Weigh an advisor fee against the value they add, and see the break-even outperformance needed.
An advisor charging 1% must add 1% a year in net return, tax efficiency or avoided mistakes simply to break even. Framed that way the question becomes measurable rather than a matter of preference. Advice can be worth well above its fee through behavioural coaching alone, but the break-even figure is the right starting point for the conversation.
Advisor Fee Impact
Break-even outperformance equals the fee: advice must add at least its own cost in return
Break-even outperformance equals the fee: advice must add at least its own cost in return An advisor charging 1% must add 1% a year in net return, tax efficiency or avoided mistakes simply to break even. Framed that way the question becomes measurable rather than a matter of preference.
Advice can be worth well above its fee through behavioural coaching alone, but the break-even figure is the right starting point for the conversation.
This calculator takes 4 inputs: Portfolio value, Advisor fee, Years advised, Expected gross return. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.