From Percentage Fees to Flat Fees: One Client’s Discovery
When John’s portfolio reached $2.5 million, he had a realization. Under his traditional brokerage arrangement, he was paying 1% of assets each year—about $25,000 annually—just for his advisor to manage his investments.
It was only when he compared that to a flat-fee advisory model that the difference became clear. Instead of paying more as his wealth grew, he could have been paying a simple, predictable flat fee that stayed the same regardless of portfolio size. That shift meant saving tens of thousands of dollars every year—money that could be reinvested, spent on family, or directed toward charitable giving.
This is where the value of a flat-fee model comes into focus.
The Cost Difference: AUM pricing model vs. Flat Fee pricing model
As John saw, once you cross into the multi-million dollar range, the savings are undeniable.
Simple, Transparent, and Easy to Understand
Flat fees replace percentages, fluctuating costs, and hidden commissions with a single number you can plan around. It’s straightforward, predictable, and easy to budget.
Even better, this single fee includes both comprehensive financial planning and asset management. Your financial life isn’t sliced into separate services with separate charges. Instead, it’s one relationship, one fee, everything included.
Scope of Services and How Fees Are Structured
Many advisors primarily focus on managing investments. A flat-fee approach can take a broader view, covering areas such as:
- Retirement and income planning
- Tax strategies
- Risk and insurance reviews
- Estate and legacy planning
- Debt management
- Charitable and family gifting strategies
By contrast, under traditional assets under management (AUM) models, compensation is tied to the size of the portfolio. Advisors may have incentives to retain more assets under management, such as discouraging debt repayment, delaying large purchases, or pushing assets into managed accounts through rollovers. In some cases, revenue may also come from commissions, fund expenses, or other charges that are not always transparent—such as high-commission annuities or mutual funds.
Flat fees remove this link by charging the same amount regardless of asset size or product choice, reducing reliance on commissions or variable fees.
About Our Flat Fee
At Mayfair Financial, based in St. Louis and serving clients nationwide, we’ve built our business on a straightforward, transparent fee model. For $2,500 per quarter, our clients receive tax-smart retirement planning and comprehensive asset management—all included.
Here’s what makes it different:
No commissions, no loads, no referral fees—ever.
Fiduciary commitment: legally obligated to put your interests first.
Independence: no ties to products or providers, full freedom to tailor solutions.
Flat and fair: our fee remains the same regardless of how much your assets grow (up to $10 million net worth).
Aligned With Your Life, Not Our Paycheck
Financial advice should be about your goals, your values, and your future—not about how an advisor gets paid. A flat-fee model keeps costs transparent and incentives aligned.
It’s simple. It’s clear. And it ensures that every recommendation is grounded in what matters most—your life and the people you love.
The content is developed from sources believed to provide accurate information. The information in this material is for educational purposes only and is not intended as tax, investment, or legal advice. It may not be used to avoid any federal tax penalties. Please consult legal, investment, or tax professionals for specific information regarding your situation. Mayfair Financial and FMG Suite developed and produced this material to provide information on a topic of interest. FMG is not affiliated with the named state-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.