On $5 million, a flat 1% costs $50,000 a year. Most firms that charge a percentage lower the rate on larger balances: with 1% on the first $1 million, 0.75% on the next $2 million and 0.5% above $3 million, you’d pay $35,000, an effective rate of 0.70%. Some fee-only firms charge a flat retainer instead.
The options at $5 million
| How you pay | Year one | Over 10 years | Over 20 years |
|---|---|---|---|
| 1% on everything | $50,000 | about $600,000 | about $1,489,000 |
| Tiered example (1% / 0.75% / 0.5%) | $35,000 | about $405,000 | about $972,000 |
| 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, and some go lower. The flat figure is the top of the middle half of what fee-only firms publish; households at this level with businesses, trusts or several properties often pay more than that for planning, so treat it as a floor, not a quote.
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 |
|---|---|---|---|
| 0 | $5,000,000 | $5,000,000 | $5,000,000 |
| 5 | $6,381,408 | $6,083,265 | $6,176,203 |
| 10 | $8,144,473 | $7,401,221 | $7,641,965 |
| 15 | $10,394,641 | $9,004,718 | $9,468,572 |
| 20 | $13,266,489 | $10,955,616 | $11,744,856 |
Under these assumptions, the tiered example leaves you about $789,000 more after 20 years than a flat 1% does. At this size, a quarter of a point is real money.
What you should get at this level
- Year-round tax planning, including timing of gains, Roth conversions and charitable giving
- Estate planning coordination: trusts, gifting, beneficiary designations, family meetings
- Help with concentrated stock, a business sale or real estate
- A team you can reach, often including a CPA or estate specialist
- Investment management built around taxes, not just returns
Browse advisors for ultra-high-net-worth families or family wealth transfer specialists.
Percentage vs retainer at $5 million
A percentage fee ties the advisor’s pay to your balance. A flat retainer ties it to the work. At $5 million, a retainer can cost less, but get a precise quote for your situation and confirm what it covers. Either way, a fee-only advisor is paid only by you.
What a fee-only advisor would look at first
- Your total cost, in dollars, across advisory, fund, custody and any other fees
- Estate and gifting strategy, including how assets pass to the next generation
- Tax planning across years, especially around a business sale, a large gain or retirement
- Who else is involved: your CPA, estate attorney and insurance advisor, and who coordinates them
What to ask
- What’s your full fee schedule, and my blended rate in dollars?
- Would you quote a flat retainer?
- Who’s on my team, and what does each person do?
- What do fund, custody and platform fees add?
- Is there any way you or your firm earn money besides my fee?
Compare other amounts
$500,000 · $1 million · $2 million · $3 million · or use the fee calculator.