A financial advisor may charge a percentage of your investments, a flat annual fee, an hourly rate, or a project fee. A 1% annual fee on $1 million is $10,000 a year; a $4,000 retainer is $4,000 before extras. The useful comparison is the total dollar cost for the same work. A cheaper quote can include less help.
Turn each quote into an annual dollar amount
These figures are illustrations, not market averages or promises of what a particular firm charges.
| Fee model | Example quote | Cost under that assumption |
|---|---|---|
| Assets under management (AUM) | 1% of a $1 million managed balance | $10,000 per year |
| Flat annual retainer | $4,000 for a year of planning | $4,000 per year |
| Hourly | $300 per hour for eight hours | $2,400 for the work |
| One-time project | $3,000 for a written plan | $3,000, plus later work |
Annualize monthly quotes: $350 per month is $4,200 per year. For hourly work, ask for an estimate and what happens if the work exceeds it. A project price should name the deliverable and whether follow-up is included.
For an AUM quote, request the fee in dollars at your actual balance. Some firms apply different rates to different portions of the portfolio; others have minimum annual fees. A headline “starting at” percentage can miss both. Confirm which accounts count toward the bill and how often balances are measured.
When is a flat fee cheaper?
With a constant 1% fee and a $4,000 annual retainer for equivalent services, the simple break-even balance is $400,000: $4,000 ÷ 0.01.
| Managed balance | 1% annual fee | $4,000 retainer | Lower fee in this example |
|---|---|---|---|
| $250,000 | $2,500 | $4,000 | AUM |
| $500,000 | $5,000 | $4,000 | Flat |
| $1 million | $10,000 | $4,000 | Flat |
The $1 million household would pay $6,000 less that year under the flat quote. That is a fee difference, not a promised improvement in returns. Advice quality, included services, and other charges can differ.
Fees paid from investments also leave less money invested for future growth. The fee comparison calculator can illustrate that effect using an assumed return and time horizon. Treat the projection as a scenario, not a forecast.
What costs might be outside the headline fee?
Ask for a total that includes the costs relevant to you:
- Investment costs: fund expense ratios, trading charges, and custody fees.
- Separate professional work: tax preparation, estate documents, or business accounting.
- Extra planning: additional entities, states, household members, or special projects.
- Other compensation: product commissions or referral payments.
Investment expenses may come out of the account or fund rather than appearing on the advisor’s invoice. That still makes them a cost you bear.
Review the firm’s Form ADV and relationship summary, where applicable, alongside the agreement. Ask about anything you cannot reconcile with the quote, including minimums, renewal increases, and cancellation terms.
What are you paying the advisor to do?
Start with the decision you need help making. A retirement plan, an option exercise analysis, and ongoing investment management are different jobs. Send each provider the same short list so the quotes can be compared.
For example: “I need a retirement cash-flow plan, a projection for exercising these stock options, and preparation of our federal and state tax returns. Who does each piece, and what is the total first-year and recurring cost?”
Tax-aware investment advice does not necessarily include a tax projection or a prepared return. A written plan does not necessarily include help carrying it out. Confirm both before signing.
If you mainly want to bring your accounts together and explore questions or projections yourself, consider software first. Nino offers that option, with financial and tax services available when you want a human team to build your plan and help put it into action. The right comparison is the cost of the help you need, not the broadest service package available.