Experienced Financial Advisors Wanted PDF Print E-mail
Written by Kenrick Chatman   
Tuesday, 09 June 2009 15:35
Assets under management and corresponding revenue have declined due to the current economic crisis for firms in the financial planning and advice industry. A reduction in new potential revenue inflows into funds under advice due to an estimated drop in discretionary income has also taken place.
by KenrickChatman


Assets under management and corresponding revenue have declined due to the current economic crisis for firms in the financial planning and advice industry. A reduction in new potential revenue inflows into funds under advice due to an estimated drop in discretionary income has also taken place.

Seasoned financial advisors are currently in high demand since financial advisor productivity (for spending more time reassuring clients) and industry profitability are projected to decrease.

Seasoned financial advisors are in high demand since they are more likely to acquire new revenue inflows of funds from baby boomers seeking estate planning and retirement services and from new clients seeking better asset management. They are also more productive, have higher assets under management, and produce significantly lower training costs.

Most importantly, experienced financial advisors generate large amounts of revenue from well established client bases by providing complex services to both high net worth and corporate clients - market segments that generate over 57% of the US financial planning and advice revenue.

Although employment in the financial planning and advice industry has been growing, a shortage of experienced financial advisors exists; due to factors such as industry recruitment cut backs in early 2000 and retirement.

As a result, consolidation within this industry has been taking place since firms determined that it was more desirable to acquire advisors through an acquisition than hire and train more inexperienced advisors with fewer clients and lower assets under management.

Recently the addition of online access to advisory services, call centers, and teams (groups of advisors serving clients) has also occurred to decrease costs via greater economies of scale as a result of consolidation.

The wealth of the population is expected to take some time to recover. Since the fortunes of this industry are interlaced with the wealth of the population; what other actions could firms take to control costs and surmount a shortage of experienced financial advisors?

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

Kenrick Chatman is a sales and profit growth authority who writes articles on industry analysis and sales. Feel free to read about other industries by visiting his industry analysis blog. Don't reprint this exact article. Instead, reprint a free unique content version of this same article.