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SINGH PWM

THE FEE QUESTION

Fee-Based. Fee-Only. Flat Fee. They Sound the Same. They're Not.

Most investors choose an advisor before they understand how that advisor gets paid. By the time the structure becomes clear, the relationship has already started — and the incentives are already in motion.

This page explains the difference between the three most common advisory models — on cost, on services, and on what happens to your money over 20 years.

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A REAL SCENARIO

One Couple. Three Advisors. Very Different Outcomes.

Consider David and Patricia, a couple in their mid-50s living in Scottsdale, Arizona. They've saved $2.5 million — most of it in pre-tax 401(k)s and traditional IRAs. They're still working, earning around $280,000 a year jointly, and retirement is five to ten years away.

Their concern isn't whether they've saved enough. It's what happens next. Taxes on those pre-tax accounts. Medicare premium surcharges. How to draw income without triggering a bracket they didn't plan for. How to leave something for their kids without handing the IRS a windfall.

They meet with three advisors. Here's what happens.

Path 01

Fee-Based Advisor

The conversation starts with portfolio management at 1% annually — approximately $25,000 per year on their $2.5M portfolio. As the conversation deepens, the advisor recommends repositioning part of the portfolio into an annuity for "guaranteed income" and a permanent life insurance policy for "tax-free retirement income." Both may be appropriate in certain situations. Both also pay commissions to the advisor who sells them. The compensation structure changes depending on what David and Patricia decide to implement.

Annual cost

$25,000/yr AUM + commissions

Key conflict

Multiple revenue streams. Fiduciary standard applies inconsistently.

Path 02

Fee-Only (AUM) Advisor

This advisor earns nothing from products — no commissions, no third-party compensation. Her fee is 1% of assets under management. On $2.5M, that's the same $25,000 per year. The conflict profile is narrower: no product incentives, full fiduciary obligation. But the fee scales with the portfolio. If David and Patricia's $2.5M grows to $4.3M over ten years, the annual advisory fee grows to $43,000 — without the scope of work necessarily changing.

Annual cost

$25,000/yr at $2.5M · Grows as portfolio grows

Key conflict

Revenue tied to keeping assets under management.

Path 03

Flat Fee (Fee-Only) Advisor

This advisor also earns nothing from products. What's different is the pricing. A defined annual fee — $10,000 per year — regardless of whether the portfolio is $2M or $4M. Because the fee isn't tied to asset size, there's no financial incentive to discourage decisions that might reduce the managed balance — like Roth conversions, paying off debt, or purchasing a product that genuinely makes sense. The conversation stays focused on what's actually in David and Patricia's interest.

Annual cost

$10,000/yr · Fixed regardless of portfolio size

Key conflict

None tied to assets or products.

THE COST OF PERCENTAGE FEES OVER TIME

Same Portfolio. Same Returns. $756,000 Difference in Fees.

Two households, both starting with $2.5M, both earning 7% annually over 20 years. The only difference: how their advisor charges.

Year 20 Snapshot

Total savings with flat fee: $461,036

Total AUM fees over 20 years

$1,024,887

Total flat fees over 20 years

$268,704

$756,183 saved

That's money that stayed invested and compounded for you.

Illustration assumes a $2.5M starting portfolio growing at 7% annualized return over 20 years. Flat fee assumes $10,000/year subject to 3% annual inflation. AUM fee assumes 1% annually. This is a simplified illustration — actual results will vary.

WHAT YOU'RE ACTUALLY GETTING

The Fee Is Only Part of the Story. Here's What Each Model Actually Delivers.

Most comparisons stop at cost. But the real question is: what does the advisor actually do for that fee — and are taxes, income strategy, and long-term coordination included?

