How much do advisor fees really cost?

When markets are strong, a 1% advisory fee can hide in good returns. Over decades, that same 1% can quietly claim a large share of your ending portfolio.

Compare advisor vs. low‑cost index investing

This calculator isolates the effect of annual fees. It assumes the same before‑fee market return for both paths; the only difference is what you pay in ongoing fees.

Starting portfolio balance Annual contribution Leave blank or 0 if you're not adding new money (for example, already retired). Years Expected market return (before fees, %) Advisor fee (% of assets per year) Around 1% per year is common for full‑service advisors. Index fund cost (% per year) Many broad Vanguard index funds are around 0.05% or less.

Educational only. Real‑world returns, taxes, trading costs, and advisor behavior will differ. This shows fee drag in isolation, not the full value (or cost) of advice.

How to read this

The key question isn’t “Did my portfolio grow?”—it’s “How much of that growth am I keeping after fees?” When you compare a 1% advisory fee plus fund costs against a low‑cost index fund, the percentage gap is small, but it applies to the entire balance every year.

Use this tool to get a feel for:

• How much more you might have with a lower‑fee approach if markets do reasonably well.
• How sensitive the gap is to your starting balance, contributions, and time horizon.
• Whether ongoing fees feel worth it given the planning and behavioral help you receive.

Some people gladly pay for a human advisor; others prefer a low‑cost robo‑advisor or a simple, do‑it‑yourself plan. The goal here is not to tell you what to do, but to make the trade‑offs visible so you can decide deliberately.