The younger generation of advisors seems to be doing better than their Baby Boomer peers, according to research conducted in 2012 involving 1,200 plans ranging from RIAs to wirehouses. On average, Gen X and Gen Y advisors had $8 million more in AUM. Reasons included the greater use of technology, not just to streamline tasks but also to meet and communicate with clients electronically. That gives them more time to prospect and build relationships with clients.
Notably, three times as many clients of younger advisors provided referrals — perhaps because younger advisors are more willing to work with less wealthy clients (who are more likely to refer business).
Other reasons for the higher AUM is that younger advisors:
• tend to be part of a team;
• are more likely to adopt a fee based model; and
• are regarded as more collaborative.
