How much does a financial advisor cost? Most traditional financial advisors charge an annual fee of 1% of your assets under management (AUM). For a $1 million portfolio, this equals $10,000 per year, and the fee increases as your savings grow. Alternatively, flat-fee financial advisors charge a flat subscription of $2,000 to $9,000 per year regardless of your portfolio size, which can save you six figures in compounding fees over your lifetime.
The four advisor fee models
Financial planning firms bill in four primary ways.
1. Assets under management (AUM)
The legacy model. You pay a set percentage of the investments the advisor manages for you. The median rate is 1% for portfolios up to $1 million. These AUM fees may drop slightly as your portfolio grows, but the dollar amount you pay rises alongside your savings.
2. Flat annual fees (subscription or retainer)
You pay a fixed annual fee for comprehensive wealth management, regardless of net worth. Industry data puts flat fees at roughly $2,500 to $9,200 per year. Because the fee does not increase as assets grow, it tends to cost less as your portfolio gets bigger.
3. Hourly planning fees
You pay an hourly rate (typically $200 to $400) for targeted advice. This setup is ideal for specific questions but is not designed for ongoing management of your investment portfolios. For hands-off, low-cost automated investing, a robo-advisor charges roughly 0.25% instead.
4. One-time project fees
You pay a single upfront fee for a custom financial plan, averaging around $3,000 (ranging from $1,500 to $7,500). You receive a roadmap, but you execute and manage the plan yourself.
The compounding impact of a 1% AUM fee
A 1% annual fee sounds small, but it is deducted from your portfolio each year, reducing the capital left to compound in the market.
| Total portfolio size | Annual 1% fee | 10-year cumulative cost (no growth) |
|---|---|---|
| $250,000 | $2,500 | $25,000+ |
| $500,000 | $5,000 | $50,000+ |
| $1,000,000 | $10,000 | $100,000+ |
| $2,500,000 | $25,000 | $250,000+ |
This projection is conservative: it assumes a flat portfolio, so it does not reflect how fees rise in tandem with market growth.
Flat fee vs. AUM: the cost difference over time
The gap widens as your net worth grows. If your portfolio grows from $500,000 to $1.5 million over ten years:
- Under a 1% AUM model, your annual advisory fee climbs from $5,000 to $15,000.
- Under a flat-fee model set at $4,000, your annual fee stays exactly $4,000.
That cost stability is why many high earners choose flat-fee advisors.
2026 advisor fee comparison
| Advisor type | Average cost (2026) | Fee on $1M portfolio | Tax prep included? |
|---|---|---|---|
| Traditional advisor | ~1% AUM | ~$10,000 / year | Rarely |
| Robo-advisor | ~0.25% AUM | ~$2,500 / year | No |
| Facet | Flat fee ~$2,100 to $8,700 / year | Flat | On higher tiers |
| Range | Flat fee ~$2,950 to $9,950 / year | Flat | On higher tiers |
| Domain Money | Flat fee ~$3,900 to $9,000 / year | Flat | Via partner network |
| Nino | Software from $20/mo; advisor from $3,600/year | Flat | Yes, via in-house CPA |
Questions to ask before hiring an advisor
- Are they a fiduciary? Ensure they are “fee-only” (paid directly by you), not “fee-based” (which allows commissions on products they recommend).
- Is tax filing included? Ask whether they have an in-house CPA team to file your returns, or whether you will pay an external firm.
- Are services comprehensive? Clarify whether the fee covers your full picture (equity compensation, cash flow, estate planning, business advice) or only investment management.
The terms can be confusing: fee-only and fee-based advisors can both charge planning fees, while only one may also receive commissions. Review compensation and conflicts separately from the headline price.
Nino is a flat-fee option that includes an in-house CPA and CFP. Run the AUM vs flat-fee calculator with your own balance and horizon, see how a flat fee compares to 1% AUM on the pricing page, or start from flat-fee CFP and CPA and tax and financial advisor.
Book a demo
If you want help comparing fee models against your own balance and tax situation, book a free 30-minute demo. Every Advisor Plan includes a 30-day money-back guarantee.