The advisor industry stands at a precipice of change. Over the coming decade, 37% of advisors—representing $10.4t of assets—plan to retire. Yet nearly 40% say they have no succession plan in place—including a quarter of those over 60 and a fifth of those planning to retire in the next six years. In addition, there is a disconnect between the demographics of advisors and their existing clients and potential wealth holders. The demographics of wealth holders is shifting from predominately white males to include women and people of color. It makes sense that the financial advisor profession also reflects these demographics to avoid any potential future client disconnect. Therefore, a solution may be to recruit and develop a diverse cohort of advisors who possess the perspective to comprehend their clients’ needs.
Failure to progress from succession planning to succession can have serious repercussions for advisors, clients, and the entire industry. Therefore, understanding “flow theory” can help identify and develop the potential successors required to ensure the advisor-client relationship remains trusted and effective—and is also an opportunity to achieve a more diverse representation.
How current financial advisor demographics are positioned to change the landscape of finance.
Track
DEI, Ownership and Impact
Format
Brief and Bold (1 Speaker, keynote style)
Speakers
- NameJennifer Tarsney
- TitleHead of the Advisor Advancement Institute
- OrganizationNew York Life Investments
Description
The advisor industry stands at a precipice of change. Over the coming decade, 37% of advisors—representing $10.4t of assets—plan to retire. Yet nearly 40% say they have no succession plan in place—including a quarter of those over 60 and a fifth of those planning to retire in the next six years. In addition, there is a disconnect between the demographics of advisors and their existing clients and potential wealth holders. The demographics of wealth holders is shifting from predominately white males to include women and people of color. It makes sense that the financial advisor profession also reflects these demographics to avoid any potential future client disconnect. Therefore, a solution may be to recruit and develop a diverse cohort of advisors who possess the perspective to comprehend their clients’ needs.
Failure to progress from succession planning to succession can have serious repercussions for advisors, clients, and the entire industry. Therefore, understanding “flow theory” can help identify and develop the potential successors required to ensure the advisor-client relationship remains trusted and effective—and is also an opportunity to achieve a more diverse representation.
