Private banking fees typically range from 0.50% to 2.50% annually for asset management, with additional costs for custody (0.10%-0.75%), performance fees (10%-20%), and transaction fees ($25-$150 per trade). Total costs usually range from 1.00% to 4.00% depending on services and complexity.

Key strategies include consolidating assets for volume discounts, negotiating fee structures during annual reviews, unbundling services you don't need, and leveraging competitive alternatives. Clients with $10M+ often achieve 0.25%-0.75% fee reductions through negotiation.

Investment management fees are generally not deductible for individual taxpayers under current tax law. However, fees paid by trusts, foundations, or business entities may be deductible. Consult with tax advisors for specific situations and potential structuring opportunities.

Common hidden costs include bid-ask spreads (0.05%-0.50%), fund expense ratios (0.10%-2.00%), currency exchange fees (0.25%-1.50%), third-party manager fees, and tax inefficiency. These can add 1%-3% annually to your total costs.

Private banking fees are typically 0.25%-0.75% higher due to comprehensive banking services, lending facilities, and higher service levels. However, the integrated approach often provides better value for clients needing both investment and banking services.

Performance fees (typically 15%-20%) are justified for alternative investments, hedge fund strategies, or specialized mandates targeting above-market returns. They should include high water marks and hurdle rates to align manager incentives with client outcomes.