How Fee‑Only Financial Advisors Charge (and How to Judge Fair Pricing)

Fee‑only financial advisors are compensated solely by the clients they serve — not through commissions, kickbacks, or product revenue. Most firms charge an annual fee based on assets under management (AUM), and those fees generally fall somewhere between broad industry ranges while varying widely from firm to firm. Because many advisory firms never publish their fees publicly, high‑net‑worth investors often struggle to compare pricing or interpret whether a fee structure is fair and transparent. This guide explains how fee‑only pricing works, what to watch for, and how Stone Loft Wealth Management in West Chester, PA provides clear, published pricing for the families we serve.

Fee‑Only vs. Fee‑Based: Why the Distinction Matters

One of the first steps in evaluating an advisor’s pricing is understanding how they’re compensated. Although the terms sound similar, “fee‑only” and “fee‑based” represent fundamentally different incentive structures:

• Fee‑only advisors receive compensation exclusively from the client. They do not collect commissions, sell insurance products for a commission, or receive revenue-sharing from mutual funds or annuities.
• Fee‑based advisors may charge fees and receive commissions or other product-based compensation. This can create real or perceived conflicts of interest, depending on the products offered and the advisor’s incentives.

High‑net‑worth individuals often prefer fee‑only advisors because the compensation model naturally aligns the advisor’s incentives with the client’s long-term interests. At Stone Loft Wealth Management, our structure is 100% fee‑only, allowing us to focus on objective advice rather than product distribution.

What AUM-Based Fees Typically Include — and What They Often Don’t

Most registered investment advisors (RIAs) charge a percentage of assets under management. However, investors are often surprised to learn that what’s included in that fee varies dramatically from one firm to another. At many firms, an AUM fee covers investment management but offers little beyond portfolio oversight.

Common elements that may or may not be included at typical firms:

• Included at some firms: portfolio construction, ongoing investment management, rebalancing, and access to digital reporting.
• Only sometimes included: retirement projections, tax‑loss harvesting, high‑level financial planning.
• Often not included: detailed estate planning coordination, equity compensation guidance, multi‑generational planning, charitable strategy design, business owner planning, trust structuring conversations, or direct coordination with attorneys and CPAs.

Stone Loft Wealth Management structures pricing differently: our AUM fee includes both investment management and comprehensive financial planning. This reflects the firm’s emphasis on long‑term, relationship‑driven planning for high‑net‑worth and ultra‑high‑net‑worth families.

Stone Loft Wealth Management’s Transparent Tiered Fee Schedule

One of the firm’s core differentiators is full fee transparency. While most firms do not publish their fees at all, Stone Loft outlines its entire schedule publicly so prospective clients can evaluate it before ever scheduling a conversation. Our tiered fee schedule is:

• 0.30% on the first $5 million
• 0.20% on the next $5 million
• 0.10% above $10 million

Because our practice focuses on high‑net‑worth and ultra‑high‑net‑worth families, this structure is designed to be fair, scalable, and aligned with the level of planning, coordination, and hands‑on service we provide.

You can review our published fee schedule at any time on our Fees page.

How to Evaluate the Actual Cost — Conceptually

Investors often want to translate percentages into real-world annual costs. While we’re not calculating specific dollar amounts here, the process is simple conceptually:

• At $2 million: Apply the first tier of the schedule to understand the annual cost.
• At $5 million: Use the first tier’s full amount to conceptualize the fee.
• At $10 million: Apply the first and second tiers accordingly.

The key insight is that tiered schedules scale down as assets increase — meaning the blended fee decreases as total assets grow. High‑net‑worth families should be particularly aware of this dynamic, as it can meaningfully influence long-term cost efficiency.

Why Most Advisory Firms Don’t Publish Their Fees

It surprises many investors that most RIAs, including those charging premium pricing, do not list their fees anywhere publicly. There are a few reasons for this:

• Lack of transparency protects high pricing: If a firm charges meaningfully above industry averages, it may not want competitors or prospects comparing costs.
• Pricing may vary by client: Some firms quote different fees depending on who is asking, how large the prospect is, or how urgent the prospect’s need appears.
• Published fees can require justification: Disclosing a fee schedule publicly means clients may ask more questions about what the fee includes — and some firms aren’t structured to provide more than basic investment management.

Stone Loft Wealth Management takes the opposite approach: everything is published, simple, and predictable. Our belief is that high‑net‑worth families deserve straightforward pricing, not a negotiation.

What to Ask a Fee‑Only Advisor Before You Sign Anything

Even among fee‑only advisors, pricing structures and service models differ widely. Before engaging any firm — especially for multi‑million‑dollar portfolios — investors should ask:

• What exactly is included in the fee? Investment management only, or full financial planning?
• Is tax planning incorporated year‑round?
• Do you coordinate directly with my CPA and estate attorney?
• How often will we meet, and what does the ongoing review process include?
• Is your fee negotiable? If a firm is willing to negotiate pricing immediately, it may signal inconsistency in how clients are treated.
• Do you receive any other compensation beyond the client fee? Fee‑only means the answer should always be no.
• What is your experience with clients who have my level of assets or complexity?

These questions help determine whether a firm’s fee aligns with its experience, service model, and planning depth. As a boutique, high‑touch practice serving families typically with $5 million or more, Stone Loft Wealth Management provides the kind of comprehensive planning, multi‑generational guidance, and ongoing collaboration that high‑net‑worth households require.

How Stone Loft’s Pricing Compares to the Industry

Many advisory firms charge between broad industry ranges for assets under management. When comparing these typical levels with Stone Loft’s published schedule, the difference becomes clear conceptually: our structure is intentionally designed to deliver ultra‑high‑net‑worth‑level service at a lower, more transparent cost. Because our firm maintains a lean client roster and a high level of direct advisor involvement, clients receive deep planning without the premium pricing common at national firms or private banks.

Investors can explore our firm’s philosophy, background, and service model further on the About page.

Want a Transparent Pricing Conversation?

Understanding what you pay — and what you receive — is one of the most important steps in choosing the right advisor. If you want straightforward pricing, comprehensive financial planning, and a long‑term partnership with a fee‑only fiduciary, Stone Loft Wealth Management is built for exactly that.

View our full published fee schedule and book a no‑commitment discovery call today.