How Advisor Fees Affect Long-Term Portfolio Value

Flat-Fee vs. AUM: Annual Cost Comparison

A 1% AUM fee rises as your portfolio grows. A flat-fee stays consistent.

Annual cost at different portfolio levels

$1M

$10k vs. $10k

$2.5M
$10k vs. $25k

$5M

$10k vs. $50k

$7.5M

$10k vs. $75k

$10M

$10k vs. $100k

Flat-fee: $10,000 1% AUM fee

At $2.5M, a 1% AUM fee is $25,000 per year compared with a $10,000 flat-fee.

Flat-fee shown as current annual cost. In the long-term projection below, the flat fee increases 3% annually.

The annual difference is only part of the story. Over time, fees can also affect how much your portfolio has left to grow.

Estimated Portfolio Value After Fees

Move the slider to compare long-term portfolio impact.

Starting Portfolio: $2,500,000

$1M$2.5M$5M$7.5M$10M

Difference in portfolio value
(flat-fee vs. AUM)

Hover over the lines to see estimated portfolio value by year.

Estimated portfolio value after fees: Flat-fee: AUM:

Time horizon:

Assumes 6% annual growth before fees

These figures show estimated portfolio value after fees — not the fees paid.

Hypothetical example. Assumes a 6% return before fees, a $10,000 flat annual fee growing 3% annually, and a 1% AUM fee. This does not reflect actual investment performance, tax outcomes, or the value of financial advice. Results will vary.