A 0.75% Fee on $2 Million Costs $15,000 a Year

A 0.75% annual fee on a $2 million portfolio comes to $15,000. That is below the typical blended fee of about 0.90% for a $2 million account in 2024 Kitces Research, but the comparison alone cannot say whether the advice is worth the cost.

The survey is a benchmark, not a required price or a score for an individual adviser. Fees vary with the services included, the complexity of a client’s finances and how the firm’s fee tiers work.

An assets-under-management fee may cover more than investment choices. Kitces found that advisers attributed, on average, 59% of the fee to investment management and the rest to financial planning and other services. Clients should ask what that means in their own agreement.

Useful services may include retirement-income planning, tax strategies, estate coordination and help making financial decisions during volatile markets. Ask the adviser to spell out what they handle, how often they meet and what work they do between meetings.

Investment returns are one measure, but compare them with a benchmark that reflects the portfolio’s mix and risk. A portfolio holding more bonds, for example, should not be judged against an all-stock index alone. Also ask whether reported results include the advisory fee and fund expenses.

Those extra costs can add up. The SEC says investment product expenses, transaction charges and other account costs may sit outside an adviser’s fee, and fees reduce the amount left invested over time.

Request the firm’s Form ADV and relationship summary, then ask for a clear breakdown of every charge and service. The SEC’s Investor.gov says these documents disclose fees, costs and potential conflicts; compare them with a flat-fee or hourly planning option before deciding whether the ongoing relationship earns its $15,000 annual price.