The Baby Boomer investors aren’t the only ones looking to retire within the next few years. Unfortunately, their financial advisors are also Baby Boomers and looking to retire.
Where does that leave the next generation and beyond? Veteran advisors are having difficulty finding new talent to help takeover their book of business once they retire.
Many firms like Morgan Stanley Smith Barney are adding plans to help experienced financial advisors with their succession planning. According to Talent Shortage Grips Firms As Financial Advisors Age, the company reported, “(it) created a retiring advisor program that assists those producers who are planning for and changing their businesses over a suitable length of time before their expected retirement.”
But what about acquiring new talent? What plan do firms have in place to find this new talent for these veteran advisors? Apparently, some firms are looking for younger financial advisors to come in and learn the experienced advisors’ business and eventually take over their book of business.
I still believe most financial job recruiters are going to go out and find experienced advisors with a large book of business rather than spend their time hiring young advisors who have no book of business. Many FAs don’t get paid if the book of business isn’t reaching the firm’s minimum requirement. Where is the incentive for financial recruiters?
Mindy Diamond, a financial industry recruiter, states,
“Recruiting advisors without real life experience can pose a serious problem for the firm. The lack of life experience and lack of a rolodex of connections sets these young kids up for failure.”
While this may be true, why can’t firms set up a program to help younger advisors? After all, they are the future.