What “Flat Fee” Means — and What We Actually Charge
Firms advertise flat fees to mean at least three different things. Here is the plain version of ours: the fee is set once, from the value of your account at the start of the relationship, and it does not rise when the market does.
Who This Is For
Anyone comparing advisory fee models and finding that the labels do not line up with the schedules underneath them.
- Investors watching an AUM fee compound alongside a growing portfolio
- Anyone who asked what they pay and did not get a number
- Prospects trying to compare two firms that both say “flat fee”
What's Included
A fixed annual fee, calculated by multiplying the applicable percentage by the value of your account at the inception of the relationship.
- Once set, it does not change when markets rise
- Recalculated only if you add or withdraw materially (10% threshold)
- Two one-time reductions take a 0.80% starting rate to 0.50%
- Planning included at no additional cost
- Inflation adjustment after year five, disclosed in advance
Why WealthEQ
- The full schedule is published, not quoted on request
- Fee-only — no commissions, no revenue sharing
- Fiduciary at all times
- Incentives tied to tenure and plan completion, not asset gathering
Three Questions That Get Conflated
Most fee conversations collapse three separate questions into one word. Separating them makes it obvious what any firm is actually offering.
| Question | Common Answers | WealthEQ |
|---|---|---|
| Who pays the advisor? | Fee-only, fee-based, commission | Fee-only — compensated solely by clients |
| How is the fee calculated? | Percentage of assets, fixed fee, hourly, subscription, performance | Percentage applied once, at inception |
| Does it reprice over time? | Recalculated each period against current balances, or set once | Never for market moves. Recalculated only if you add or withdraw materially |
| Nearly every firm competes on the first two questions. The third is rarely named, and it is where the difference compounds. | ||
Our Fee Is Not the Same for Everyone
Some firms use “flat fee” to mean one price regardless of account size — the same dollar amount whether a household has $1 million or $10 million. That is not our model, and we would rather say so than let the label imply it.
Our fee is determined at the inception of the relationship by the value of the account:
| Account Value at Inception | Rate | Starting Annual Fee |
|---|---|---|
| $1,000,000 | 0.80% | $8,000 |
| $5,000,000 | 0.80% | $40,000 |
| $10,000,000 | 0.75% | $75,000 |
| What is fixed is the fee over time, not the fee across clients. | ||
See the full published schedule for all breakpoints across Personal CFO, Outsourced CIO, and captive insurance.
What the Recurring Recalculation Actually Costs
The difference is the word “again”
A conventional assets-under-management fee is recalculated against your current balance every billing period. A firm charging one percent on $1 million bills $10,000 in year one. If that portfolio doubles over a decade, the same firm bills $20,000 — for a relationship that has not necessarily changed in scope, complexity, or hours worked.
There is a defense of this: the advisor bears more responsibility as the balance grows. There is also an obvious problem. The increase is automatic and untethered from anything the client can observe.
The conflict nobody mentions
A fee recalculated against current balances creates a quiet conflict on every decision that would reduce those balances. Paying off a mortgage. Funding a business. Buying property. Making a large gift to children or charity.
None of these is necessarily the wrong choice, and a good advisor recommends them when they are right. But under the recurring model, each one costs the advisor money in perpetuity. We would rather not have that sitting on the table during the conversation.
What we do instead
The applicable percentage is multiplied by the value of your account at the inception of the relationship. The resulting dollar figure is the fee. Market appreciation does not change it.
It is recalculated in one circumstance: when the assets we manage or advise on change materially for a reason other than performance. Transferring in a portfolio held elsewhere, an inheritance, or the proceeds of a business sale all reset the fee base. Routine saving does not — the threshold is 10% of the current fee base, aggregated over a rolling twelve months, so ordinary contributions and dollar-cost averaging fall well below it. Your fee in dollars rises when you add assets, but because a single percentage applies to the entire fee base, the rate on the whole relationship generally falls — and any reductions you have already earned carry over to the new rate rather than resetting.
The Two Reductions
Complete a wealth plan within five years: fee reduced by 0.10%, one time.
