How Much Does a Financial Advisor Cost in 2026? Flat Fees vs. AUM Explained

A practical guide to financial advisor costs for individuals and business owners in Beverly Hills, Los Angeles, and Las Vegas.

How much should you pay for professional financial advice? For some clients, the fee is a percentage of the investment assets being managed. For others, it is a fixed price for tax planning, financial strategy, or business advisory services. The difference can amount to thousands of dollars annually, but the services are not necessarily the same.

The 2026 State of Financial Planning Fees study from Datos Insights and Envestnet | MoneyGuide reported an average bundled assets-under-management (AUM) fee of 0.96% among surveyed advisors. At a hypothetical 1% annual rate, managing a $1 million portfolio would cost $10,000 per year before any additional account or fund expenses.

FACT ADVISORS takes a different approach for its published tax and financial advisory packages. Individual plans range from $700 to $4,500 per year, while business plans start at $6,000 annually. Those plans focus on defined advisory services, not investment portfolio management. The firm serves clients through offices in Beverly Hills, California, and Las Vegas, Nevada.

The key is to compare the services, not only the price. See FACT ADVISORS Plans & Pricing

What Are the Main Financial Advisor Fee Structures?

1. Assets Under Management (AUM): Percentage-Based Fees

AUM pricing is common among registered investment advisers who manage client portfolios. The advisor typically charges an annual percentage of the assets it manages. If the portfolio changes in value, the dollar amount of the fee can change, even if the percentage stays the same.

A percentage-based fee can make sense if you want ongoing investment selection, portfolio monitoring, rebalancing, and related planning services. Some firms also use tiered rates that decline as account balances increase. Always ask what is included, whether there is an account minimum, and what expenses are charged separately.

2. Flat-Rate or Fixed-Fee Advisory

A flat fee pays for an agreed scope of services, such as annual tax planning, personal financial analysis, business advisory meetings, or fractional CFO support. It is not automatically linked to the value of an investment portfolio. Clients can budget for the annual engagement, knowing which deliverables and meetings are included.

Flat-rate does not mean unlimited. If additional returns, bookkeeping cleanup, specialized modeling, or other work falls outside the engagement, extra fees may apply. This is why the written service agreement matters as much as the price.

3. Hourly or Project-Based Advice

Some professionals charge by the hour or quote a project fee for a specific need, such as a retirement-planning review, an isolated tax question, or a one-time business financial analysis. This can be practical when you do not need ongoing support. It can be less predictable when you regularly need new consultations or changes to your financial plan.

Flat Fee vs. Percentage Fee: What Would You Actually Pay?

Financial Advisor costs: Percentages sound small until you translate them into annual dollars. The table below applies a hypothetical, constant 1% rate to the full account balance. It is a math illustration, not a fee quote or a prediction of what every investment adviser charges.

Managed assets	Illustrative AUM rate	Estimated annual AUM fee
$250,000	1.00%	$2,500
$500,000	1.00%	$5,000
$1,000,000	1.00%	$10,000
$2,000,000	1.00%	$20,000
$5,000,000	1.00%	$50,000

Actual AUM rates often use breakpoints, so a larger portfolio may pay a lower blended percentage. Investment funds, custodians, or other providers may also charge separate fees. Request the full fee schedule and cost disclosures.

Question	AUM-based investment management	Flat-rate advisory
How is the price set?	A share of assets managed	A fixed amount for the agreed scope
What typically drives the fee?	Size of the managed portfolio	Services, complexity, and engagement level
What is the primary work?	Portfolio management, often with planning	Tax, financial analysis, or business advisory as contracted
What should you verify?	Tiered rate, included planning, extra investment costs	Deliverables, meetings, tax returns, and add-on fees

How Much Does FACT ADVISORS Charge in 2026?

FACT ADVISORS publishes fixed annual pricing for individual and business tax and financial advisory engagements. All listed plans cover a 12-month period, and engagements are billed annually. The exact scope, included tax returns, meeting frequency, and any additional services are governed by the engagement agreement.

