and what a flat fee includes vary by firm and change over time. Before comparing quotes, read each firm’s Form CRS and Form ADV, and consider working with a qualified professional on your situation.