Quoted: Carson McLean on AUM Fees in ComparisonAdviser

Recently, I was quoted in a ComparisonAdviser article exploring the question: Is a 1% financial advisor fee still worth it as your portfolio grows?

It’s a common—and important—conversation. The traditional 1% AUM model has long been considered the industry standard, but more investors are asking: Does the cost still make sense when your needs haven’t changed, but your portfolio has?

As I noted in the piece:

“At $1.5 million, the average advisory fee is around 0.94%—that’s $14,100 a year. At $5 million, the average is 0.84%—that’s $42,000 a year. The complexity does not triple from one client to the next. The cost does. And that’s the problem.”

I also emphasized that high fees don’t always equate to high value:

“Most clients are told they’re getting investment management, planning, and advice, but often the real deliverable is just portfolio oversight and quarterly check-ins. For $10,000 or $20,000 a year, that’s a bad deal unless the advisor is integrating taxes, estate planning, behavioral coaching, and real decision-making support.”

At Altruist Wealth Management, we believe great advice shouldn’t scale with asset size—it should scale with the work being done. That’s why we charge a transparent flat fee rather than a percentage of your assets.

Bio

Carson McLean, CFP® is the founder of Altruist Wealth Management, a flat-fee, fiduciary financial planning firm serving clients virtually nationwide. He offers tax-aware, evidence-based investment management and comprehensive retirement planning for individuals and families with over $1M in investable assets.