Understanding financial planning fees, investment management costs, and the value of ongoing coordinated financial guidance.
When considering a financial advisor, one of the first questions people ask is, “How much does it cost?”
It’s a reasonable question. But there’s another question worth asking:
What am I actually hiring the advisor to do?
The cost of preparing a financial plan can be very different from the cost of managing an investment portfolio. And both can differ substantially from engaging an advisor to help coordinate the many financial decisions that arise throughout your life.
At Catalano Financial, I believe clients should understand those differences before entering an advisory relationship.
Why Financial Advisor Fees Vary
Financial advisors provide different services and use different compensation arrangements.
Some charge a one-time planning fee. Others charge a percentage of assets under management. Some offer ongoing advisory relationships for an annual fixed fee.
The services may also differ considerably.
An advisor focused primarily on investments may provide portfolio construction, monitoring, and rebalancing.
A comprehensive financial planner may analyze retirement income, cash flow, insurance, investments, estate planning considerations, and other financial matters.
An ongoing wealth advisor may also help coordinate recommendations, monitor implementation, and work with the client’s other professionals.
These relationships involve different responsibilities, so comparing fees without comparing services can be misleading.
What Does Comprehensive Financial Planning Cost?
At Catalano Financial, a comprehensive financial plan costs $6,000 per household.
I use MoneyGuide Elite to help clients evaluate their financial circumstances, consider planning alternatives, and develop recommendations aligned with their goals.
Depending on the client’s needs, the plan may address retirement income, investments, cash flow, insurance, taxes, estate planning considerations, and other relevant financial decisions.
The engagement includes the planning work and follow-up meetings specified in the client agreement.
For someone who wants a detailed financial strategy and is comfortable managing implementation independently, this may be an appropriate solution.
A comprehensive financial plan does not automatically include the broader ongoing oversight, professional coordination, and implementation management associated with Strategic Wealth Partnership.
That distinction is important.
How Much Does Investment Management Cost?
Investment management is commonly priced as a percentage of assets under management, often called an AUM fee.
For example, a 1% annual fee on a $1 million managed portfolio equals $10,000 annually, before any separate fund expenses or other applicable charges.
The amount paid depends on the advisor’s fee schedule, the assets managed, and the services included in the agreement.
At Catalano Financial, investment management is available through an AUM-based arrangement.
Clients who primarily want professional portfolio management may not need a more comprehensive ongoing wealth advisory relationship.
Others may need investment management as one component of a broader financial strategy.
Understanding what is included—and whether additional planning fees apply—is essential when comparing advisory costs.
What Is a Strategic Wealth Partnership?
Strategic Wealth Partnership, or SWP, is Catalano Financial’s approach to ongoing, coordinated financial guidance.
It’s designed for individuals, families, and business owners who want an experienced advisor helping them manage the broader financial planning process.
The relationship may involve investment management, retirement income decisions, insurance considerations, coordination with tax and legal professionals, and ongoing attention to financial priorities.
At Catalano Financial, the SWP process is structured around three planned progress meetings each year:
The Comprehensive Safety Review examines the client’s financial foundation and potential risks.
The Goal Progress reviews progress toward financial objectives and identifies priorities requiring attention.
The Annual Review evaluates the broader financial picture and considers planning needs for the year ahead.
Between meetings, the ongoing relationship may include implementation follow-up, professional coordination, and assistance with financial decisions within the agreed scope of services.
An important part of the process is the Catalano Financial Action Plan, which helps organize recommendations, responsibilities, and target dates.
The objective is to help clients move beyond simply receiving advice toward having an organized process for acting on it.
How Much Does Strategic Wealth Partnership Cost?
At Catalano Financial, Strategic Wealth Partnership begins at $15,000 annually.
The annual fee reflects the scope and complexity of the ongoing advisory relationship.
In the first year, the initial comprehensive financial plan is generally billed separately at $6,000.
That means an illustrative first-year engagement at the starting SWP fee would be:
| Service | First-year fee |
|---|---|
| Comprehensive Financial Plan | $6,000 |
| Strategic Wealth Partnership | $15,000 |
| Illustrative first-year total | $21,000 |
This example assumes the starting SWP fee and does not reflect any applicable Financial Roadmap credit, separate investment management compensation, product compensation, or other charges that may apply.
Investment management may be compensated through an AUM-based arrangement or an agreed fixed-fee structure. The applicable client agreements specify which services are included and how fees are calculated.
