Financial advisors typically charge a 1% annual fee for managing a $2 million investment portfolio, costing over $375,000 in 10 years. Fee rates vary based on experience and services provided. Choosing a lower-cost advisor or service structure could yield better returns. Evaluate fees and services to determine if they align with your financial goals.

A 2021 study found the average financial advisor fee for $1 million in assets under management is 1.02% annually. Fees can vary by advisor and typically cover investment management and reporting. Higher fees may indicate more experience or services. Some advisors offer tiered fee structures based on account size.

Different fee tiers can significantly impact the ending value of a $2 million portfolio over 10 years. Paying higher fees doesn’t guarantee better performance. Consider the scope of services needed when selecting an advisor. Negotiate fees respectfully if they seem misaligned. Robo-advisors are an option for simpler portfolio management.

Carefully assess the services you need from a financial advisor to determine the reasonable fee to pay. Avoid paying for unnecessary services. Review fee arrangements periodically to ensure they meet your evolving needs. Take time to compare all options, including robo-advisors, before making a decision.

Maintain an emergency fund in a liquid account to cover unexpected expenses. Compare savings accounts to find high-interest options. Financial advisors can use SmartAsset AMP to connect with leads and automate marketing. The platform helps advisors focus on conversions.

Use SmartAsset’s investment return calculator to compare the impact of fees on your portfolio over time. Consider the tradeoffs of liquid cash versus potential inflation. Evaluate all financial decisions carefully to align with your goals.

Read more at Yahoo Finance: Is a 1 % Advisory Fee Too Much for My $2M Portfolio?