[mushufasa]

> You don't get wealthy by giving someone else 1% of AUM for performing on-par with a passive investment in index funds you could self-manage.

This is how advisors are typically paid, but this isn't all that they do. Empirically, as people make more money, they turn more to advisors and away from self-directed or robo apps.

Lots of people have opined on why, if you follow the trade publications for advisors. To me, the reasoning comes down to risk: if you have a lot at stake then you will pay money for a lawyer to review for $$$$ per hour. If you have a lot of money you will pay 1% if you can feel more comfortable that the advisor is handling all the aspects of it and you can sleep better at night.