1 / 31

INDEPENDENT ADVISOR MARKET

INDEPENDENT ADVISOR MARKET. Scott Wenger Financial Planning 2012. Financial Planning. OUR AUDIENCE • There are nearly 300,000 professionals (comprised of RIAs, independent broker-dealers and dually registered reps) in the universe covered by Financial Planning.

jeremy-butler
Download Presentation

INDEPENDENT ADVISOR MARKET

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. INDEPENDENT ADVISORMARKET Scott Wenger Financial Planning2012

  2. Financial Planning OUR AUDIENCE • There are nearly 300,000 professionals (comprised of RIAs, independent broker-dealers and dually registered reps) in the universe covered by Financial Planning. • The total is projected to grow to 385,000 by 2018. • Overall employment of advisors is expected to increase faster than the average for all occupations. • Advisors have more than $3.4 trillion in AUM. Source: Cerulli Associates

  3. Licenses & Designations 75% Series 6/7 45% Series 65 40% CFP 40% RIA Source: Cerulli Associates, Tiburon Strategic Advisors

  4. Fee-Based Financial Advisor and Independent Broker/Dealer Overlap H Y B R I D S Fee-Based Financial Advisors Independent Broker/Dealer Reps Source: Tiburon Strategic Advisors

  5. Fee-Based Financial Advisors by Registration Source: Tiburon Strategic Advisors

  6. RIA and Dually Registered New Advisors by Previous Channel

  7. Compensation 47% Fee and Commission 33% Fee only 9% Commission only 8% Salary Source: Cerulli Associates, Tiburon Strategic Advisors

  8. Financial Planning THREE KEY CHALLENGES: • Practice Management • Client Management • Portfolio Management

  9. In Growth Mode • 70% of RIAs say their firms have grown in the past year. • Nearly 9-in-10 want to grow over the next five years.

  10. Fee-Based Financial AdvisorsBy Expected Three-to-Five-Year Growth Rate Source: Tiburon Strategic Advisors

  11. The Practice: Regulation FIDUCIARY STANDARD • Advisors worry ongoing federal efforts to protect consumers by mandating that advisors be held to a higher standard will increase costs while actually harming consumers. • New regulations could make even the simplest advice — such as on opening an IRA — much more expensive. POTENTIAL IMPACT • Need for extensive compliance training and consulting. • Significant expenditures on new compliance software.

  12. FEE PROJECTIONS BASED ON FIRM SIZE Source: The Boston Consulting Group

  13. CLEAR PREFERENCE: SEC vs. FINRA-IA SRO Source: The Boston Consulting Group

  14. Source: Financial Planning Tech Survey, 2011

  15. Source: Financial Planning Tech Survey, 2011

  16. Source: Financial Planning Tech Survey, 2011

  17. Source: Financial Planning Tech Survey, 2011

  18. Source: Financial Planning Tech Survey, 2011

  19. The Client: Trust and Communication CONFIDENCE BUILDING • Advisors are trying to grow AUM but some struggle because clients are still paralyzed by fear of extreme market volatility. • Many advisors are embracing new tools social media and tablets to connect with prospects and clients. IMPACT • Advisors must identify market solutions that keep risk-averse clients headed toward their financial goals. • Advisors must master social media and learn to communicate appropriately while remaining compliant.

  20. Fee-Based Financial Advisors & Client Interaction Do it themselves Utilize a TAMP Utilize an investment selection specialist The individual client comes to the RIA to plan and/or invest The financial advisor can provide the full range of services or utilize a vendor for any or all the client’s needs Use back office vendor Source: Tiburon Strategic Advisors

  21. Registered Investment Advisors by AUM Source: Tiburon Strategic Advisors

  22. The Portfolio: Retirement Strategies OCTOGENARIANS, NONAGENARIANS, CENTENARIANS • Baby boomers are turning 65. • A man's average life expectancy at 65 is now 17+ years, 30% longer than in 1970. • A woman's average life expectancy at 65 is 20+ years, compared with 17 in 1970. IMPACT • Advisors need to help clients plan to stretch their money to last 30+ years. • Advisors need to purchase more advanced portfolio management and rebalancing software.

  23. Sources: Cerulli Associates, in partnership with FPA, IMCA and Morningstar

  24. Financial Planning: Reader Profile EXPERIENCED SUCCESSFUL • Average client base of 124 • Personally manage $116 million in client assets • Average client account value is $2.3 million • Invest $18.5 million annually on behalf of their clients 52 years old 18 years industry experience 86% Male / 14% Female $191,000 average HHI 91% have a college degreeor higher (46% have a master’s degree or higher)

  25. Financial Planning SIGNATURE ISSUES • RIA Leaders • FP 50: Annual Broker-Dealer Survey • Pro Bono Planners of the Year • Influencer Awards • Top Schools for Financial Planning • FP Annual Tech Survey

  26. Financial Planning PRINT, ONLINE & LIVE EVENTS • Focus on News Advisors Can Use • E-Newsletters: FP Daily, First Look, Practice Management,Regulatory, Retirement Planning, Technology, Wealth Advisor, Weekend Update, What You Missed In Print • Women Advisors Forum, Conferences & Webinars • AdvisorTV • Introduction of iPad app • New Blogs and Discussion Boards • Social Media Updates: Twitter, Facebook, LinkedIn

More Related