Annual plan	Price	Primary focus
Individual Essential	$700 / year	Individual federal tax filing and core annual tax planning
Individual Private Client	$1,800 / year	Expanded tax and financial strategy for executives and investors
Individual Private Wealth	$4,500 / year	Quarterly strategy and more complex multi-entity planning
Business Advisory	$6,000 / year	Quarterly business tax and financial advisory
Business Strategic CFO	$24,000 / year	Monthly fractional CFO advisory, forecasting, and KPIs
Executive CFO	Custom quote	Executive-level financial leadership for complex businesses

Individual plans: From annual tax guidance to private-wealth coordination

Individual Essential, $700/year. Includes an individual federal income tax return, annual tax-planning consultation and projection, estimated-tax calculations, retirement contribution planning, and general tax advisory by email.

Individual Private Client, $1,800/year. Adds two tax-planning sessions, scenario analysis, investment and capital-gains tax planning, real-estate and rental-property tax strategy, multi-state and digital-asset tax consultation, and an annual financial strategy meeting.

Individual Private Wealth, $4,500/year. Adds quarterly financial and tax strategy meetings, multi-entity coordination, advanced real-estate and capital-gains planning, charitable-giving tax consultation, and coordination with attorneys, investment advisers, and lenders.

Business plans: From quarterly advisory to fractional CFO support

Business Advisory, $6,000/year. Includes business and owner federal income tax returns, quarterly advisory and financial-statement reviews, estimated-tax calculations, owner compensation and entity-structure reviews, and bookkeeping and payroll oversight (not full processing).

Business Strategic CFO, $24,000/year. Builds on Business Advisory with monthly CFO meetings, budgeting, cash-flow forecasting, KPI monitoring, profitability and margin analysis, projections, and financing-readiness support.

Executive CFO, custom pricing. Designed for companies needing more intensive executive financial leadership, including biweekly meetings, multi-entity reporting review, financial modeling, capital and debt analysis, and investor or lender package support.

For the full service lists and current terms, review FACT ADVISORS Plans & Pricing before selecting a plan.

When Can Flat-Rate Advisory Be a Better Fit?

The answer depends on where you need the most help. Investment management can be valuable, but your most important financial questions may involve tax exposure, business income, compensation, property, or cash flow rather than which securities to buy or sell.

Business owners and founders

A Beverly Hills business owner may be deciding how much to pay themselves, whether their entity structure still fits, how to read quarterly results, or how to forecast cash needs. These questions often call for tax and financial analysis or fractional CFO support rather than a portfolio-management relationship.

Executives, professionals, and families

Stock-based compensation, bonuses, retirement contribution limits, side-business income, and multi-state filings can create tax decisions throughout the year. An annual planning relationship helps organize those decisions, although the appropriate scope depends on each household.

Real-estate and cryptocurrency investors

Rental income, depreciation, property sales, capital gains, and digital-asset transactions can require careful documentation and tax coordination. A tax-focused advisory plan may complement an investment adviser who manages a separate brokerage account.

Clients with California and Nevada connections

FACT ADVISORS has offices in Beverly Hills and Las Vegas. For people who own property, operate businesses, earn income, or relocate between California and Nevada, tax residency and state-specific reporting can add complexity. The relevant plan may include multi-state tax consultation, with the precise deliverables defined by the engagement agreement.

What Actually Drives the Cost of Financial Advice?

Two quotes may look very different because the firms are being asked to do different work. When comparing them, focus on four factors:

• Scope. Investment portfolio management, tax return preparation, personal financial analysis, and business CFO work are distinct services. Confirm exactly which are included.

• Complexity. Multiple entities, rental properties, cryptocurrency activity, equity compensation, or multi-state tax considerations often require more analysis.

• Frequency. One annual consultation differs from quarterly planning meetings or monthly CFO reviews.

Credentials and regulated responsibilities. Ask what the firm or professional is qualified and registered to provide, rather than assuming that every person described as a “financial advisor” offers the same services.

A lower quote may be appropriate if you need a narrower service. A higher quote may be justified if it includes broader planning and implementation. The fairest comparison is a service-by-service comparison.

What Is Not Automatically Included in a Flat Annual Plan?

Transparent fees require transparent exclusions. FACT ADVISORS identifies several services that can need a separate engagement or fee, including bookkeeping or accounting cleanup, payroll processing, sales and use tax filings, amended or late returns, complex tax examinations or resolution, business valuations, forensic accounting, extensive modeling, and transaction-related work.

