For years, the financial advice industry has grappled with the issue of fee compression. A recent article in InvestmentNews analyzes what lies ahead.

The article predicts that clients will demand either lower fees or a broader range of services. Most of the largest registered investment advisors (RIAs) in the country have kept their fees steady or even raised them over the past decade. But in exchange, they now offer a more comprehensive suite of services.

Historically, a one percent annual fee might have covered only investment advice. Today, that same fee often includes, or needs to include, a range of services such as tax planning, tax preparation, trust and estate planning reviews, insurance evaluations, Medicare advice, and health care planning.

According to InvestmentNews, advisors who are content with maintaining their current client base may continue with their existing fee structures by relying on investment returns to offset any client attrition. However, those looking to attract new clients must be prepared to compete with larger firms either by expanding their service offerings or reducing fees.

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