On $1 million, an advisor charging the median 1% costs $10,000 a year. A fee-only planner charging the median flat fee costs $4,500 a year. At this balance the flat fee is less than half the price in year one, and the gap grows every year your portfolio does.
The options at $1 million
| How you pay | Year one | Over 10 years | Over 20 years |
|---|---|---|---|
| 1% of assets | $10,000 | about $120,000 | about $298,000 |
| 1% with a lower rate above $1M (example) | $10,000 | about $115,000 | about $275,000 |
| Flat planning fee (median) | $4,500 | $45,000 | $90,000 |
| One-time plan (median) | $2,000 once |
Assumes 5% annual growth before fees. The tiered example charges 1% on the first $1 million and 0.75% on the next $2 million, so it only differs once the balance grows past $1 million. Fee medians are what fee-only firms publish on their own websites.
What it does to your balance
Ending balance by how you pay. Hover or tap the chart for any year.
Source: Wellspent fee report (fee-only firms' published prices); 5% yearly growth before fees
Data
| Year | No advisory fee | 1% of assets | $4,500 flat fee |
|---|---|---|---|
| 0 | $1,000,000 | $1,000,000 | $1,000,000 |
| 5 | $1,276,282 | $1,216,653 | $1,251,416 |
| 10 | $1,628,895 | $1,480,244 | $1,572,294 |
| 15 | $2,078,928 | $1,800,944 | $1,981,825 |
| 20 | $2,653,298 | $2,191,123 | $2,504,501 |
Over 20 years, the difference between 1% and the median flat fee is about $313,000 in ending value under these assumptions. That’s the real price of the choice, not just the yearly invoice.
When 1% makes sense at $1 million
- You want the advisor to run the investments, rebalance and handle tax-loss harvesting.
- You’re retiring soon and need an income plan across several accounts.
- The fee includes ongoing tax planning, estate coordination and quick help when life changes.
If you pay 1%, ask whether the rate drops as your balance grows. Many firms lower it above $1 million or $2 million.
When a flat fee makes sense
- You’re comfortable with a simple, low-cost portfolio you manage yourself.
- You mainly want planning: when to retire, how to draw income, how to cut taxes.
- You’d rather your cost not rise just because markets did.
What a fee-only advisor would look at first
At $1 million, most people are within sight of retirement, and the questions change:
- How much you can safely spend, and from which accounts first
- Roth conversions in the years between retiring and claiming Social Security or taking required distributions
- When to claim Social Security, which is one of the largest decisions you’ll make
- Taxes on your investments, including where each holding sits
What to ask
- What’s my blended rate now, and at $1.5 million and $2 million?
- Would you quote a flat fee instead?
- What do I pay in fund and platform fees on top?
- Is there any way you or your firm earn money besides my fee?
Compare other amounts
$500,000 · $2 million · $3 million · $5 million · or use the fee calculator. For context on whether 1% is right for you, read is a 1% advisor fee too much?