When people think about the value of a financial advisor, they often focus only on the fees. And while fees absolutely matter, the truth is you could always find someone cheaper if that’s all you’re looking for. The real question is: what are you getting for the fee you pay?
For many families I meet, the answer is frustrating: not much more than basic investment management. That means paying huge costs to big firms while missing out on critical areas like tax planning, proactive retirement distribution design, and strategies to preserve wealth across generations.
That’s where the real cost comes in, and it’s often measured not just in percentage points, but in hundreds of thousands of dollars or more left on the table.
The Cost of High Fees Alone
Let’s start with the basics. Assume:
- Starting portfolio: $500,000
- Assumed market return: 7% annually (conservative)
- Timeframe: 20 years
Advisor A (typical big-firm model):
- Advisory fee: 1.00%
- Investment product expense ratios: ~0.75%
- Total Cost: 1.75%
- Net return: 5.25%
- Future value: ~$1,391,000
Kraft Capital’s approach:
- Advisory fee: 0.95% (maximum fee, drops as assets increase)
- Investment product expense ratios: only 0.18-0.29%
- Total Cost: ~1.22%
- Net Return: 5.78%
- Future value: ~$1,538,000
That’s about $147,000 more in your pocket just by controlling costs. But the thing is: that’s only the beginning.
Where the Real Value Shows Up
Lower fees are important, but what moves the needle even more are the areas most traditional advisors don’t touch:
1. Tax Preparation and Planning
Taxes are often the single largest expense in retirement. Many investors miss opportunities to:
- Reduce capital gains taxes through smart asset location.
- Minimize RMDs with Roth conversions.
- Save thousands annually by coordinating deductions and credits.
Because I personally prepare taxes for clients, I see the full picture, not just the investment accounts. That can create real, measurable value every year.
2. Comprehensive Financial Planning
True planning goes beyond choosing mutual funds. It includes:
- Retirement distribution strategies that reduce risk and taxes.
- Social Security optimization.
- Estate planning and future planning for insurance and long-term care
- A custom portfolio designed with your goals & needs in mind.
Without this, you may be leaving money (or protection) on the table without realizing it.
3. Behavioral Coaching and Peace of Mind
Markets are chaotic. Having a clear plan and a trusted professional to talk to can keep you from making emotional decisions that create permanent damage.
Why This Matters
The difference between a traditional advisor and a true financial planner isn’t just fees. It’s the combination of lower costs + higher value:
- Lower fees can compound into six figures or more over time.
- Tax-smart planning can create savings every year.
- Integrated advice means your investments, taxes, and retirement plan work together, not against each other.
What a Free Consultation with Kraft Capital Includes
If you’ve ever wondered whether you’re getting full value for what you pay, we’re offering a free 30–40 minute Financial Review.
You’ll walk away with:
- A one-page action plan showing exactly where your money is going.
- A cost and value comparison vs. what you’re paying today, and what additional services you may be missing out on.
- Clear next steps you can implement
These reviews are flexible and can be held virtually, in our Ann Arbor office, or even at your home.
If you’re already in great shape, I’ll tell you. If there’s room to improve, you’ll see it in black and white. If you’re interested, click the button below!
– Clint Kraft
Founder and Financial Advisor, Kraft Capital