If the services of a financial adviser are limited to asset allocation services comparable to that of the robos, then they will experience fee compression.

However, anyone with practical experience knows that financial and investment planning with individuals is more about psychology and human behavior than about numbers.

Without a personal relationship with a quality adviser, individuals make choices based on over-optimism in bull markets and over-pessimism in bear markets. They buy at the top and sell at the bottom. They invest either too aggressively or too conservatively. They miscalculate the cost of taxes. They think they will live forever when discussing life insurance and that they they won't live very long when discussing longevity insurance. They are mostly in complete denial about future medical and long term care expenses in retirement. They deplete retirement funds to give money to and pay for education for their kids. They overspend with their consumer and real property purchases. They underestimate their spending habits. They rarely revisit their debt amortization and costs. They buy cars based on monthly payments. They buy vacation homes and rvs when they would be better off renting than owning. They are subject to the whims of the things they read and watch on the Internet and cable TV. Etc., etc., etc.

A financial adviser who also addresses all the above psychological and behavioral issues more than earns their 1%. They create tax alpha, behavioral alpha, budgeting alpha, etc., etc. far in excess of their 1%. They do not experience fee compression.