Comparison PointFee-BasedFee-Only (AUM)
Flat Fee (Fee-Only)
Singh PWM
Cost Structure
Annual cost on $2.5M portfolio
$25,000/yr + possible commissions
$25,000/yr (1% AUM)
$10,000/yr flat
Annual cost on $4M portfolio
$40,000/yr + possible commissions
$40,000/yr (1% AUM)
$10,000/yr flat
Fee changes as portfolio grows
Yes
Yes
No
Product commissions possible
Yes
No
No
Fee transparency
Varies
Clear % of assets
Defined annual fee
Fiduciary & Conflicts
Fiduciary at all times
Varies
Yes
Yes
Earns revenue from products sold
Yes
No
No
Incentive to keep assets under management
Yes
Yes
No
Planning Services
Investment management
Included
Included
Included
Retirement income planning
Varies
Varies
Included
Tax planning (year-round)
Varies
Varies
Included
Tax preparation (filing)
Not included
Not included
Included
Roth conversion strategy
Varies
Varies
Included
RMD planning
Varies
Varies
Included
Social Security optimization
Varies
Varies
Included
IRMAA / Medicare planning
Varies
Varies
Included
Cash flow planning
Varies
Varies
Included
Estate & legacy coordination
Varies
Varies
Included
Insurance review
Varies
Varies
Included
Business owner planning
Varies
Varies
Included
Access & Relationship
Direct access to lead advisor
Varies
Varies
Included
Number of clients per advisorOften highOften high
Intentionally limited
Proactive outreach / planning reviews
Varies
Varies
Structured annual cadence

THE FULL PICTURE

The Fee Is What You Pay. This Is What You Get.

A flat-fee fiduciary CFP® and Enrolled Agent does more than manage a portfolio. Here's what coordinated planning across every financial domain actually looks like in practice.

Tax Alpha — The Returns Most Advisors Miss

For a $2M+ household, the difference between an uncoordinated withdrawal strategy and a deliberate multi-year tax plan can exceed $400,000 in after-tax wealth over a full retirement. Not from better investments — from better decisions about when and how money moves. Roth conversions in the right years. Withdrawal sequencing that keeps IRMAA at bay. Social Security timing that minimizes the taxable portion. This is tax alpha — and it compounds every year.

The Conversion Window Is Open Right Now

The years between retirement and age 73 — when income is lowest before RMDs begin — represent the single best opportunity most retirees will ever have to shift pre-tax dollars to Roth at favorable rates. A $2.5M traditional IRA growing at 6% becomes $5.3M by age 73. The first RMD on that balance exceeds $200,000 — taxable as ordinary income on top of Social Security. Proactive Roth conversions during the window permanently reduce that number. Most advisors know this exists. Few model it annually with your actual tax return data.

Planning and Filing, Coordinated — Not Separated

Most retirees have a financial advisor who plans and a CPA who files. The two professionals rarely talk. The result: a Roth conversion the advisor recommends without knowing the full tax filing picture. A return filed without visibility into the multi-year income strategy. The coordination gap is where the most expensive retirement tax mistakes happen. Singh PWM holds both the CFP® and Enrolled Agent credentials — financial planning and tax preparation under one roof, built around the same annual strategy.

The Only Person Paying Us Is You

No annuity commissions. No insurance product revenue. No percentage of assets that grows automatically as your portfolio grows. A flat annual fee — the same whether your portfolio is $2.5M or $5M — means every recommendation is evaluated purely on whether it serves your financial plan. Including recommendations that might reduce the portfolio an AUM advisor would be paid to manage.

WHO THIS IS BUILT FOR

Singh PWM works with pre-retirees and retirees with $1.5M or more in investable assets — primarily households with large pre-tax account balances who need coordinated tax, income, and investment strategy before and during retirement.

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Frequently Asked Questions

THE FIRST STEP IS FREE

Ready to See What Flat-Fee Planning Looks Like for Your Situation?

The Strategic Fit Interview is 30 minutes. No pitch. No obligation. We walk through your accounts, your timeline, and the decisions you're facing — and determine together whether Singh PWM is the right fit.

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