We have strong data driven numeric proof that so-called wealth managers that actively manage investments underperform passive index investing on average. But if you want to pay a 1% fee, they will take their chances on keeping your 1% each quarter if random variation allows them to be close enough (or even do better) to the market, or that they can "sell" you on the merits of the service regardless of performance. It's all marketing and apparently effective marketing.
While that is certainly true on average. There are many things were you can make the same point. On average professional sports coaches and general managers lose as many games as they win, on average lawyers lose as many cases and on average poker player loses money. Yet nobody would claim that there aren't superior coaches, GMs, lawyers or poker players. There are superior money managers, it is just very difficult for the average person to figure out who is really good, and who is just using smoke and mirrors.
As I said I'm not recommending the Schwab adviser for people on the forum. But the problem with just buy a few index funds as one size fits all approach is two fold. First, some people have complex financial situations involving company stock, a business they own etc. The 1/2 in Vanguard Total Bond Market and 1/2 in Total Stock Market re-balance every year or even a more complicated portfolio is just too simplistic, in many cases.
In the real world, most people have multiple 401K with limited choices and tax consideration, which a good financial adviser can help provide money saving guidance on.
Second and more importantly normal investors as opposed the folks on the board behave badly. We have strong data driven numerically proof that investing in index funds, doesn't mean you'll get index fund returns. The total returns of VFINX (S&P 500) over the last 15 year have averaged 4.25% the investor returns are 2.55%. For a 1 million dollar portfolio 50/50, that difference is more than $200,000. Even subtracting Schwab .70% fee for $1 million portfolio that still adds up to more than 100K. In order for an adviser to justify his fees, all the adviser had to do was convince his client one time not to do any of the follow.
1999 sell all his bonds and put his money in the stocks, especially them internet stocks
2008, early 2009, don't sale stocks
2010 buy stocks if you previously has sold them.
Now I have only meet a couple of Ameriprise adviser and seen their disastrous result on the forum many times. I believe they are entirely motivated by commission, and their are multiple layers of commission.
Funds, commission are relatively small part of how Schwab compensates their advisers.
For a disciplined investor there is no need for an adviser, for a person who is disciplined about getting exercise there is no need for a personal trainer/or fitness classes. For the rest of us they can help.