What Should You Pay for Financial Services? 9 Answers
What they cost: Most clients with more than $100,000 pay less than 1.25% of assets per year in account management fees, according to Cerulli Associates. But fees exceed 2% for some less-affluent investors. Of those with just $100,000 in assets, a quarter pay more than 1.5% per year.
Why: Financial service providers go by many names — financial advisers, wealth managers, family offices, private client groups, bank trusts. The basic business model is the same: Provide investment and other financial advice, usually for an annual charge based on the size of assets being managed. Of clients with more than $10 million in assets, Cerulli Associates estimates, two thirds pay less than 0.75% per year.