Wirehouse vs Fee-Only Cost Calculator
Calculates the annual and 20-year wealth impact of switching from a wirehouse (Merrill, Morgan Stanley, UBS, etc.) to a fee-only RIA. Conservatively assumes same investment performance.
Why the gap is often this big
- Wirehouse advisors are employees incented to gather assets. Fee-only RIAs are fiduciaries incented to retain clients long-term.
- Embedded fund expenses are invisible. Mutual funds inside a wrapped account look like "free" but carry 0.5-0.8% expense ratios. Swap to index funds and you save $50-75K/yr on $10M.
- Direct indexing changes the math. Not available at most wirehouses for accounts under $20M+. Fee-only RIAs deploy it at $1-5M via partners (Aperio, Parametric, Wealthfront SMA). Tax alpha compounds meaningfully.
- Kickbacks. Wirehouses receive shelf-space payments from fund providers — which constrains the universe they recommend you.
Related reading
Review your current setup
Specialist advisor will analyze your actual statements — including embedded fees, tax drag, and coordination gaps. Free, no obligation.