For decades Americans have relied heavily on social security and employer sponsored pension plans to fund their living expenses in retirement. However, with life expectancy rising, social security’s looming funding shortfall, and the reduction in employer sponsored pension plans, Americans are scrambling to piece together retirement income.

In 2001 Vanguard attempted to quantify the value-add of wealth management services; Vanguard proposed that fee-based financial advisors provide clients with an additional 3% net return on an annual basis.