Why It’s Hard to Find the Right Replacement for a Financial Advisor

One of the things many financial advisors cite as a hurdle in their succession planning is finding the right person to take over for them. Whether they want to take someone on with the intent of selling them their book someday or they can’t find an established financial advisor who is going to be a good fit for their clients, it’s a very real issue in the industry today. But why?

The False Perception that Tech Has Taken Over

There is a pervading myth that technology has taken over the role of the financial advisor, and it’s one that’s widely believed by the younger generations. Having grown up on the internet, they know how to research financial advice on the ever-growing number of available resources online. The truth is, though, that a financial advisor provides much more than just information about wealth management. That’s something that any good financial advisor can tell you, and why there are so many people still using financial advisors today.

A Fear of Getting into the Financial Industry

The banking industry and Wall Street took a big hit in 2010, and people are still wary of getting too involved in these industries, of which financial advising is a part. There is a psychological backlash against Big Banking which led many people away from seeking careers in finance. There is also a fear of another recession. The one in 2010 left a lot of people without jobs and facing big mortgages, so getting into an industry where another bubble could burst isn’t exactly appealing to a lot of member of the younger generations.

There are Fewer Training Opportunities for New Advisors

The big financial advising firms were the prime place to get training as a financial advisor. Today, though, many of them have cut their programs as a cost-saving measure. That means the programs that are available are often highly competitive and exclusive, making it harder to get the right training to be a successful financial advisor. As more financial advisors are thinking about their succession plans, though, hopefully, more of them will consider becoming mentors to up-and-coming financial advisors in the industry.

It’s Still a Great Career–and It’s Getting Better

There have never been better opportunities or more money in the financial advisor industry. The average salary for a financial advisor in the United States is now over the $100,000 a year mark. That’s more than financial planners and many investment brokers are making. Plus, with thousands of financial advisors retiring over the next few years, there are numerous opportunities to buy into an established advisor’s book and get a big jump start on a financial advising career. Plus, more and more baby boomers are reaching their retirement years every day, and they need to know how to make plans that will get them there. That’s what a financial advisor is for and the demand for their services has rarely been higher.

If you are struggling to find the right people to take over your book when you retire, we can help. Contact advisorRETIRE™ today to learn more about our succession planning for financial advisors and let’s create a plan that takes care of you and your clients.