On $2 million, a flat 1% costs $20,000 a year. Many firms lower the rate above $1 million: with 1% on the first $1 million and 0.75% on the rest, you’d pay $17,500, an effective rate of about 0.88%. A fee-only planner charging the median flat fee costs $4,500 a year.
The options at $2 million
| How you pay | Year one | Over 10 years | Over 20 years |
|---|---|---|---|
| 1% on everything | $20,000 | about $240,000 | about $596,000 |
| Tiered: 1% on the first $1M, 0.75% after (example) | $17,500 | about $206,000 | about $488,000 |
| Flat planning fee (median) | $4,500 | $45,000 | $90,000 |
| Flat fee, top of the middle half | $7,200 | $72,000 | $144,000 |
Assumes 5% annual growth before fees. The tier schedule is an example, not a published median: firms set their own breakpoints. Flat-fee medians are what fee-only firms publish on their own websites; more complex households often pay toward the top of the range.
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 | Tiered example | $4,500 flat fee |
|---|---|---|---|---|
| 0 | $2,000,000 | $2,000,000 | $2,000,000 | $2,000,000 |
| 5 | $2,552,563 | $2,433,306 | $2,449,085 | $2,527,698 |
| 10 | $3,257,789 | $2,960,489 | $3,002,063 | $3,201,189 |
| 15 | $4,157,856 | $3,601,887 | $3,686,410 | $4,060,753 |
| 20 | $5,306,595 | $4,382,246 | $4,539,231 | $5,157,799 |
At $2 million, how a firm charges matters more than which firm you pick. The difference between a flat 1% and a flat planning fee over 20 years is about $776,000 in ending value under these assumptions.
When a percentage fee makes sense at $2 million
- You want full investment management, including tax-aware withdrawals across accounts.
- You’re coordinating an estate plan, gifts to family or charitable giving.
- The firm offers breakpoints, so your rate falls as you grow.
When a flat fee makes sense
- You’re comfortable with a simple portfolio, or will pay separately for low-cost management.
- Your main needs are planning decisions rather than ongoing trading.
- You want a cost that doesn’t rise with the market.
What a fee-only advisor would look at first
At $2 million, taxes and estate planning start to outweigh investment choices:
- Tax-aware withdrawals across taxable, pre-tax and Roth accounts
- Required minimum distributions, and whether to reduce them before they start
- Beneficiaries, a will and possibly a trust, kept in step with your accounts
- Charitable giving, including giving appreciated stock or using a donor-advised fund
What to ask
- What’s your fee schedule, and what’s my blended rate at $2 million?
- Would you quote a flat annual fee for my situation?
- What do fund, platform and custody fees add?
- Is there any way you or your firm earn money besides my fee?
Compare other amounts
$500,000 · $1 million · $3 million · $5 million · or use the fee calculator. Browse advisors for retirees or flat-fee advisors.