Understanding Wealth Management Fees: What You Pay and What You Get
Wealth management fees are one of the most important factors to understand when choosing an advisor.
If you are entrusting someone to manage your investments, plan your retirement, and optimize your tax strategies, knowing how wealth management fees work ensures transparency and confidence in your long-term financial plan.
At TriState Wealth Advisors, we are fee-only advisors, meaning we are compensated solely by our clients—not through commissions or product sales.
Why Wealth Management Fees Matter
Wealth management fees directly affect net returns. While market performance, asset allocation, and tax efficiency all play roles in long-term wealth growth, fees are the one factor within your control. According to recent financial research in 2025, even a difference of 0.5% in annual fees can compound into hundreds of thousands of dollars over a multi-decade investment horizon.
Choosing a fee-only advisor like TriState Wealth Advisors ensures your advisor’s recommendations are objective, transparent, and aligned with your best interests.
Common Types of Wealth Management Fees
1. Percentage of Assets Under Management (AUM)
The most common structure for wealth management fees is an annual percentage of assets under management. Rates typically range from 0.25% to 1.25%, with larger portfolios often qualifying for tiered or reduced pricing.
$500,000 portfolio at 1% fee = $5,000 annually
$2 million portfolio at 0.50% fee = $10,000 annually
At TriState Wealth Advisors, our fee-only structure ensures that AUM fees are straightforward, with no hidden charges or conflicts of interest.
2. Flat Retainer Fees
Some advisors charge a fixed annual or quarterly retainer, regardless of portfolio size. This appeals to clients who want predictability. Our fee-only approach means we clearly disclose whether planning services are covered under AUM or offered under a retainer model.
3. Hourly or Project-Based Fees
In certain cases, wealth management fees are billed hourly or per project—for example, estate plan reviews, tax strategy sessions, or concentrated equity analysis. TriState Wealth Advisors uses this model when clients need specialized advice without ongoing management.
4. Performance-Based Fees
Less common in traditional advisory firms, performance-based fees tie compensation to returns above a benchmark. As fee-only fiduciaries, we avoid structures that could encourage unnecessary risk-taking, focusing instead on consistent long-term growth.
What Do Wealth Management Fees Cover?
A qualified wealth manager offers more than stock selection. At TriState Wealth Advisors, wealth management fees typically cover:
Investment strategy: Portfolios aligned with current valuations, interest rates, and market cycles.
Retirement planning: Income replacement strategies, Social Security optimization, and sustainable withdrawal frameworks.
Tax coordination: Integrated planning with your CPA to minimize liabilities.
Estate planning support: Working with attorneys to protect and transfer wealth efficiently.
Risk management: Insurance reviews and liquidity planning to safeguard financial security.
Are Wealth Management Fees Worth It?
Whether wealth management fees are “worth it” depends on the value received. For high-net-worth families, even a 1% improvement in tax efficiency can far exceed annual fees. With TriState Wealth Advisors’ fee-only model, clients know that every strategy is designed with their long-term benefit in mind, not influenced by product commissions.
Trends in Wealth Management Fees in 2025
Fee compression: Many advisors now average 0.50%–0.75% for large portfolios.
Unbundled services: Advisors separating investment-only services from planning services.
Fee-only growth: More clients demand fee-only fiduciaries, rejecting commission-driven models.
Technology-driven transparency: Digital reporting makes fees clearer and easier to track.
Comparing Wealth Management Fees
When evaluating advisors, always ask:
Are you a fee-only fiduciary or do you also receive commissions?
What services are included beyond investment management?
What is the full breakdown of wealth management fees, including custodial and fund expenses?
Are there additional charges for tax or estate planning?
At TriState Wealth Advisors, the answer is simple—we are strictly fee-only, and all costs are fully transparent.
Reducing the Impact of Wealth Management Fees
Consolidate assets to qualify for lower tiered pricing.
Use advisors who prioritize low-cost ETFs and institutional funds.
Review fee agreements annually to align with your needs.
Choose a fee-only advisor to avoid hidden commission costs.
Who Benefits Most from Fee-Only Wealth Management?
Clients with complex financial lives typically see the most value. Business owners, executives with equity compensation, and families with $1M+ in investable assets often find that fee-only advisors provide objective, coordinated strategies without sales pressure.
The Role of Market Conditions in Evaluating Fees
As of mid-2025, the S&P 500 trades at valuations above its 30-year average, while interest rates remain elevated. In this environment, professional guidance helps mitigate risks like concentration and inflation. At TriState Wealth Advisors, our fee-only model ensures that our recommendations are focused solely on navigating these challenges for your benefit.
Questions and Answers
What makes TriState Wealth Advisors different from commission-based firms?
We are fee-only fiduciaries, meaning our sole compensation comes from clients—not commissions or product incentives.
What are typical wealth management fees?
Most advisors charge 0.25%–1.25% annually. Our fee-only structure ensures transparency and fairness, with tiered pricing for larger portfolios.
Are wealth management fees negotiable?
Yes. Larger portfolios may qualify for reduced fees under our fee-only model.
What hidden costs exist in wealth management fees?
Some firms charge product commissions or custodial fees. With us, fee-only means no hidden commissions—ever.
Do wealth management fees include planning?
At TriState Wealth Advisors, our fee-only approach includes retirement, tax, and estate planning as part of comprehensive wealth management.
Are fee-only advisors better than commission-based advisors?
Fee-only advisors avoid conflicts of interest. That’s why more high-net-worth families prefer our fiduciary, client-first structure.
If you’re ready to work with a fee-only advisor who provides objective, transparent, and comprehensive guidance, connect with TriState Wealth Advisors today and take control of your financial future.