I’m 67, living in Boston and have $1.5 million saved. I’m still working full time and paying 1% to a big bank to manage my money. What’s my move?

I’m 67, living in Boston and have $1.5 million saved. I’m still working full time and paying 1% to a big bank to manage my money. What’s my move?

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Question: I live in the Boston area. My $1.5 million retirement portfolio is managed by a full service commercial bank with a 1% annual fee. I moved my portfolio to this bank from a wealth management company when my adviser moved. I originally connected with him through a friend’s referral. I’ll be 67 in July and I’m still working full time.

Am I a good candidate to switch to a flat fee payment model? I’m not sure which fee structure would best suit me or how to tell if I’m paying too much for advising services. (Looking for a financial adviser too? This free tool can match you to a fiduciary adviser.)

Answer: It sounds like you’re questioning the value you’re receiving for a 1% fee – and that’s fair. “If that’s the case, shop around for different wealth management practices to see if there’s a better fit outside of the large financial institutions,” says certified financial planner James Daniel at The Advisory Firm. Note, too, that a flat-fee adviser might be the right choice for you – we will get into that below – but it’s worth thinking through all the options.

Have an issue with your financial adviser or looking for a new one? Email questions or concerns to [email protected].

Firstly, some background: Advisers typically work under a few different fee schedules: assets under management (AUM), flat fee, hourly or project-based. The AUM model tends to be the most common and works best for those with ongoing investment management needs. The cost for flat-fee advice is determined regardless of the amount of assets a client has and works best for those with large balances, for which the 1% AUM fee would be greater. Hourly planners come in handy for clients who have specific needs or questions and only require a limited amount of time from a professional; project-based advisers tend to work with clients who aren’t ready for a long-term commitment, but have specific concerns or areas they need assistance with.

Though costs vary, hourly planners tend to charge between $150 and $450 per hour while project-based advisers typically cost $2,500 to $10,000 depending on complexity, location and portfolio size. A typical fee for an AUM adviser is about 1%.

No matter your fee structure, consider a fee-only, rather than fee-based, adviser who is a fiduciary. Fee-only advisers are paid directly by the client and don’t get commissions for recommending specific products, which should reduce conflicts of interest. Fiduciaries are required to put their client’s best interests ahead of their own.

You might want to consider someone like a certified financial planner (CFP) who will not only manage your investments, but also create a comprehensive financial plan that takes into account everything from taxes to Social Security. (Looking for a financial adviser too? This free tool can match you to a fiduciary adviser.)

“Do you have a plan for your disability or death that won’t add unnecessary difficulty or cost to your loved ones? Are you optimizing your income and expenses for income tax, capital gains tax, net investment income tax and Medicare surcharge premiums? Would you benefit from a health savings account? Are partial Roth conversions in order for your situation? Is your emergency fund earning .05% or 5.0%?” asks certified financial planner Holly Donaldson at Holly Donaldson Financial Planning. “What you’re paying for when you receive financial advice is a comprehensive view of your entire financial picture and any threats to its long term health. Regardless of how you pay for it, this is the minimum service that should be expected.”

So is a flat-fee model right for you?

Firstly, understand that flat-fee models can either be project-based, hourly or subscription-type models. “If you only need a few hours of adviser time a year, hourly might be more affordable, but you would need to do a lot more of the work yourself. Project and hourly engagements are still much more of a DIY-type model, but for some, this arrangement is a good fit and is of good value. For others, they may need more ongoing help, like with AUM or a subscription,” says certified financial planner Mark Struthers at Sona Wealth Advisors.

Subscription-type models are often based on complexity and size of net worth. “Because the fee calculation often includes income and other assets, it can often be as much or more than the 1% AUM. I do see advisers that have max flat fees of $6,000 to $10,000, but keep in mind they will not have direct access to your assets; you will have to place trades and process paperwork,” says Struthers.

Ask yourself how you’ll feel with the flat fee in a market where your portfolio declines but you’re still paying the same fee. “Flat fee managers generally charge less than fee-based managers, but not necessarily in a declining market,” says Donaldson.

For her part, certified financial planner Lea Ann Knight at Better Money Decisions says it’s worth exploring a flat-fee model with a fiduciary who is a CFP. “But be warned, if you’re expecting that fiduciary adviser to still manage your portfolio, the flat fee might not be much different than what you’re paying now. Managing a portfolio takes time and expertise no matter how you pay for it. Is your bank adviser giving you expert planning advice as well as managing your money? If not, you should definitely shop around for a fiduciary adviser who offers both planning and management and for a $1.5 million dollar portfolio, you may even find someone that charges less than 1%,” says Knight.

In the end, hiring any professional is about making better decisions. “No one fee model is perfect, it’s about what’s best for you,” says Struthers. (Looking for a financial adviser too? This free tool can match you to a fiduciary adviser.)

Have an issue with your financial adviser or looking for a new one? Email questions or concerns to [email protected].

Questions edited for brevity and clarity.