Flat Fee vs 1% AUM: What That Difference Actually Costs You on a $2M Portfolio

Schedule a call to learn more about Flames Financial Planning: https://flamesfp.com/youtube Learn more about Flames Financial Planning: https://www.flamesfp.com -------- In this video, I run the real numbers on flat fee versus 1% AUM advisory pricing over a full retirement, using a case study of a fictional couple with $2 million invested to show that a 1% fee costs roughly $416,000 more in cumulative fees than a flat $6,600 annual fee, and that gap compounds into about $642,000 more in after-tax wealth by age 100 under the flat-fee structure. I cover why 1% doesn't feel like a bill the way a mortgage or insurance payment does, why the fee grows with the portfolio regardless of whether the service changes, and how the gap widens dramatically at higher assumed returns, hitting roughly $1.7 million at 9%. I also walk through what a 1% advisor would actually need to earn just to match a flat-fee advisor's ending wealth at the same spending, and give three things to actually look for in an advisor, trust and rapport, fee-only compensation, and a flat fee for equivalent service, plus how to run your own fee audit using your last twelve months of statements. If you've never calculated what your advisor's fee actually costs over decades rather than one year, this video shows you exactly how to run that math yourself. -------- This video is for educational purposes only and is not personalized financial advice.