You'll pay about $5,000 to $7,500 a year for a financial advisor if you have a $500K portfolio. That's the range for the middle 50% of firms based on fee schedules from thousands of SEC-registered advisory firms. The median comes in at roughly $6,875 per year.
The typical fee breakdown
Fees at $500K depend partly on the type of firm you work with. Solo practitioners tend to charge less, while larger firms with bigger teams charge more. Here's what we found across thousands of firms that disclosed fee data at the $500K level:
| Firm Type | Median Annual Fee | Effective Rate |
|---|---|---|
| Solo practitioner | $5,000 | 1.00% |
| Small firm (2–10 advisors) | $6,250 | 1.25% |
| Mid-size firm (11–50) | $6,500 | 1.30% |
| Large firm (50+) | $7,500 | 1.50% |
Overall, the 25th percentile is $5,000 and the 75th percentile is $7,500. So if you're getting quoted above $7,500 for a $500K portfolio, you're in the top quartile of pricing and should make sure the extra cost comes with extra value.
Solo vs. large firms
The difference between a solo advisor and a large firm is about $2,500 a year on a $500K portfolio. That gap is real money—over 10 years, it's roughly $28,000 in fees alone, not counting the compounding you miss out on.
But cheaper doesn't automatically mean better. Large firms often provide deeper bench strength: multiple specialists, more sophisticated tax planning, in-house estate attorneys. A solo advisor gives you a direct relationship with the person managing your money, but if they're out sick, there may be nobody covering for them.
What matters is whether the services you're getting match what you're paying. A solo practitioner at $5,000/year who handles your investments and basic planning might be the right fit. Or a large firm at $7,500/year that coordinates your taxes, estate plan, and insurance might save you more than the fee difference.
Planning fees on top of investment management
Some advisors charge separately for financial planning—on top of their AUM fee. Among the thousands of firms that charge a separate planning fee alongside investment management, the median total at $500K is about $5,000.
This matters because a firm quoting 1.0% for investment management ($5,000) might also charge $2,000–$5,000 for a financial plan in the first year. That brings your real first-year cost to $7,000–$10,000. Always ask whether planning is included in the AUM fee or priced separately.
| Fee Structure | Median Annual Cost |
|---|---|
| AUM fee only | $6,875 |
| AUM + separate planning fee | $5,000 |
The medians look close, but the range for planning add-ons is wide. Some firms charge a modest $500 planning fee while others charge $10,000+. Ask for the full picture before you commit.
What you get for your money
At $500K, most advisors provide a fairly standard set of services:
- Portfolio management: Building, rebalancing, and monitoring your investments
- Retirement projections: Will your money last? What withdrawal rate is safe?
- Tax efficiency: Tax-loss harvesting, asset location across account types
- Regular check-ins: Quarterly or semi-annual reviews, plus access when life changes
At $500K you're above the minimum for most advisors, so you have options. You can be selective. Look at several fee quotes, compare what's included, and don't be afraid to ask whether the rate is negotiable. Many advisors will work with you, especially if you're likely to add assets over time.
Data source: Fee schedules from SEC Form ADV Part 2A filings for thousands of firms with disclosed fee data at the $500K portfolio level. Fees shown are from official regulatory disclosures.