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.
Wealth Calculator
AUM Fee Calculator — What 1%/yr Really Costs
Plug in your portfolio, contribution, return, and time horizon. See the year-by-year fee drag and the terminal-wealth gap vs a flat-fee planning tool.
Key facts
Typical AUM fee
0.8–1.2%/yr
Cost on $1M @ 1%
$10,000/yr — and growing
30-yr terminal-wealth gap (typical)
$700K–$1M
Robo-advisor benchmark
~0.25%/yr
The Real Calculator
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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, and the year before retirement decumulation. For these, hire a fee-only fiduciary CFP — flat-fee or hourly engagements typically beat percentage-of-assets relationships.
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A calculator alone tells you the payment. PeakWorth tells you what that payment costs your retirement — and how every change ripples through the next 30 years of your finances.
Frequently asked questions
What's a typical AUM fee?
Traditional advisors charge 0.8–1.2%/yr on AUM. Robo-advisors charge ~0.25%. Empower's wealth management charges 0.49–0.89%/yr.
How much does a 1% fee really cost over 30 years?
On $500K with $30K/yr contributions at 7% real, a 1% AUM fee subtracts roughly $700K–$1M of terminal wealth versus a flat-fee tool.
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