Clear Money Guide
What this guide covers
A quick view of the questions and evidence developed below.
Comparison tables scroll horizontally on smaller screens.
Short answer: Flat-fee wealth management gives you ongoing planning and portfolio oversight for a clear annual price—no percentage of assets. To compare it fairly to AUM, verify scope, SLAs, and all-in cost (advisory + any platform fees + fund ERs) in writing.
Terms in plain English
- Flat-fee (annual): one price for a year of service (often billed monthly/quarterly).
- Wealth management: financial planning plus portfolio oversight/trading (confirm details).
- All-in cost: advisory fee + platform/overlay fees (if any) + fund/ETF expense ratios.
What’s included (and what to confirm)
- Planning: 2–3 meetings/year, written recaps in 3–5 business days, year-end checklist, CPA coordination.
- Portfolio oversight: IPS review, risk/asset mix, rebalancing policy, tax-aware trading.
- Trading authority: discretionary or limited power of attorney—get it in writing.
- Where assets sit: the custodian (e.g., brokerage) and any platform/overlay fees in basis points.
- Deliverables & SLAs: recap timing, email response time (1–2 biz days; urgent 24h), trading windows.
A flat fee often means you do more of the research yourself.
Flat-fee arrangements frequently trade ongoing monitoring for a lower price — a self-directed research tool fills exactly that gap.
What Morningstar Investor actually is. A paid subscription research platform — not a matching service and not an advisor. It gives you a combined view of your holdings across accounts, fund and stock research, and screening tools you would otherwise pay an advisor to run for you.
We earn a commission if you subscribe through this link. Morningstar has published independent fund and stock research since 1984. This is not the only research platform available, and it does not replace professional advice on your specific tax or estate situation.
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Service calendar (example you can request)
| Quarter | Focus | Deliverables & SLAs |
|---|---|---|
| Q1 | Annual plan + tax outlook; cash & savings targets | Recap 3–5 biz days • updated action list |
| Q2 | Portfolio drift & risk review; IPS check; rebalance if needed | Trade summary • IPS confirmation |
| Q3 | Insurance/benefits & beneficiary spot check | Coverage notes • beneficiary report |
| Q4 | Year-end/tax moves (Roth/charitable/harvesting); open enrollment | Year-end checklist • CPA letter |
Pricing snapshots (illustrative)
| Scenario | Typical flat fee (annual) | What you get |
|---|---|---|
| Planning + light portfolio oversight | $2,500–$4,000 | 2–3 meetings, recaps, oversight, year-end checklist |
| Planning + active portfolio management | $3,000–$6,000 | Above + rebalancing/trading (confirm policy & windows) |
| Tax-heavy / equity comp household | $3,500–$7,000 | RSUs/ISOs plan, sell strategy, CPA coordination |
Ranges vary by firm. Verify in writing (proposal + Form ADV Item 5) and confirm what’s included.
“All-in” comparison vs AUM (turn into dollars)
- AUM: enter tiers by slice in the AUM Fee Calculator and add typical ETF ER + any platform fee.
- Flat-fee: use the annual price in the proposal (confirm trading is included).
- Pick the option with the lowest all-in dollars that still meets your scope + SLAs.
Convert each model to dollars in the financial advisor fee calculator.
Exactly what to ask for (copy/paste emails)
Flat-fee wealth management proposal
Subject: Flat-fee wealth management — scope & SLAs Hi — could you send: 1) Annual flat fee and billing cadence, 2) Service calendar (meetings, recap timing) and email SLAs, 3) Whether portfolio management + trading are included (policy & windows), 4) Custodian and any platform/overlay fee (bps) + typical ETF ERs, 5) Form ADV Part 2A pages for Items 5, 12, 14. Thank you!
Apples-to-apples vs AUM
Subject: Flat fee vs AUM — comparison details Hi — for comparison, please confirm: * AUM tiers (by slice), platform fee (bps), typical ETF ERs * Flat annual fee with included trading/oversight and SLAs * Hourly rate for add-ons (if needed) Thanks!
When flat-fee wealth management fits (and when it doesn’t)
- Great fit: you want ongoing planning + portfolio care without paying a % of assets.
- Consider AUM: if you prefer discretionary management tightly tied to assets and the AUM quote is low at your tier.
- Consider hourly: if you only need targeted help (2–7 hours) and no ongoing monitoring.
FAQ
Does “flat-fee” include trading?
Often, yes—but confirm. Ask for the rebalancing policy, trading windows, and who places trades.
What about platform/overlay fees?
Some custodial/program setups add 5–20 bps. If present, add them (and fund ERs) to your all-in math.
Is flat-fee cheaper than AUM?
Frequently above certain balances. Model AUM by slice in the calculator and compare to your flat annual quote.
Can I start flat-fee and add hourly work?
Usually yes. Ask for the hourly rate and a not-to-exceed process for add-ons.
Related reads & tools
- Flat-Fee Financial Planning · Fee Comparison: AUM vs Flat vs Hourly
- AUM Fees Explained · AUM Fee Examples
- Hourly Scope Estimator · Service Calendar & SLAs
- Form ADV in 7 lines · Negotiate Fees (scripts)
Education only; not legal, tax, or investment advice. Confirm fiduciary duty, scope, SLAs, custody, and all-in fees in writing (Form ADV Items 5, 12, 14).
What the filings actually say. We measured the fee schedules 176 SEC-registered advisers publish in their Form ADV Part 2A filings: at $250,000 only 28.4% disclose a fee you can price at all, and the weighted median annual cost among those that do is $2,000 to $2,500. The full benchmark, with method.