From Robo to Fiduciary: How Americans Are Rethinking Financial Advice in 2025

NAPFA’s leadership underscores that its members must annually renew a Fiduciary Oath and abide by a strict Code of Ethics—standards the group calls the “cornerstone of client-first planning.”

What Does a Financial Advisor Actually Do?

Kaplan Financial’s career guide notes that personal advisors help clients with everything from investment selections to estate and insurance planning, whereas investment-only professionals “focus primarily on strategy and portfolio design.” That distinction matters because, as Kaplan reminds readers, advisors must “ design investment portfolios based on economic trends, regulatory changes, and clients’ risk tolerance .”

How Much Will Advice Cost?

NerdWallet’s latest survey pegs the average assets-under-management (AUM) fee for a human advisor at about 1.05% a year, with hourly rates averaging $268, while robo-advisor platforms start around 0.25%. As the site cautions, those fees compound: a seemingly small percentage can translate into large dollar amounts over time. NerdWallet reminds readers to always verify credentials using SEC Form ADV and FINRA’s BrokerCheck .

Table 1 | Typical Advisor Fee Models in 2025

*Ranges compiled from NerdWallet fee data and NAPFA compensation descriptions.

Flat Fees and the Rise of “All-In” Planning

Facet Wealth, an SEC-registered RIA, has popularized a flat-fee subscription that includes investment management, tax prep, and estate document drafting. The firm touts its ability to deliver a “tailored roadmap that adapts to your life,” promising transparent pricing that “remains constant as wealth grows.”
Industry analysts note that the model appeals to younger professionals who want holistic guidance but balk at traditional AUM pricing.

Technology’s Double-Edged Sword

Courses from the Corporate Finance Institute point out that automated platforms are “increasingly replacing manual advising” through algorithm-driven portfolio construction, but also warn that skepticism remains about reliability. CFI highlights “robo-advisors… offering faster and cost-effective investment portfolio creation using AI algorithms.”
Advisors who embrace these tools, combining automation with human coaching, appear best positioned to serve clients demanding 24/7 dashboards and lower costs.

The Credential Checklist

Below is a quick vetting guide distilled from NerdWallet’s due-diligence recommendations and NAPFA’s fiduciary standards. - Confirm fiduciary status in writing.
- Use the SEC’s AdviserInfo to review Form ADV.
- Run a FINRA BrokerCheck for disciplinary history.
- Look for respected designations (CFP®, CFA®, CPA/PFS).
- Ask how the advisor is compensated—then ask why that model fits your situation.

A Doctor’s Perspective on Fees

Physician-author Jim Dahle of The White Coat Investor warns that paying 1% of assets for decades can be devastating: a doctor investing $50,000 annually for 30 years could lose roughly $1 million to fees alone. He argues that commission and high AUM structures “ erode vast amounts of wealth ,” urging high earners either to negotiate flat fees or pursue a DIY index-fund approach.

Outlook: Demand + Scrutiny = An Evolving Industry

With Baby Boomers retiring, Gen Z entering the workforce, and DIY trading apps normalizing markets, the advisory field faces both historic opportunity and unprecedented transparency demands. Whether advisors charged by AUM, by the hour, or by subscription, the winning formula appears to be clear: 1. Put the client first—formally, as a fiduciary.
2. Price services transparently.
3. Blend technology with empathetic human advice.

Those who meet that standard may find the next decade every bit as “much faster than average” as the BLS projects.