Stick to the investment plan for five years: fee reduced by a further 0.20%, one time.
Together those take a 0.80% starting rate to 0.50%. Both are structural, not discretionary, and both are disclosed in advance.
What still adjusts, and why
We are not claiming the fee is frozen forever, and a firm that claims that should be asked how it plans to absorb two decades of cost inflation.
Personal CFO fees adjust for inflation after year five. Outsourced CIO fees adjust for inflation after year three. Captive insurance fees carry no inflation adjustment at all, because premium additions already grow the fee in dollar terms — and those fees are recalculated for premium, not for investment returns.
The principle underneath all three: the fee should move when the work moves, not when the market does.
What we do not charge for
- Financial planning — included in the Personal CFO fee
- Product commissions — we sell no products
- Revenue sharing or platform compensation — we accept none
- Performance fees — our compensation does not vary with investment results
- Annual all-advisor meetings for OCIO clients — rebated up to $5,000
How to check any firm’s claim
Ask three questions and the label stops mattering:
- Do you receive any compensation from anyone other than me? That answers fee-only.
- Show me the schedule in dollars for my account size. That answers how it is calculated.
- If my portfolio doubles and nothing else changes, what do I pay? That answers whether it reprices — and it is the question almost nobody asks.
Every firm’s answers are in its Form ADV Part 2A, which is public. Ours is here.
Frequently Asked Questions
What is the difference between a flat fee and a fixed fee?
"Fixed fee" is the regulatory term. Form ADV, the disclosure document every registered investment advisor files, asks how the advisor is compensated and provides separate categories for a percentage of assets under management, fixed fees, hourly charges, subscription fees, commissions, and performance-based fees. There is no "flat fee" category. "Flat fee" is an industry marketing term with no standard definition, which is why two firms can both advertise flat fees and charge in completely different ways.
Is WealthEQ's fee the same for every client?
No, and any firm claiming otherwise should be asked to show its schedule. WealthEQ's fee is determined at the inception of the relationship by the value of the account: a $1,000,000 relationship starts at $8,000 per year and a $10,000,000 relationship at $75,000. What is fixed is the fee over time, not the fee across clients.
So is this an AUM fee or not?
It is asset-based at inception and fixed thereafter, with one exception. The applicable percentage is multiplied by the account value at the start of the relationship, and the resulting dollar amount does not change when markets rise or fall. It is recalculated if the assets we manage or advise on change materially for a reason other than performance — for example, transferring in a portfolio from another manager, an inheritance, or the proceeds of a business sale. A conventional assets-under-management fee is recalculated against the current balance every billing period, so it rises automatically with the portfolio. That recurring recalculation is the difference.
Why does that distinction matter?
Under a conventional AUM fee, a portfolio that doubles doubles the fee, without any additional work necessarily being performed. It also creates a quiet conflict on every decision that would reduce the balance, such as paying off a mortgage, funding a business, buying real estate, or making a large gift. A fee fixed at inception removes the automatic escalation and neutralizes that conflict.
Does WealthEQ's fee ever increase?
Yes, in two defined circumstances, both disclosed in advance. Personal CFO fees adjust for inflation after year five and Outsourced CIO fees after year three. Captive insurance fees are recalculated when premium is added to the portfolio, because that expands the mandate. Fees are never increased because markets rose.
How can the fee go down?
Personal CFO clients receive a one-time 0.10% reduction for completing a wealth plan within the first five years and a further one-time 0.20% reduction for sticking to the investment plan for five years, taking a 0.80% starting rate to 0.50%. Outsourced CIO fees step down in each of the first three years, from 0.500% to 0.450% to 0.400% at the entry breakpoint.
Is WealthEQ fee-only?
Yes. Fee-only describes who pays the advisor, and WealthEQ is compensated solely by its clients. It receives no commissions, no revenue sharing, no referral fees, and no compensation of any kind from product providers. That is a separate question from how the fee is calculated.
Are there separate financial planning fees?
No. Planning is included in the Personal CFO fee. There are no hourly charges, planning retainers, or product commissions.