There are different ways to pay for financial planning and investment advice, but the most common method remains the assets under management model, where an adviser charges an industry standard 1% of your assets under management. For example, if you have $1 million with an adviser charging 1% AUM, you would pay $10,000 per year.

So when is this 1% worth it — and when is it not? If all you’re getting is investment management for the 1% fee, you’re not getting your money’s worth, pros tell us. And it may be time to look elsewhere for a new adviser, like CFP Board, NAPFA or this free tool to get matched with financial advisers from our ad partner SmartAsset.

A 1% fee should go “far beyond investment management alone. It’s not worth a client paying 1% if the service is limited to basic investing or product placement without a personalized financial plan based on what matters most to the client,” says certified financial planner Andrew Small at A Small Investment.

Furthermore, if you have a lot of assets and are still paying 1%, that too may be a red flag because the math no longer works in your favor at a high enough asset level. “At $5 million, 1% is $50,000 per year and frankly the job of someone with $5 million is almost never five times more work than someone with $1 million. It’s almost as if the percentage wage deflates the value of the work being performed past a certain threshold and I’d venture to guess any adviser would privately agree if pressed,” says certified financial planner Eric Croak at Croak Capital.

Instead, the 1% fee should be buying you a full financial life managed under one roof, says Croak. “I’ve slowly realized most consumers don’t know how much full service really is when executed well. On a $1 million portfolio, 1% is $10,000 per year and you better believe that adviser is providing tax-loss harvesting that nets you $3,000 to $5,000 in savings each year, proactively implementing Roth conversion strategies, coordinating with estate attorneys, providing quarterly retirement income projections and daily portfolio rebalancing,” says Croak.

Indeed, “when a client pays a 1% fee, they should be receiving ongoing fiduciary advice that is more than executing a few trades every quarter or so. At the minimum, the 1% fee should include personalized financial advice, cash-flow and risk management, portfolio rebalancing, tax-aware strategies, behavioral coaching and coordination with the rest of the clients’ financial life,” says Small.

For his part, Jim Shagawat, partner adviser at AdvicePeriod, says: “Where advisers add value is in disciplined implementation and coordination. That includes ongoing tax-loss harvesting, systematic rebalancing, tax-aware withdrawal strategies and helping clients access institutional or adviser-managed solutions that are not always easily available to individual investors.”

In order to determine what you can expect in exchange for a 1% fee, certified financial planner Jonathan Vance at Vance Financial Planning says the standard wealth management fee should be converted into dollar amounts. “As the 1% fee increases on higher portfolio balances, it’s fair for clients to expect more in return. On a $250,000 portfolio, 1% works out to $2,500 per year. For this [price range], most wealth management firms would offer portfolio management and an annual high-level financial review. On a $1 million portfolio, a client’s expectations should go beyond simple investment management to proactive, tailored services. If you’re paying an adviser $10,000 or more each year and they don’t maintain updated tax returns on file, don’t know what your full balance sheet looks like or otherwise don’t talk about your financial situation beyond your portfolio, you may not be getting what you’re paying for,” says Vance.

Bottom line: “If a 1% fee is being charged and all you’re getting from an adviser is quarterly rebalancing or other basic portfolio management tasks, you should consider other options,” says Matt Hylland at Arnold and Mote Wealth Management.

What to do if you’re paying too much for your adviser

If you feel like you are paying excessive fees, the good news is that you have courses of action to consider. “You can negotiate with your existing adviser. At higher asset levels, you may be able to negotiate your fee down considerably from 1% to say .50%. This would reduce the fee on a $2 million portfolio from $20,000 to $10,000 per year,” says Vance.

You could also DIY it, of course, or choose an adviser that charges under a different fee structure, such as per project or hourly. Project-based advisers typically charge between $1,500 and $7,500 per project while hourly advisers tend to range between $200 and $500 per hour.

Whatever the fee structure, “the key for any client is to know exactly what they’re paying for and why,” says John Stoj at Verbatim Financial.

Perhaps most importantly, regardless of whether you’re paying 1% AUM, a flat fee or an hourly rate, working with a fee-only fiduciary adviser ensures you’re limiting conflicts of interest. “Look for fee-only advisers which means you pay the fee, rather than fee-based which means they are paid commissions to sell you things,” says certified financial planner Jay Zigmont at Childfree Wealth. You can find advisers via CFP Board, NAPFA or this free tool to get matched with financial advisers from our ad partner SmartAsset.