For instance, a wealth manager might charge a percentage of assets under management for investing services, while adding surcharges for other advice on unrelated matters like estate planning. You'll find several companies that combine aspects of these models. The more help you need, the more you'll pay, but if you have relatively simple needs, then this way of working can save money. Those numbers are roughly in line with the normal percentage range for those who charge percentages of managed assets.įinally, a few companies charge hourly rates for their services.

The same survey suggests that typical fees might range $12,500 for a $1 million client and $55,000 for someone with $7.5 million or more. Other companies charge fixed annual fees. For instance, clients with $1 million under management typically pay around 1% of assets per year, according to one industry study, while those with $10 million pay closer to 0.7%. Fee schedules often have sliding scales that reduce the percentage charged for wealthier clients. The most common involves charging a percentage of the assets that the wealth manager has under management. How wealth-management fees workĭifferent wealth managers charge clients in different ways. The answer depends on the particular arrangement between you and your wealth manager, but the key point is that you should never expect a fee arrangement to cover absolutely everything the wealth-management company will arrange or do on your behalf.

Because wealth management involves a host of ancillary services, it can be hard for clients to understand exactly what's included in their wealth-management fee. Wealth management is a service that financial institutions provide for clients with higher net worth and income, and most wealth managers have fee schedules that define the costs of asset management as well as charges for account handling and other private client services.

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