Younger Investors Need You To Advise Them

Wednesday, April 04, 2012 08:54
Younger Investors Need You To Advise Them

Tags: Advisor businesses | marketing | niches

Wirehouses are scrambling to boost margins and seem to be concentrating on gaining higher net worth clients with bigger assets. Younger clients between 35 and 55 years of age control over $10.2 trillion in investable assets but are losing the attention of bigger firms. The Echo Boomer generation is creating its own wealth on the internet and also will be likely inheritors of their parents’ estates.

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The costs of being an asset manager on a wirehouse platform have also increased five-fold from $50,000 to $250,000. A recent Cerulli Associates report says these are two big mistakes wirehouses are making. That could spell opportunity for independent RIAs wishing to offer these clients what they need. In the same report, 74% of clients said they were happy with other full-service broker-dealers; only 58% of wirehouse clients expressed satisfaction. The wirehouse hold on larger assets has also been slipping with market share of 45% at the close of 2011 compared to 56% in 2008.

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