Even so, there will always been a need for both investment managers and planners, Davies said. People with large portfolios will need asset managers, and new investors and young families need planners.
"It is not going to be a fading profession, it's just going to be a changing profession," she said.
TEAMING UP WITH DIY INVESTORS
While young investors starting families may not have many assets to put to work, they have a big need for planning and credit management, a role ideal for financial planners who work on a fee-for-service basis.
Older investors with lots of assets need portfolio managers who can focus on diversifying and minimizing downside risk, and keeping emotion out of decisions.
Thune said clients with fewer assets should stay away from advisers who charge on a percentage basis, but would benefit from a professional who can set up a plan and keep the client on track and honest. Advisers in turn need to be focused on where they can add value, not diminish it.
"Someone with $20,000, I might charge 1.5 percent - at that level I'm dragging on their performance," Thune said. "It's a lose-lose."
"(I tell them) 'You'd be better putting the money in a couple different index funds and then stay in touch, we'll talk more in the future.'"
Thune said advisers have to be prepared to be part of team as consumers shift to a do-it-yourself approach with parts of their portfolio, or with parts of the process. Some may prefer to plan, but want investment advice. Others can do the investing cheaply with an online broker, but don't have the actuarial or tax skills to maximize their returns.
Manulife's Lorentz said finding a good adviser-client fit is critical, so that both the adviser and the client are comfortable with a team approach.