What Happens After the First Year?
Financial planning needs change over time.
A client preparing to sell a business may require extensive planning during the initial engagement. In a later year, the client’s needs may be different.
Another client may experience a major life change that requires substantial new planning work.
For that reason, additional comprehensive planning fees are not automatically repeated each year.
At renewal, we evaluate the client’s circumstances, the planning work required, and the scope of the ongoing advisory relationship.
Any additional planning fees or changes to the annual partnership arrangement are discussed and agreed upon as part of that process.
Why Would Someone Pay for Ongoing Financial Advice?
Consider a business owner preparing to sell a company.
The transaction may involve several financial decisions:
- How much of the sale proceeds may be available after taxes and transaction costs?
- How should those proceeds be invested?
- How will the sale affect retirement income?
- Should estate planning documents or ownership arrangements be reviewed?
- Are existing insurance arrangements still appropriate?
- Which decisions require coordination among the CPA, EA, attorney, and other specialists?
The business owner may already have excellent professionals handling individual parts of the transaction.
But someone still needs to help the owner understand how those decisions relate to the overall financial plan.
An ongoing advisory relationship can provide structure for those conversations and help identify responsibilities and next steps.
The value of that relationship depends on the client’s circumstances, the work involved, and how much responsibility the client wants to delegate.
It isn’t necessarily the right solution for everyone.
What More Than 30 Years in Financial Services Has Taught Me
I began my career in financial services in 1992.
Over the years, I’ve worked with clients who needed a specific financial recommendation, clients who wanted professional investment management, and clients whose circumstances required much broader involvement.
One of the most important lessons I’ve learned is that preparing a financial plan and helping a client carry it out are two different responsibilities.
A comprehensive plan requires research, analysis, and recommendations.
An ongoing advisory relationship adds another dimension: revisiting priorities, helping coordinate decisions, monitoring agreed actions, and remaining involved as circumstances change.
I’ve also learned that not every client needs that level of service.
Some people are perfectly capable of implementing a financial plan themselves. Others would rather delegate more of the process to someone they trust.
I believe clients deserve to know which relationship they’re purchasing and what responsibilities their advisor is agreeing to assume.
The goal isn’t to make every client pay for the most extensive relationship. It’s to match the level of guidance to the work that needs to be done.
The question isn’t simply what a financial advisor charges. It’s what responsibilities you’re asking that advisor to take on—and whether the relationship is designed to meet those needs.
Start With the Financial Roadmap®
For prospective clients who aren’t sure what type of guidance they need, Catalano Financial offers the Financial Roadmap®.
The Financial Roadmap is a $500 initial planning experience designed to explore financial goals, priorities, and the circumstances that matter most.
If the client subsequently engages Catalano Financial, the Financial Roadmap fee is credited toward the applicable engagement fees.
This creates an opportunity to understand the client’s needs before determining whether comprehensive planning, investment management, or Strategic Wealth Partnership is appropriate.
How Do You Know Whether the Cost Is Worth It?
The answer depends on what you’re looking for.
If you need answers to specific financial questions and are comfortable implementing recommendations yourself, a comprehensive financial plan may be sufficient.
If you primarily want professional portfolio oversight, investment management may be the better fit.
If you want an experienced advisor helping coordinate your broader financial life, an ongoing wealth advisory relationship may be worth considering.
Before hiring an advisor, ask what services are included, what work is performed between meetings, how the advisor coordinates with outside professionals, and how fees are determined.
Most importantly, understand what responsibilities remain yours and which responsibilities the advisor is agreeing to undertake.
At Catalano Financial, I believe that clarity is the foundation of a productive advisory relationship.
It’s not about the money—it’s the emotion behind the money.
The purpose of financial advice is to help you make informed decisions about the people, responsibilities, and goals that give your wealth meaning.
Ready to Explore Your Financial Planning Options?
Whether you need a comprehensive financial plan, professional investment management, or an ongoing Strategic Wealth Partnership, the first step is understanding your circumstances and what you’re trying to accomplish.
Schedule a complimentary discovery call with Catalano Financial to discuss which relationship may be appropriate for you.
Catalano Financial is an independent registered investment adviser based in The Woodlands, Texas. Fees, services, and responsibilities are governed by the applicable client agreements and regulatory disclosures. Investment outcomes are not guaranteed. Insurance and annuity products may involve separate compensation. Tax and legal services are provided by appropriately qualified professionals.