The Three Fee Structures You'll Encounter

1. Flat fee for ongoing planning. $5,000–$15,000 per year, scaled by complexity rather than portfolio size. For a typical $1M–$3M household, most flat-fee advisors land at $7K–$10K/year. Includes multi-year tax projection, withdrawal sequencing, Social Security analysis, ongoing review.

2. Hourly project fees. $250–$500/hour. Best for one-time projects: a Roth conversion analysis, a Social Security claiming review, a retirement readiness check. A typical comprehensive one-time plan runs $3K–$8K.

3. AUM (assets under management) fees. 0.7%–1.25% of portfolio per year. The most common industry model. For a $2M household, this is $14K–$25K/year, every year, regardless of how much planning is actually done. Includes investment management plus typically lighter planning services.

How the Cities Differ

Scottsdale and Paradise Valley. Highest concentration of AUM-fee firms in Phoenix metro. Average AUM rate runs 0.9%–1.1%. Client demographic skews higher-net-worth, which supports the AUM model. Several boutique flat-fee firms exist as alternatives.

Phoenix (proper). Mix of large firms (many national brands), AUM-fee RIAs (often 0.8%–1.0%), and a growing number of flat-fee planners. Hourly advisors via Garrett Planning Network are well represented.

Chandler. Mix similar to Phoenix. Lower average AUM rate (0.75%–1.0%) reflecting the family-oriented client base. More flat-fee options.

Surprise. Smaller advisor count overall. Many practices specialize in 55+ retirement community planning. Often higher concentration of insurance- and annuity-focused practices that title themselves “retirement advisors” — verify fiduciary standard carefully.

Paradise Valley. Highest AUM rates in Phoenix metro (often 1.0%+). Smaller advisor pool, concentrated wealth management for ultra-high-net-worth clients. May not be the right fit for $1M–$3M households who don't need that level of service.

The 25-Year Lifetime Cost Comparison

The headline rate matters less than the cumulative cost over a 25-year retirement. Two examples for a $2M household:

AUM at 1%. $20K/year × 25 years = $500K cumulative fees. Adjusts upward as the portfolio grows. Paid every year regardless of how much planning work was done.

Flat fee at $8K/year. $8K × 25 years = $200K cumulative fees. Roughly flat (with inflation adjustments). Paid for the planning work done.

Lifetime difference. Roughly $300K for the same household, both with planning service. The city you're in barely affects this comparison; the structure does.

What's Actually Included Varies by Firm

Headline fees rarely include everything. Watch for:

• Custodial fees. Charged separately by the brokerage. Usually small (Schwab, Fidelity, Vanguard charge little for advisory accounts), but sometimes hidden inside the AUM fee.
• Tax preparation. Usually NOT included. Charged separately or referred out.
• Tax projection / planning. Sometimes separate, sometimes included. Worth asking explicitly.
• Estate planning document drafting. NOT included; the advisor refers to an estate attorney.
• Insurance product commissions. If the advisor is dual-registered, commissions on annuities or insurance are paid in addition to the AUM fee. Watch for this.

Local vs. Virtual

Most retirement planning works fine virtually. The work is quantitative; the deliverables are documents; the ongoing communication is scheduled video calls. Choosing an advisor outside Phoenix metro often produces a better match without compromising service quality, and may lower costs.

That said, if local relationships matter to you, all the structures above are available locally. NAPFA, the CFP Board directory, and Garrett Planning Network all support city-based search.

Common Mistakes

• Comparing advisor fees by hourly rate or AUM percentage in isolation, without computing 25-year cumulative cost.
• Assuming Scottsdale advisors are higher-quality because they're higher-cost.
• Treating geographic proximity as a primary filter when most retirement planning works fine virtually.
• Forgetting to factor what's in scope (planning + tax vs. portfolio-only).
• Missing dual-registration commissions on top of the AUM fee.

The Bottom Line

The cost ranges in Scottsdale, Phoenix, Chandler, Surprise, and Paradise Valley look similar at the headline level. The lifetime cost depends almost entirely on which structure you choose — flat fee, hourly, or AUM — and what's actually in scope.

For a $1M+ household over a 25-year retirement, the difference between a flat-fee structure and a 1% AUM structure is hundreds of thousands of dollars. The city decision rarely changes that math; the structure decision always does.