From Real Assets Adviser: The private wealth business is facing a persistent and decades-old personnel crisis. The number of financial advisers continues to dwindle as RIAs struggle to attract young talent to the business. U.S. financial advisers number roughly 285,000, down from about 500,000 in the mid-1990s. The average age of a financial adviser is 51, and 38 percent of advisers are expecting to retire in the next 10 years, according to a report from Cerulli Associates. Only 10 percent of financial advisers are less than 35 years of age.
What do RIAs need to do to reverse the trend? We asked a dozen leaders in the private wealth profession to offer their observations.
Marc Wishkoff, Managing Director, “We believe the next generation of advisers will seek organizations where they can take pride in the collective achievement of the firm and a differentiated service model. Successful firms will emphasize attracting people who want to be a part of something, in contrast to those who simply aggregate assets, outsource investments, build a personal book of business and guard its portability. Providing talented advisers with an environment to focus on their chosen area of expertise — whether it be investment, planning or fiduciary work — will instill a culture that attracts ever more talent and shared success.”
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