Fee compression might sound like a strange or complicated term, but it's basically the idea that as the financial planning/asset management space becomes more crowded, advisors with smaller firms will have to reduce their fees and eventually go out of business.
Kitces and Alan break down the different versions of fee compression that they do and don't see in the financial advisory marketplace, and they talk about why they think niched advisors are going to continue to succeed. They also touch on the legitimacy that big companies like Vanguard and Schwab are bringing to our profession, making financial advising more familiar and accessible to more people.
Alan highlights the benefits these big moves will have for younger advisors, who will be able to get legitimate financial planning experience much earlier in their careers. Long story short: we'll be just fine, and a niche is (almost) always a good idea.
You can find show notes and more information by clicking here: www.xyplanningnetwork.com/90