The published annual plans also do not themselves include legal services or regulated investment management. Coordination with an investment adviser or attorney does not mean FACT ADVISORS replaces that professional. Confirm inclusions, exclusions, billing, renewals, and engagement terms in writing.

Seven Questions to Ask Before You Agree to a Financial Advisor Fee

1. What exactly am I paying for? Ask for a list of included services, reviews, meetings, filings, and ongoing access.

2. How are you paid? Clarify whether fees are asset-based, flat, hourly, commission-based, or a combination.

3. What could cost extra? Request a written explanation of exclusions, specialized projects, outside costs, and termination terms.

4. Will my fee change? For AUM, ask how portfolio values and breakpoints affect the fee. For flat fees, ask about scope changes and renewal pricing.

5. Who actually performs the work? Ask about the team’s relevant qualifications, licensing, and whether legal, tax, or investment services are referred elsewhere.

6. Are you acting as a fiduciary for this service? For regulated investment advice, ask about the professional’s registration, fiduciary obligations, and conflicts of interest. Do not assume that a flat fee by itself establishes fiduciary status.

7. Can I review the agreement or disclosures first? Investment advisers generally provide Form ADV disclosures; tax and accounting engagements should clearly describe services and fees in their engagement documents.

Frequently Asked Questions

Is a 1% financial advisor fee expensive?

Not necessarily. At 1%, a $1 million managed portfolio would cost $10,000 per year. Whether that fee is reasonable depends on the investment and planning services, other account costs, and the client’s needs. The 2026 Envestnet | MoneyGuide/Datos Insights survey reported a 0.96% average bundled AUM fee among participating advisors.

Are flat-fee financial advisors always cheaper than AUM-based advisors?

No. Fixed and AUM fees often pay for different services. Flat-rate tax or business advisory can provide cost predictability, while AUM fees commonly cover portfolio management. Compare similar scopes before deciding which represents better value.

Does FACT ADVISORS charge a percentage of investment assets?

The company’s published annual individual and business advisory plans use fixed prices rather than AUM-based billing. Those plans focus on tax, financial analysis, and business advisory services. They do not include investment portfolio management.

How much are FACT ADVISORS individual and business plans?

Published individual plans cost $700, $1,800, or $4,500 annually. Business Advisory is $6,000 per year and Business Strategic CFO is $24,000 per year. Executive CFO pricing is customized. Additional services outside the engagement may cost extra.

Can a flat annual plan include tax preparation?

Yes. FACT ADVISORS lists an individual federal tax return with Individual Essential, and business and owner federal returns with Business Advisory. The specific covered filings and requirements depend on the chosen plan and engagement agreement.

Do Beverly Hills business owners need a different type of financial advisory?

They may. Business income, entity structuring, owner compensation, real-estate activity, and forecasting can require different services than portfolio management. A quarterly business advisory plan or monthly fractional CFO arrangement may be more relevant to these decisions.

Can FACT ADVISORS assist with California and Nevada tax matters?

FACT ADVISORS operates in Beverly Hills and Las Vegas, and its published Private Client and Private Wealth plans include multi-state tax consultation. Specific state returns or specialized matters should be confirmed in the engagement terms.

How can I check whether an investment adviser is a fiduciary?

Ask which entity and professional will provide securities advice and what duties apply. Registered investment advisers have fiduciary obligations and provide disclosures about fees and conflicts; their Form ADV can be reviewed through the SEC’s Investment Adviser Public Disclosure resources. Tax or accounting engagements have different professional obligations.

Choose a Fee Structure That Matches the Advice You Need

A financial advisor’s price matters, but the scope of service matters more. If you want active investment portfolio management, evaluate the adviser’s AUM fee and the services provided. If you want predictable tax planning, financial decision support, or business advisory, compare fixed-fee engagements and their deliverables.

FACT ADVISORS serves individuals and businesses from Beverly Hills, California, and Las Vegas, Nevada, with annual packages built around clearly defined tax, finance, accounting oversight, and advisory needs. Choose the level of support that matches your finances and confirm the details before signing.

Compare annual plans: FACT ADVISORS Plans & Pricing

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