Firms' Desperation Could Play Into the Hands of New Advisors
If you've ever thought of getting into wealth management, now might be the time. Financial advisors are aging, and the business is desperate for an influx of new talent, especially as demographic shifts - ie, the Baby Boomers' retirements - place greater demands on existing FAs.
Yet few recruits are answering the call. A report by research Cerulli Associates says the average age of FAs is just under 49. Fully 14 percent are over 60. Only 5.6 percent are 30 or younger.
Becoming a financial advisor isn't what it once was, notes FA Joshua Brown. Today, creativity takes a back seat to tried-and true-recommendations that force you to "keep your head down and just buy mutual funds." Yawn.
Which isn't to say Brown thinks advisor careers aren't without benefits, even aside from the upside financial potential. "Most of us got into the game because we loved two things, the markets and helping people," he says. Once the markets come back, and FAs begin to feel like doing the helping part again, a new crop of advisors may begin to grow.