The study identifies three broad stages of goals-based investing: setting personal goals; implementing a strategy to achieve those goals; and monitoring progress. Only slightly more than half (54%) of investors indicate their advisor helped set goals and discussed risk. Barely one-third (34%) say their advisor effectively delivered on all three stages.

“These results don’t speak well for the industry as a whole,” said Mike Foy, director of the wealth management practice at J.D. Power. “Investors have some newer, more compelling lower-cost alternatives available to them, including robo-advisor. In addition, with CRM2-mandated fee disclosures beginning to roll out, many investors will be learning for the first time exactly what they have been paying for. Advisors who aren’t adding value for their clients beyond asset allocation may be in real trouble.”