What Does an Advisory Fee Actually Cost in Dollars?
Percentages hide the price. Enter any account balance and any fee percentage, and this tool shows the dollar cost — per year, and as quarterly and monthly arithmetic equivalents.
Fee Arithmetic
Every figure above is entered by you. Ask any firm — including us — for its actual fees in writing before comparing.
This tool performs fee arithmetic only. It does not project investment performance and does not represent Davies Wealth Management’s fee schedule. Dollar figures are today’s balance × the percentages you entered. No investment returns, growth, or future values are assumed or shown.
Why Ask for Fees in Dollars?
Most investors focus on picking the right investments. But one of the most controllable inputs to long-term results is cost. Advisory fees are typically charged as a percentage of assets and deducted from the account — so a percentage that sounds small can be a meaningful dollar amount at higher balances.
Industry research, including Vanguard’s published work on advisory costs, consistently finds that fee differences compound into material differences in outcomes over long periods. That is why the first question to ask any firm is simple: “What will I pay, in dollars, this year — across every fee component?”
Fee-Only Advisors
Fee-only advisors are compensated solely by the fees their clients pay, typically as a percentage of assets managed. They do not receive commissions, referral fees, or revenue-sharing from product companies, and they are held to a fiduciary standard.
Davies Wealth Management is a fee-based fiduciary: most of our compensation comes from client-paid advisory fees, and we may also receive a commission when a plan calls for an insurance or annuity product. We act as a fiduciary when providing investment-advisory services, and we disclose compensation-related conflicts.
Commission-Based Advisors
Commission-based advisors earn income from the financial products they sell. While many are ethical professionals, the compensation model creates inherent conflicts of interest. Two products may serve you equally well, but one pays the advisor a higher commission. The “suitability” standard these advisors follow is less rigorous than the fiduciary standard, requiring only that a recommendation be appropriate rather than optimal.
Want Your Real Numbers Instead of Arithmetic?
Davies Wealth Management is a fee-based advisor serving clients in Stuart, Florida and nationwide, acting as a fiduciary when providing investment-advisory services. Schedule a complimentary consultation and we’ll put our fees — and every other cost component — in writing.
This tool performs fee arithmetic only: it multiplies a user-entered balance by user-entered percentages. It does not project investment performance, does not assume or display investment returns or future portfolio values, and does not represent Davies Wealth Management’s fee schedule. It is for educational purposes only and does not constitute investment advice. Davies Wealth Management is a fee-based, Florida-registered investment adviser and acts as a fiduciary when providing investment-advisory services. Registration does not imply a certain level of skill or training. Always consult a qualified financial professional before making investment decisions.
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