“So what’s this going to cost me?”
It’s one of the first questions I get, and it should be. You worked your whole career building your nest egg. You should know exactly what you’re paying for advice, and exactly what you get for it.
Most advisors charge a percentage of your assets. I charge a flat fee. Here’s what that means, what’s included, and why I set it up this way.
The short answer: For a flat $15,000 a year, billed $3,750 each quarter, you get one advisor managing your investments and your whole retirement plan, from your monthly paycheck to your taxes to Social Security. The fee doesn’t go up when your portfolio does.
What’s included in the flat fee?
One flat fee. One dedicated advisor. Everything connected.
- Retirement income planning. Turning your 401(k), IRAs and other savings into a steady, tax-efficient paycheck, built to last as long as you need it.
- Tax planning. Thinking ahead about withdrawals, Roth conversions and timing, decisions that can make a real difference in what you keep.
- Social Security. Deciding when each of you should claim. It’s permanent once it’s made, so it’s worth getting right.
- Risk management. Looking at what could knock your plan off course, and whether your insurance coverage fits.
- Estate planning coordination. Working with your attorney so your beneficiary designations, account titling and overall plan match your wishes.
- Ongoing planning. A living plan built around how you actually want to spend your time, updated as your life changes.
- Cash flow. A clear system for how money moves each month, so retiring doesn’t feel like losing your paycheck.
- Investment management. A portfolio built to support your life, not just to grow for growth’s sake.
The part I care about most is “everything connected.” A Roth conversion can raise your health insurance premiums. Your Social Security decision changes how much you pull from your IRA. When one person sees the whole picture, those decisions get made together instead of one at a time.
What’s not included: expenses inside the funds you own, any trading or custodian fees, and what you pay your CPA or estate attorney. Those are separate, and they’re spelled out in my Form ADV Part 2A.
What does a one-page plan look like?
This example is hypothetical and simplified. It is not based on any client and does not assume any investment return.
You may remember Dave and Lisa from Can I Retire at 58 With $2.5 Million? They’re both 58, with $2.5 million saved. Here’s what fits on their one page:
- Spending: $120,000 a year from savings until 65, about $10,000 a month.
- The paycheck: three years of spending in cash and Treasuries, a $50,000 cushion, and a monthly transfer from Schwab to checking. I walked through it in How to Turn Your 401(k) Into a Retirement Paycheck.
- Withdrawal order: taxable account first, then 401(k)s and IRAs, Roth last.
- Taxes: room for Roth conversions in the gap years, balanced against their marketplace premiums.
- Health insurance: marketplace coverage until Medicare at 65.
- Social Security: both claim at 67.
- What we revisit: spending, the cash reserve and the Roth conversion amount, as their life and the tax rules change.
One page, and every line on it affects the others. That’s what the fee pays for: building the plan, and keeping it current.
Flat fee vs. a percentage of your assets
A common way advisors charge is a percentage of the money they manage. Using 1% a year as an example, here’s how the dollars compare:
| Portfolio | 1% of assets | Flat fee |
|---|---|---|
| $1 million | $10,000 | $15,000 |
| $2.5 million | $25,000 | $15,000 |
| $3 million | $30,000 | $15,000 |
| $5 million | $50,000 | $15,000 |
Two things stand out.
First, a percentage fee grows as your portfolio grows. If $2.5 million becomes $3 million, a 1% fee goes from $25,000 to $30,000. The work usually doesn’t change much. A flat fee stays the same.
Second, a percentage fee isn’t always more expensive. On $1 million, 1% is less than my fee, and many firms charge less than 1% on larger balances. So compare the total dollars and what’s included, not just the rate.
There’s one more reason I like a flat fee. My pay doesn’t change whether your money stays invested, pays off your mortgage or covers the tax on a Roth conversion. It’s one less thing pulling on the advice.
Flat fee FAQs
Is a flat fee financial advisor worth it? It depends on what you need and what you’d pay elsewhere. If you want planning and investment management together, compare what each option costs in dollars and what you get for it.
Is there an account minimum? No. Most of the families I work with have $1.5 million to $5 million saved, but there’s no minimum.
How is the fee billed? $3,750 each quarter, in advance. If you end the agreement, you get a prorated refund.
Does the fee change when the market moves? No. My fee doesn’t rise in a good year or fall in a bad one.
One advisor, one plan, one fee
If you’re 55 or older and want to see what your own one-page plan could look like, schedule a conversation. We’ll go over what you have, what you want your retirement to look like, and whether working together makes sense.
No percentages and no surprises. Just one fee you can see coming, and one advisor who knows your whole plan. Are you ready to Own Your Monday?
Own Your Monday Wealth Management is an investment adviser registered with the Maryland Securities Division. Registration is not an endorsement by securities regulators and does not imply a certain level of skill or training. Advisory services are offered only to clients or prospective clients where the firm is properly registered or exempt from registration. This content is for educational and informational purposes only and is not personalized investment, tax, or legal advice. Information is believed to be accurate as of the date published but is not guaranteed. No strategy can guarantee a particular outcome, and all investments involve risk, including possible loss. Reading this post does not create an advisory relationship. The example above is hypothetical and does not represent any actual client. The fee comparison is illustrative; other advisors’ fees and services vary. Our fees, other costs clients may pay, and our services are described in full in our Form ADV Part 2A and at adviserinfo.sec.gov.