When people talk about financial advisory fees, the focus is usually on one thing: “am I overpaying?” And that’s a fair question. Nobody wants to waste money on services that don’t deliver value.
But here’s the truth: when it comes to financial advice, underpaying can be just as dangerous as overpaying. Like with most things in life, you usually get what you pay for — up to a point.
Why I Chose Flat Fees at Verbatim Financial
I run Verbatim Financial, a flat-fee RIA. My clients pay $10,000 per year for comprehensive service: full financial planning and investment management.
I chose a flat-fee model because I believe it’s the clearest, most transparent way to work with clients. You always know exactly what you’re paying and what you’re paying for. Your fee doesn’t change just because:
You’ve saved more,
The market went up or down, or
You have more (or fewer) assets to manage.
Your fee reflects the actual work I do for you every year — not a percentage skimmed off your portfolio balance.
What I didn’t do is choose flat fees because they’re, “cheap.” In fact, for some clients, my model may cost more than they’d pay under a percentage-of-AUM arrangement. That’s okay. Because this isn’t about being the cheapest option — it’s about being the fairest and most straightforward.
The Problem With Overpaying
Now, let’s be clear: people do overpay for financial advice. If you’re paying 1% of AUM on a $2 million portfolio, that’s $20,000 a year. That number starts to get crazy.
Yes, good financial advice is valuable. But above a certain level, you’re not getting twice the service or value just because you have twice the assets.
The Problem With Underpaying
But here’s the flip side — underpaying for advice is just as bad. If you’re only paying a fraction of what it actually takes to employ an experienced, qualified advisor, you’re probably not getting much value at all.
Maybe your advisor is stretched too thin to give you the attention you deserve. Maybe they don’t have the experience to navigate complex tax, retirement, and estate planning needs. Or maybe the “advice” is really just product sales in disguise.
For a seasoned professional, the economics of running a high-quality, client-first practice mean the right number tends to settle somewhere around what 1% of AUM looks like on a $1–$1.5 million portfolio — roughly $10,000–$15,000 a year. Pay much less than that, and you’re not likely to get real, proactive advice.
What My Clients Get for $10,000 a Year
When someone hires me, they’re not just getting an investment manager. They’re getting:
- Comprehensive financial planning — retirement income planning, tax strategy, estate considerations, charitable giving, cash flow optimization, insurance analysis, and more.
- Hands-on investment management — not just picking funds, but building a disciplined, diversified strategy aligned with your goals.
- Unbiased, conflict-free advice — because I’m not incentivized by commissions, product sales, or asset balances.
- Accessibility and attention — my clients know they can reach me when they need me. They’re not a small fish in a big pond.
That’s the difference between simply paying an advisor something versus paying enough to work with someone experienced who puts your interests first.
The Bottom Line
You don’t want to overpay for financial advice — nobody does. But don’t be fooled into thinking cheaper is always better, either. With advice, like most things in life, you tend to get what you pay for.
At Verbatim Financial, I’ve chosen flat fees because I believe in clarity, fairness, and transparency. Clients pay for the work I do — not the size of their portfolio. And at $10,000 a year, they’re paying for real, professional advice from someone who’s been on Wall Street, built businesses, and now helps clients confidently navigate their financial lives.
That’s value — without the games.