The choice in one sentence
Separate portfolio management from financial planning so you can compare scope, responsibility and total cost for the work you need.
What to compare side by side
| Subject | Relationship | Evidence or action |
|---|---|---|
| Starting point | sets the basis for | Separate portfolio management from financial planning so you can compare scope, responsibility and total cost for the work you need. |
| Scope and assumptions | is supported by | List the decisions due this year |
| Cost and trade-off | is tested with | Mark investment and planning deliverables |
| Written result | should include | Confirm who has trading authority |
Start with the decision you need to make
Portfolio questions concern allocation, securities, rebalancing and risk. Planning questions concern how accounts, debts, benefits, insurance and goals fit together. Write the decisions due in the next year and ask which are included. A planning relationship that only produces an allocation may not solve a retirement-income or debt decision. Next step: Compare adviser fee structures in dollars.
Match responsibility to the agreement
The agreement should identify discretionary authority, monitoring, planning topics, meeting cadence and the people performing each task. Check Form CRS and Form ADV against the proposal. If tax or legal work is excluded, identify who coordinates with those professionals and what information will be exchanged. Next step: Check the firm's detailed service disclosures.
Compare total cost for the same scope
An asset-based fee can include planning or only portfolio management. A separate planning fee can be one-time or recurring. Request a first-year dollar estimate, product and custody expenses, and a list of work that costs extra. Compare candidates only after the deliverables match. Next step: Review the engagement agreement before signing.
A fair comparison in practice
Maya needs a retirement cash-flow plan but can manage a simple index portfolio. One proposal charges 1% of assets for portfolio management and includes limited planning; another charges a fixed planning fee with no ongoing investment control. The second is not automatically better, but it is the closer scope match and can be compared on written deliverables.
Build your comparison record
- List the decisions due this year
- Mark investment and planning deliverables
- Confirm who has trading authority
- Request first-year cost in dollars
- Identify excluded tax and legal work
- Set a review and exit schedule
Questions that settle the choice
Do I need both services?
Not always. The right scope depends on the decisions you cannot handle alone. Ask whether either service can be purchased separately and what coordination would be missing.
Does assets-under-management pricing include planning?
Sometimes, but the percentage alone does not prove it. The agreement and service calendar should state the planning work, frequency and responsible person.
Choose on evidence, not labels
- List the decisions due this year
- Mark investment and planning deliverables
- Confirm who has trading authority
- Request first-year cost in dollars
Primary sources
This page is general education, not individual financial, investment, insurance, mortgage, legal or tax advice.