The True Cost of 1% What Percentage Fees Hide

For years, the financial advice industry has told clients that 1% is a fair price to pay for investment management. It sounds small. Manageable. Even harmless. But when you translate that percentage into pounds, the picture changes completely.

At Xentum, we believe every client deserves to see the truth behind their costs. That starts with fixed fee financial planning, a model designed to bring fairness, clarity and transparency back to advice.

The illusion of 1%
A 1% annual charge on a £1 million portfolio equals £10,000 every year. Over ten years, assuming modest investment growth, that could exceed £120,000 in fees. And that is before accounting for fund costs, platform fees or additional charges hidden within performance reporting.

The important question is simple: did your adviser’s work increase tenfold during that period? In almost every case, the answer is no.

Percentage charging rewards rising markets, not adviser effort. The client takes the risk, but the adviser’s income automatically grows whether or not their workload does. It is an outdated model that prioritises assets over outcomes and money over meaning.

For years, clients have been told that 1% is a fair price to pay for investment management. It sounds small, even harmless. But when you understand what that means in pounds, the picture changes completely.

At Xentum, we believe everyone deserves clear, transparent and fair advice. That is why we use fixed fee financial planning  a model that puts honesty and accountability back at the centre of financial advice.

The illusion of 1%
A 1% annual charge on a £1 million portfolio equals £10,000 every year. Over ten years, assuming modest investment growth, that can exceed £120,000 in fees. And that is before fund costs, platform fees or hidden extras buried in reports.

The important question is simple. Did your adviser’s work increase tenfold? In most cases, the answer is no.

Percentage charging rewards rising markets, not adviser effort. The client takes the risk, but the adviser’s income rises automatically. It is an outdated model that prioritises assets over outcomes.

What percentage fees hide
Percentage based charging creates uncertainty. When markets move, so do your costs. Many clients do not know what they are paying until they work it out themselves. That confusion quietly erodes trust.

The lack of transparency creates three problems.

1. Cost grows without additional work.

2. Every pound lost to fees is one that cannot compound for you.

3. Advisers may be incentivised to retain or move assets rather than simply advise what is best.

This is not what good advice looks like. You deserve clarity and control through fixed fee financial planning.

How fixed fees change everything
At Xentum, our pricing reflects time, expertise and the real cost to serve, not portfolio size. This makes advice fair, measurable and completely transparent.

Here is what that means in practice.

• You pay for the work delivered, not the wealth you hold.

• You can plan your costs confidently each year.

• You keep more of your investment growth over time.

With fixed fees, your success does not cost you more. Our role is to create confidence through clarity, not to take a percentage of your progress.

You can see how this works using our Fixed Fee Calculator, which shows real examples of how our costs are set.

The compounding cost of confusion
Compounding is one of finance’s most powerful forces, but it works against you when your fees compound too. Losing 1% annually might sound small, yet over decades it can cost tens of thousands in lost growth.

By switching to fixed fee financial planning, you protect your returns and align your costs with genuine work done, not market luck.

Aligned with fairness and regulation
The FCA’s Consumer Duty requires firms to prove fair value and transparent outcomes. For Xentum, this is already built into our process.

Each client receives a clear explanation of fees before we begin any work. We document the service, define the cost, and make sure you understand it fully. That level of clarity builds lasting trust.

Rebuilding trust through truth
Trust is earned when clients feel informed. Fixed fees make that possible. They turn financial planning into partnership — open, equal and purposeful.

Our clients tell us they feel calmer knowing what their advice costs each year. That peace of mind defines our Movement of Clarity.

A fairer way forward
Financial advice should not cost more just because your investments grow. It should reflect the advice, planning and care you receive.

At Xentum, we believe fixed fees are better for clients and for the profession. They promote transparency and accountability, helping both sides focus on what truly matters — progress, not percentages.

See the real difference
Use our Fixed Fee Calculator to find out what fair advice really costs. No hidden extras, no surprises — just transparent, fixed fee financial planning built around you.

Because clarity is not just a principle, it is a promise.