The graph to the right displays the gender and age range of Financial Adviser candidates extracted from our database. The gap is clear in the young, 18-24 range market.
Nearly one-third of financial advisors fall into the 55 to 64 age range, according to a 2014 Cerulli Associates report, suggesting that this market is becoming an ageing market. A report from APFA last year stated that there were around 500 new adviser ‘trainees’ (those with less than three years of experience) in the financial advice industry.
The low number of new advisers in the profession continues to fall as more baby-boomer advisers retire each year. The industry saw its sixth consecutive year of decline in 2015, to around 23,900 advisers, from a peak of 27,100 in 2009, according to APFA.
The decision to hire a professional to help you navigate the uncertain terrain of your financial future is not a choice you take lightly. Do you go with the industry veteran who has the experience through ‘time-served,’ or do you put your trust with a younger financial advisor who may be able to relate to your current financial state?
We are all aware of the concern that young financial advisers have a lesser life experience- how can a young person relate to plans and debt management when they have never had to deal with them personally? How can he/she deal with my cash flow when they have never even bought a home?
Sarah Wills, 22, a Financial Planner, said that her firm team up junior and senior advisers to work with clients. This pairing helps to ease the concerns older clients have about turning over their assets to younger, less-experienced advisers. It also helps trainees to gain knowledge and a greater understanding of how to work with clients. Sarah has graduated within the industry, but agrees her biggest issue is being taken seriously by clients.
We live in an age in which more and more young people are joining the ‘c-suite’ and the number of budding self-made millionaires is unprecedented. These millionaires are starting businesses in their 20’s, which is on average a decade before their predecessors.
In a world that associates youth with innovation, having the insight to gather and make sense of information is natural when learning is still fresh. Achieving your financial goals requires an ongoing series of decisions shaped around your needs and lifestyle. If you are looking for someone insightful with a propensity towards new possibilities and an outside-the-box mindset, then you may consider hiring a young financial adviser.
The aging financial advisory industry is creating many job opportunities for young, aspiring advisers looking for a spot in the business. Could the current crop of millennials, with the merge of training and real-life experiences, be the next in line for the job?
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