what are the issues?
Aging Financial Advisors will face many challenges.
The independent and hybrid RIA channel has increased its advisor head count to 63,000, up 21% in the five years ending in 2018, according to industry research firm Cerulli Associates. In the same time frame, the number of RIA firms grew from approximately 15,500 to nearly 17,000, according to Cerulli.
Pershing research suggests the average owner is 64 years old, and your clients want to know your plan plus regulators beginning to demand this information.
Anecdotally Millennials expect a different experience.
Fidelity survey says at least 70% of FA’s have no Succession Plan.
What are the biggest challenges?
Leading Industry Survey Results say: Culture, Character and Competence matters most
#1 Worry: Character
Client’s well being
78% of advisors rank this first
#2 Worry: Culture
Finding the right buyer
Internal: Legacy business, taking care of staff, emeritus options
External: Capacity to assume, investment philosophy, personality
#3 Worry: Competence
Valuation and structure
Must be good for both parties
