Registered Investment Advisors (RIAs) are navigating a changing landscape as traditional asset management services, such as stock picking, lose value in the eyes of clients. According to WealthManagement, with the rise of low-cost digital solutions and ETFs, clients have more affordable options for building diversified portfolios. As a result, advisors focusing solely on investment management have seen their fees decline. WealthManagement reports that RIAs increasingly are incorporating additional services like comprehensive financial planning, estate planning, bill pay, insurance reviews, and even tax return processing to justify their standard AUM (assets under management) fee.

Industry expert Mark Tibergien also emphasizes the importance of scale, defining it as "revenue growing faster than the firm's expenses." If RIAs fail to attract more or larger clients to cover the costs of those additional services, they risk seeing their margins shrink.

Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.