There is no magic fee that makes advice good. A cheap advisor can still cost you money. An expensive advisor can still be worth it. The question is whether the fee matches the work.
Start with dollars, not percentages
A 1% fee on $500,000 is $5,000. On $4 million, it is $40,000. Same percentage, very different reality. Business owners should always translate the fee into dollars before judging value.
What should be included
At higher complexity, advice should include tax-aware planning, business cash flow, retirement strategy, risk management, CPA coordination, and decision modeling. If you are only getting portfolio management, the fee should reflect that.
When flat fee makes sense
Flat fee planning can align better when your financial complexity lives outside the portfolio. The advisor is paid for planning work, not rewarded only when investable assets grow.
Questions to ask next
- Is 1% too much for a financial advisor?
- Is flat fee financial planning better?
If those questions made you pause, take the 60-second Advisor Scorecard. No fluff. Just a clearer sense of where your advisor relationship stands.
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Related resources
The Hidden Cost of a 1% Financial Advisor
The flagship fee guide: what 1% can cost at $1M, $2M, $5M, and $10M, and what business owners should expect in return.
Do I Need a Financial Advisor Quiz?
A six-question review of fees, tax coordination, communication, and decision support.
Nicky Morong, CFP®, CLU®
The credentialed reviewer behind the educational methodology and accuracy checks.
Financial Advisor for Business Owners
What owner-specific financial planning should actually cover.
1% AUM Cost Calculator
Translate an AUM percentage into annual and multi-year dollars.
Flat Fee vs. AUM for Business Owners
Compare how flat-fee and percentage pricing behave as assets and planning needs change.
Recommended next steps
If this topic raised bigger questions, these pages are the cleanest places to keep going.
- The Hidden Cost of a 1% Financial Advisor — The flagship fee guide: what 1% can cost at $1M, $2M, $5M, and $10M, and what business owners should expect in return.
- Do I Need a Financial Advisor Quiz? — A six-question review of fees, tax coordination, communication, and decision support.
- Nicky Morong, CFP®, CLU® — The credentialed reviewer behind the educational methodology and accuracy checks.
- Financial Advisor for Business Owners — What owner-specific financial planning should actually cover.
- 1% AUM Cost Calculator — Translate an AUM percentage into annual and multi-year dollars.
- Flat Fee vs. AUM for Business Owners — Compare how flat-fee and percentage pricing behave as assets and planning needs change.