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The Graying of the Advisor Market

According to research by Cerulli, the headcount for advisors dropped 1.3% in 2012 — a trend that’s expected to continue through 2016. Combined with the fact that the average age for advisors is 51, with 68 the age they expect to retire, you can begin to see the problem. After the recession, wire houses, which have the most robust training programs, were forced to back off, with some senior executives questioning the efficacy of a program that has only a 40-50% success rate. That low rate may explain why fewer college grads are becoming advisors, even though it’s cited as a top career path. Facing scant resources, smaller advisory firms also struggle training new talent. In addition, the advisor profession has traditionally been male dominated, with more of women leaving the profession because of a lack of network or mentors as well as negative stereotypes, according to the CFP Board. Potential solutions, according to an article in Wealth Management, include promoting service people who may not be licensed but have strong practical experience, and recruiting older workers looking for a second career. Mature CPAs, MBAs, JDs or business owners who have divested have the financial means to invest time in their careers and are a good pool of potential recruits with the ability to relate better to older clients and business managers.

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