How to read this number
Fees are not bad by default. The question is whether the planning you receive is worth the dollars leaving your account. A $10,000 annual fee and a $50,000 annual fee should not buy the same vague quarterly meeting.
For business owners, the fee should be judged against the whole planning relationship: tax-return review, CPA coordination, owner-pay strategy, cash-flow planning, investment management, retirement projections, and family goals.
What this calculator assumes
The illustration holds the starting portfolio and fee percentage constant, then multiplies one year of fees by the selected number of years. It deliberately does not estimate market returns, deposits, withdrawals, tax effects, fee breakpoints, or the investment growth that might have occurred on money used to pay fees.
That makes the result easy to understand, but it is not a projection of actual future fees or portfolio value. Ask the advisor for a personalized dollar estimate using the firm’s full fee schedule and your expected account structure.
Example
A $2 million portfolio billed at 1% produces a simple estimate of $20,000 for one year and $200,000 over ten years if the balance and fee remain unchanged. Real balances move, so actual fees could be higher or lower.
Questions to bring to the next meeting
- Are all accounts billed at the same percentage?
- Do breakpoints apply as assets grow?
- Are investment-fund and platform expenses additional?
- What planning work is included beyond portfolio management?
- Could another pricing model fit the work more closely?
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.
Flat Fee vs. AUM for Business Owners
Compare advisor pricing models when most of your complexity is outside the portfolio.
Financial Advisor for Business Owners
What owners should expect from a planning relationship.
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