Fee Transparency Guide
What Is the Average Fee for a Fiduciary Financial Advisor?
Understanding how professional financial guidance is priced helps you evaluate value; ensuring your advisory relationships are transparent, fair, and aligned with your long term goals.
The average fee for a fiduciary financial advisor typically ranges from 0.50% to 2.00% of assets under management annually for asset-based models, to $150 to $400 per hour for hourly engagements, depending on the fee structure and scope of services. Fees vary by advisor type, client situation, and services provided.
When evaluating financial advice, understanding the fee structure is just as important as knowing the absolute cost. Because fiduciary advisors are legally bound to act in your best interest, their fee structures are generally designed to promote transparency and manage conflicts of interest. However, those structures can take several different forms depending on whether you require comprehensive wealth management, a one-time financial plan, or targeted hourly consulting. For a full breakdown of legal requirements, you can read our guide on What is a Fiduciary Financial Advisor?.
Pricing Models
Common Fiduciary Fee Structures in 2026
Fiduciary financial advisors utilize diverse pricing models to match the specific planning needs and preferences of their clients.
Assets Under Management
The advisor charges a percentage of the portfolio they manage, typically around 1.00% for a $1 million portfolio. According to industry surveys, the average AUM fee is approximately 1.05% as of 2026, with lower percentage rates applied to larger portfolios.
Flat or Project Fees
A single fixed fee is charged for a specific deliverable, such as a comprehensive retirement road map or a business succession plan. Typical flat planning fees range from $1,500 to $7,500, with an industry average of approximately $2,926 as of 2026.
Hourly Rates
Clients pay for the exact time spent on their planning, ideal for targeted questions or limited-scope consultations. Typical rates run from $150 to $400 per hour, with the average hourly fee for experienced practitioners sitting around $268 per hour as of 2026.
Annual Retainers
Ongoing subscription or retainer fees cover continuous planning services without tying the fee to an investment portfolio. Ongoing subscription and retainer models have become more common, with annual retainers averaging approximately $6,815 as of 2026.
Fee Variables
What Influences Fiduciary Advisor Fees?
Advisory pricing is not one size fits all. The ultimate cost of professional fiduciary guidance is heavily influenced by three distinct variables. Our goal is to ensure clients understand how these factors affect their planning costs.
By aligning the pricing model with your unique planning complexity, we seek to establish a relationship built on transparency and long term strategic value. Note that different service models involve varying trade-offs, and results depend on your individual circumstances.
Portfolio Size and Scale
Asset-based fee schedules are structured as tiered rates, where the percentage fee decreases as the portfolio size increases. According to a Cerulli Edge study on advisor pricing, approximately 83% of advisors expect to charge less than 1.00% for client portfolios exceeding $5 million as of 2026, with fees averaging around 0.66% for portfolios above $10 million.
Service Complexity
A simple asset allocation plan requires less time and technical coordination than comprehensive planning. For clients needing integrated retirement income strategy development, advanced tax optimization, and estate plan coordination, fees are scaled to reflect the intensive expertise required.
Ongoing Partnership vs. One-Time Projects
Continuous relationships involving proactive, quarterly strategy reviews and ongoing portfolio management are priced differently than standalone planning projects. Ongoing models provide continuous support as tax codes and personal circumstances evolve.
Fiduciary Advisor Costs in the Twin Cities
In metropolitan areas like Minneapolis, St. Paul, and eastern suburbs such as Lake Elmo, Stillwater, and Woodbury, fiduciary advisor fee structures generally align with national averages. However, local dynamics can shift the value calculation for high earning professionals and business owners.
Minnesota possesses a unique state tax landscape, including state-specific rules on taxing retirement income and Social Security. Working with a local fiduciary advisor who possesses specialized knowledge of regional tax codes can help you avoid unnecessary tax drag; adding substantial value that goes beyond basic portfolio management.
To learn more about local retirement considerations, explore our detailed guides on Retirement Planning in Minnesota, how to navigate RMD Strategy & Roth Conversions, and evaluating how long $750,000 will last in retirement at age 62.
Local Corporate Benefit Coordination
For professionals employed at prominent Twin Cities employers, evaluating financial advisory costs must account for specialized benefits integration. A qualified local advisor helps align retirement transitions with employer-specific pension and equity programs.
- University of Minnesota Faculty: Managing academic pensions and retirement plan distributions. View our U of M Retirement Guide.
- 3M Executives: Structuring pension choices and Net Unrealized Appreciation (NUA). View our 3M Benefits Guide.
