Pricing
Crewson Financial: Simple, transparent pricing
A typical financial plan will cost between $2,500 and $4,000 depending on the complexity of the client’s situation.
My fee structure is simple and transparent. You have two options:
Hourly project: My rate is $250 / hour
Fixed-fee project: We can remove the uncertainty by agreeing on a price upfront
The initial plan is all most clients will need. For those wanting to connect on a recurring basis after the initial project concludes, my hourly rate will apply.
I operate an “advice-only” firm. Be sure to read how I work with my clients.
See below for the top 5 reasons I prefer this model over the traditional AUM approach
Reason #1: Cost Effectiveness
Traditional Model
Traditional wealth management firms often charge a percentage of assets under management (an “AUM” fee.) At first glance, it seems small. Over time, it can quietly erode your wealth. Here’s an example from a real firm:
| Portfolio Tier | Annual Fee |
|---|---|
| First $2.5m | 1.250% |
| Next $2.5m | 1.000% |
| Next $5.0m | 0.750% |
| Above $10m | 0.625% |
| Portfolio Size | Blended Fee (%) | Annual Fee ($) |
|---|---|---|
| $1,000,000 | 1.25% | $12,500 |
| $2,000,000 | 1.25% | $25,000 |
| $3,000,000 | 1.21% | $36,250 |
| $4,000,000 | 1.16% | $46,250 |
| $5,000,000 | 1.13% | $56,250 |
As the above example shows, those seemingly small AUM percentages add up to real dollars. And you pay them Every. Single. Year. As your portfolio increases, so does your fee.
These fees are just for the investment advisor. Additional fees will be charged by the funds they invest your money into. And don’t forget taxes and trading costs…
Crewson Financial
Unlike the annual drain of the AUM charge, I charge a one-time fee for the creation of a financial plan.
Even in year 1, my fees are often significantly lower than those paid under an AUM model. In future years, most clients will pay me nothing! Those wanting ongoing check-ins will typically pay for only a handful of hours - which is significantly less than the initial plan creation.
My pricing is based solely on the work required. Planning for a $2M portfolio can often take the same effort as planning for a $4M portfolio. You won’t pay more simply because you’ve saved more.
Reason #2: Long-term Impact
Not convinced yet? Let’s look at how the impact of fees compound over time on an illustrative $1m portfolio.
Scenario A: 8.0% net annual return
Scenario B: 7.0% net annual return (you lose 1.0% to fees)
After 30 years, Scenario A results in a portfolio that is a whopping 32% larger than Scenario B ($10.1m vs $7.6m)!
Many retirees base their annual spending as a percentage of their portfolio value. So these extra gains result in more money to spend and enjoy.
You worked too hard for your money to miss out on those gains.
Portfolio Value over Time (millions of $)
Reason #3: Simplicity
To justify the high fees, the traditional advisor is likely going to pursue a more exotic and actively managed investment strategy. After all, why would clients pay tens of thousands of dollars each year just to buy-and-hold index funds?
These strategies often sound sophisticated, but the data tells a different story. According to SPIVA’s research, only ~5% of actively managed equity funds beat their benchmark over 20 years on a risk-adjusted basis (see report 1b).
Simple low-cost portfolios are not only easier to manage, but they often generate higher returns after fees. My goal is to help you achieve simplicity so you get the best of both worlds.
Reason #4: Transparency
Traditional wealth managers typically automatically deduct their fee from your portfolio. Out of sight, out of mind. This makes it easy for many people to miss how much they are actually paying.
In contrast, at Crewson Financial we will agree on a fee upfront, and I’ll invoice you directly for this amount at the end of the project. No hidden fees. No surprises.
Reason #5: Conflicts of Interest
The traditional AUM-based advisor is paid based on the size of the portfolio that they manage. Under this construct, they may be reluctant to advise you to take assets out of your investment portfolio and pay down your mortgage. Similarly, they have extra incentive for you to rollover a 401(k) into the IRA that they manage.
Because I don’t manage assets or sell products, my recommendations are based solely on what’s best for you — not on how much you invest or what you buy.
It’s impossible for any commercial relationship to completely eradicate all conflicts of interest, but I believe the hourly / fixed-fee model minimizes them.