SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. When it comes to financial advice, what you pay can vary based on what you get. An advisor who simply sets you up with a passive S&P 500 index fund might not be worth a 1% fee, while an advisor who helps you manage taxes and cash flow, plan for retirement and save for your child’s college education is likely worth significantly more. For example, say you have $1.7 million invested with a financial adviso ...

Core Insights - The article discusses the impact of financial advisor fees on long-term investment returns, emphasizing that even a seemingly small fee can significantly erode gains over time [2][3] - It highlights the average financial advisor fee of 1.02% for $1 million in assets under management, noting that fees can vary based on the advisor's experience and the services provided [3][4] - The article also explains different fee structures, including tiered fees that decrease as asset amounts rise, and customized service offerings that may include comprehensive financial planning [5][6] Summary by Category Financial Advisor Fees - A typical annual fee for managing a $2 million portfolio is around 1%, which can cost over $375,000 in lost returns over 10 years if the portfolio earns 7% [2] - The average financial advisor fee is 1.02% for $1 million in assets under management, but this can vary widely among advisors and firms [3] Fee Structures - Advisors may implement tiered fee schedules where the percentage decreases as the asset amount increases, incentivizing firms to help clients grow their assets [5] - Some advisors customize their services and fees based on client needs, offering lower percentage fees for investment management while excluding financial planning [6] Advisor Experience and Services - Advisors with more experience or special certifications may charge higher fees, and the fee percentage can differ based on account size and service mix [4]