- Graco & SaaS Leaders: Optimizing stock options, equity awards, and deferred compensation. View our Graco Guide and our SaaS Executive Guide.
How to Evaluate Whether Advisory Fees Are Reasonable
Evaluating a financial advisor involves looking beyond the sticker price to measure the total value of the services and standards they provide.
A reasonable fee is one where the value of services; such as tax planning, retirement cash flow structuring, and estate coordination; directly addresses your main financial complexities. If you are comparing models, read our analysis of an Independent Fiduciary Advisor vs. Broker to better understand different operational standards. You should also watch out for potential red flags when choosing a financial advisor.
Advisor Interview
Key Questions to Ask an Advisor About Fees
Before hiring any financial professional, ask these direct questions to ensure total alignment and prevent unexpected costs.
"Are you a fiduciary at all times?"
Some advisors operate under a dual registration model; acting as a fiduciary when managing assets but switching to a broker standard to sell commissionable products. Ensure your advisor is a fiduciary across all accounts and services.
"How exactly are you compensated?"
Ask for a written breakdown of all potential revenue sources. This includes direct fees from you, but also any indirect referral fees, product commissions, or mutual fund service fees that could influence their planning recommendations.
"What services are covered in this fee?"
Clarify whether the fee includes only investment management or extends to comprehensive planning. Comprehensive planning should encompass tax mitigation planning, cash flow analysis, retirement income mapping, and estate coordination.
The New Horizons Approach to Fiduciary Fees
We believe in transparent, straightforward pricing that aligns our goals with yours. We offer three distinct engagement levels designed to fit different financial complexities.
Ongoing Comprehensive Strategy
Our primary planning model for families and executives.
$150 to $300 / mo
plus 0.50% of assets under management
This model provides ongoing comprehensive financial planning alongside continuous portfolio management. It features regular quarterly strategy reviews, structured cash flow management, ongoing tax optimization planning, and coordinated wealth accumulation or decumulation strategies. By combining a low subscription fee with a 0.50% AUM rate, we maintain a structure designed to minimize conflicts and keep our focus on your long-term success.
Complex High-Net-Worth Planning
For advanced estates, business transitions, and complex tax situations.
Up to $10,000 / yr
custom fixed-fee advisory
Designed for business owners navigating strategic exits or individuals with highly complex tax, corporate benefit, and estate situations. This level of advisory features intensive coordination with CPAs and estate attorneys, legacy transfer planning, and customized corporate equity optimization.
One-Time Simple Planning Engagement
A single-meeting proposal engagement for targeted check-ups.
$1,000 flat
one-time payment
A strict, one-meeting review of your current retirement trajectory and proposal options. This engagement is limited in scope to the initial presentation; with no further ongoing advisory support or portfolio management. This is ideal for professionals seeking an objective second opinion on their planning readiness.
Our process always prioritizes strategy before products. We do not use standardized templates or rush to recommend specific assets. Instead, our advisors, including Keith Willey, Lars Engman, MBA, Garrett Engman, and Alec Engman, B.S. Economics, dedicate substantial personal focus to every strategy.
Our boutique structure intentionally limits client capacity to maintain high-touch relationships. If you are unsure about your planning readiness or want to explore our fit, we offer a low-pressure, no-cost first conversation. This initial meeting allows us to understand your complex financial decisions and see if our transparent structure fits your strategic needs.
Connect With Our Team Online
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Common Questions
Frequently Asked Questions About Advisor Fees
What is the usual cost of a financial advisor?
The usual cost of a financial advisor depends on the pricing model and your portfolio size. For asset management, most advisors charge approximately 1.00% of assets under management annually for mid-sized portfolios. For standalone project planning, flat fees generally range from $1,500 to $7,500, while hourly consulting typically costs between $150 and $400 per hour.
Are there hidden costs when using an advisor?
Fiduciary advisors are required to disclose all conflicts and costs in writing, but indirect fees can still impact your portfolio. These may include underlying mutual fund expense ratios, transaction clearing fees, or platform administrative charges. Always ask your advisor to provide a complete list of these external expenses before executing any strategy.
Is $100,000 enough to work with a financial advisor?
Yes, $100,000 is enough to work with a financial advisor, although some firms enforce higher account minimums for asset management services. Many fiduciary advisors offer alternative hourly or flat-fee arrangements that allow you to receive comprehensive retirement planning and tax guidance without meeting asset minimums.
Take the Next Step in Your Financial Journey
Whether you are an executive nearing retirement or a business owner planning an exit; our fiduciary team is here to provide strategy first planning designed to protect and build your wealth.