For any business relationship to work, the value gained for both parties must exceed the cost. The calculation for a financial advisor is quite simple: The relationship works for the advisor if the compensation received in return for advice and service is enough to cover costs and a reasonable profit. The calculus for clients choosing a personal financial advisor is more nuanced, but broken down to its most basic level would be: Is the value obtained from hiring an advisor greater than what I pay?
Prime Capital Investment Advisors' Jason Noble and Andy Merchant discuss this question.