This is because of the borderline scam of charging customers based on a percent of their assets, not for the amount of time spent assisting the client.
I concur. But people are penny-wise and pound-foolish. By building in the advisory as part of the asset management, you have an open line of communication to a skilled financial professional. You don't wonder, "what's this going to cost me?" before picking up that phone like you do with your attorney.
CPA's operate teh same way. They probably overcharge for what they do on an annual basis. But you've got a resource that knows your situation.
Most folks will NOT pay a subscription fee nor a by-the-hour fee. The truly rich will. Well, they already have the $. But I can't see your average 2-income, 1.9 child family shelling out $5,000 per year for financial advice. They'll rarely feel like they are getting their $'s worth.
And it isn't about time, it's about skill and knowledge. People don't pay you for your time, they pay you to know how to fix a problem.
Bob has a sore tooth. His best friend Bill is a dentist. So he goes in to talk to Bill.
"Bob, that tooth's gotta come out."
"What's that gonna cost me?"
"About $350."
"THREE-FIFTY! How long does it take???"
"Oh, I'll have you out of that chair in about 8 minutes flat and on your way home."
"EIGHT MINUTES!?!?!? I'm gonna pay you $350 for 8 minutes of your time? That's like $2500 per hour. Are you insane."
"Bob, Bob, calm down. If it's the hourly rate you're worried about, I can make it last as long as you want."