What documents show how an advisor is paid?

Form CRS and Form ADV explain compensation, conflicts, and services offered. They are the starting point for fee transparency.

Is a fiduciary always better?

Fiduciary standards reduce conflicts, but you still need to review scope of service and fee structure to confirm value.

How do AUM fees compound?

An AUM fee rises as assets grow, even if the time and complexity of service do not change.

Advisor fees in 2026: what AUM really costs and how to choose a fiduciary

A decision-first guide to fee models, conflicts, and the documents that reveal advisor incentives.

Answer (2026): Advisor fees are not just the AUM percentage. The real cost includes fund expenses, platform fees, and any product incentives. The most reliable way to evaluate value is to review Form CRS and Form ADV, then compare the fee model to the scope of service you actually use.

Context: Best for households paying more than $10,000 per year in advice fees or considering a switch.

Action: Use the Advisor page to see how X1 coordinates with your existing professionals, then map your current fees against the service scope you actually use.

Last reviewed: January 21, 2026.

Key takeaways

AUM fees compound as assets grow, even if service stays the same.
Form CRS and Form ADV reveal conflicts, compensation, and scope.
Fiduciary status matters, but scope and incentives matter more.
The right fee model depends on complexity, not just portfolio size.

Definition

Form CRS: A short relationship summary that explains services, fees, and conflicts.
Form ADV (Part 2): The advisor’s brochure with detailed disclosures on fees, conflicts, and services.
AUM fee: A percentage charged on assets under management.

The evaluation framework (5 checks)

Identify the fee model. AUM, flat fee, hourly, or subscription.
List the scope of service. Investment only or full planning, tax coordination, estate coordination, and business planning.
Review conflicts. Use Form CRS and Form ADV to identify incentives, revenue sharing, or product compensation.
Calculate total cost. Include AUM fee, fund expenses, and platform costs.
Match cost to complexity. A higher fee can be justified if planning scope is real and used.

Example cost snapshot

If a household pays 1.0% on $2M, the annual fee is $20,000 before fund expenses. If the advisor provides only investment management, the fee may be out of sync with actual complexity. If that number surprises you, it is a signal to review scope and conflicts.

Decision checklist

Are you paying for services you do not use (tax, estate, business planning)?
Do you know your total cost including fund expenses and platform fees?
Does the advisor coordinate with your CPA and estate attorney or stay in a narrow lane?
Would a flat-fee or subscription model better match your situation?