Even with the number of firms charging financial planning fees and raising them, Tibergien says more advisors are eventually going to have to bite the bullet and attach a higher value to their financial planning services.
One reason is that average profit margins are shrinking, he says. Overhead costs now consume about 44% of revenues for the average firm, compared with 38.5% in 1999, he says.
"At some point, they have to persuade their clients that what they provide is of value," Tibergien says. "Advisors (instead) often apologize for what they charge." With the waiting rooms at many firms looking like an emergency room during war these days, that may be easier to do than anyone imagined.