See the gap on your numbers
Year-by-year AUM fee drag vs a flat-fee planning tool. Edit any input.
Real, after inflation
Typical 0.8–1.2%
USD per year
Terminal wealth — flat fee
$6,778,888
Terminal wealth — 1.00% AUM
$5,385,796
Foregone wealth from fees
$1,393,092
after 30 years
Year-by-year fee drag table
| Year | Annual AUM fee | AUM portfolio | Flat-fee portfolio | Cumulative gap |
|---|---|---|---|---|
| 1 | $5,300 | $561,800 | $566,471 | $4,671 |
| 2 | $5,918 | $627,308 | $637,595 | $10,287 |
| 3 | $6,573 | $696,746 | $713,697 | $16,951 |
| 4 | $7,267 | $770,351 | $795,127 | $24,775 |
| 5 | $8,004 | $848,372 | $882,256 | $33,884 |
| 6 | $8,784 | $931,075 | $975,485 | $44,411 |
| 7 | $9,611 | $1,018,739 | $1,075,240 | $56,501 |
| 8 | $10,487 | $1,111,664 | $1,181,978 | $70,314 |
| 9 | $11,417 | $1,210,163 | $1,296,187 | $86,024 |
| 10 | $12,402 | $1,314,573 | $1,418,391 | $103,818 |
| 11 | $13,446 | $1,425,248 | $1,549,149 | $123,902 |
| 12 | $14,552 | $1,542,562 | $1,689,060 | $146,498 |
| 13 | $15,726 | $1,666,916 | $1,838,765 | $171,849 |
| 14 | $16,969 | $1,798,731 | $1,998,950 | $200,219 |
| 15 | $18,287 | $1,938,455 | $2,170,347 | $231,892 |
| 16 | $19,685 | $2,086,562 | $2,353,742 | $267,180 |
| 17 | $21,166 | $2,243,556 | $2,549,975 | $306,419 |
| 18 | $22,736 | $2,409,969 | $2,759,944 | $349,975 |
| 19 | $24,400 | $2,586,367 | $2,984,611 | $398,244 |
| 20 | $26,164 | $2,773,350 | $3,225,005 | $451,655 |
| 21 | $28,033 | $2,971,551 | $3,482,226 | $510,675 |
| 22 | $30,016 | $3,181,644 | $3,757,453 | $575,809 |
| 23 | $32,116 | $3,404,342 | $4,051,945 | $647,603 |
| 24 | $34,343 | $3,640,403 | $4,367,052 | $726,649 |
| 25 | $36,704 | $3,890,627 | $4,704,217 | $813,590 |
| 26 | $39,206 | $4,155,864 | $5,064,983 | $909,118 |
| 27 | $41,859 | $4,437,016 | $5,451,002 | $1,013,986 |
| 28 | $44,670 | $4,735,037 | $5,864,043 | $1,129,006 |
| 29 | $47,650 | $5,050,940 | $6,305,997 | $1,255,058 |
| 30 | $50,809 | $5,385,796 | $6,778,888 | $1,393,092 |
| Total | $664,299 | $1,393,092 | ||
Estimates only. Assumes fees come out of returns each year and the flat fee comes out of contributions before they compound. Actual results vary with market returns, tax treatment, and contribution timing.
Why the AUM model compounds against you
A 1%/yr fee sounds small. It isn't. The fee comes out of the asset base every single year, so you lose both the dollars paid in fees and all the future compounding on those dollars. On a $500K portfolio contributing $30K/yr at a 7% real return over 30 years, the gap between a 1% AUM relationship and a flat-fee planning tool is typically about $1.39M of terminal wealth.
The AUM model also scales with your wealth even when the underlying work doesn't. A $500K portfolio at 1% costs $5K/yr. A $2M portfolio at 1% costs $20K/yr — for the same software-driven planning. A flat fee stays flat.
When a human advisor IS worth it
Concentrated stock with vesting cliffs, business sales, equity comp at IPO, blended families, special-needs trusts, divorce settlements, the year before retirement decumulation, and any moment where the wrong move costs more than years of fees. For these, hire a fee-only fiduciary CFP — NAPFA and XYPN are good directories. Flat-fee or hourly engagements typically beat percentage-of-assets relationships.
Frequently asked
How accurate is this calculator?
It uses the standard fee-drag approximation: AUM fees reduce the net annual return on the asset base, flat fees come out of contributions before they compound. Real-world results depend on market returns, tax treatment, and contribution timing — but the directional gap is well-supported by every academic study of investment fees.
What's a typical AUM fee?
Traditional advisors charge 0.8–1.2%/yr on assets under management, with a sliding scale that drops slightly above $1M. Robo-advisors charge ~0.25%. Empower/Personal Capital's wealth management charges 0.49–0.89%/yr.
What flat fee should I use?
PeakWorth's Navigator tier is $119.88/yr (the monthly plan, annualized). Many flat-fee fiduciary CFPs charge $2,500–$7,500/yr for ongoing planning. Either way, the fee doesn't grow as your portfolio does.
Should I fire my advisor?
Run your own numbers above. Then ask honestly what your advisor does that software can't. If the answer is 'mostly rebalances index funds,' the math is one-sided. If it's real planning work for a complex situation, the fee may be earned.
Build the plan without the fee drag
PeakWorth runs a year-by-year projection, computes your FI age, and explains every tradeoff — at a flat price that doesn't grow with your portfolio.
Start freePeakWorth provides educational projections, not financial advice. We are not a registered investment advisor, broker-dealer, tax preparer, or attorney. Consult a licensed professional before making major financial decisions. Read full disclosures