On $3 million, a flat 1% costs $30,000 a year. Most firms that charge a percentage lower the rate as balances grow: with 1% on the first $1 million and 0.75% on the next $2 million, you’d pay $25,000, an effective rate of about 0.83%. Fee-only planners who charge a flat fee have a median of $4,500 a year, with most between $2,400 and $7,200.
The options at $3 million
| How you pay | Year one | Over 10 years | Over 20 years |
|---|---|---|---|
| 1% on everything | $30,000 | about $360,000 | about $893,000 |
| Tiered: 1% / 0.75% / 0.5% above $3M (example) | $25,000 | about $282,000 | about $658,000 |
| Flat fee, top of the middle half | $7,200 | $72,000 | $144,000 |
| Flat planning fee (median) | $4,500 | $45,000 | $90,000 |
Assumes 5% annual growth before fees. The tier schedule (1% on the first $1M, 0.75% on the next $2M, 0.5% above $3M) is an example, not a published median. Flat-fee figures are what fee-only firms publish on their own websites; complex households often pay toward the top of the range or above it.
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 | $3,000,000 | $3,000,000 | $3,000,000 | $3,000,000 |
| 5 | $3,828,845 | $3,649,959 | $3,683,839 | $3,803,979 |
| 10 | $4,886,684 | $4,440,733 | $4,536,026 | $4,830,083 |
| 15 | $6,236,785 | $5,402,831 | $5,598,007 | $6,139,681 |
| 20 | $7,959,893 | $6,573,369 | $6,921,428 | $7,811,096 |
Breakpoints matter at this size. Under these assumptions, the tiered example leaves you about $348,000 more after 20 years than a flat 1% does.
What you should get at this level
At $3 million, your needs usually go beyond investing:
- Tax planning across several account types, every year
- Estate planning coordination, gifts to family, charitable strategies
- Retirement income that draws from accounts in the right order
- Help with concentrated stock, a business or real estate
Whatever you pay, it should cover this kind of work, not just a portfolio. Browse estate planning specialists or family wealth transfer advisors.
When a flat fee makes sense
- You want advice and coordination, and are happy with simple, low-cost investments.
- Your situation is complex enough that a percentage fee would be large, but most of your money doesn’t need active management.
Expect a flat fee at this level to sit toward the top of the range, because complex households take more work.
What a fee-only advisor would look at first
- Whether your fee schedule fits your balance, since breakpoints alone can be worth six figures over time
- A tax plan for the next ten years, not just the next return
- How your estate plan and account titles line up
- Concentration: one stock, one property or one business making up a large share of what you own
What to ask
- What’s your fee schedule, and my blended rate in dollars?
- Would you quote a flat fee for my situation?
- What’s included: tax planning, estate coordination, help with my accountant and attorney?
- Is there any way you or your firm earn money besides my fee?
Compare other amounts
$500,000 · $1 million · $2 million · $5 million · or use the fee calculator.