Based on this assessment, I don't see why one would hire an investment adviser at all.

Assuming the investor has a typical goal (e.g.retirement savings), they could just buy and hold indexes (in an IRA perhaps, if they can get their employers to match their contributions), allocating from riskier asset indexes to less risky asset indexes over time.

For asset allocation they could consult a flat fee financial planner for generic asset allocation strategies that correspond to each stage of their lives (or better yet just find them online via numerous sources), trade for themselves via Scottrade, and avoid an investment adviser completely.

Finally, if they are particularly risk averse they could manage risk (and effectively buy peace of mind) with various forms of insurance beyond health insurance (disability perhaps).

As far as discipline is concerned, hiring an investment adviser is not necessarily going to make someone more discipline. If they tell you to buy XYZ stock at whatever valuation because they like it, or to sell ABC annuity because they need the cash for something they don't really need, sure you have the fiduciary obligation to tell them it's a bad move, but in the end, it's their money and they make the calls about how to allocate it.

Thoughts?