When you’re looking to add a new advisor to your team, which criteria do you put at the top of your list? Years of experience? Education? Passion? Age of the advisor? The stats tell the true story, as the average age of financial advisors in the United States is 50.9, and 43% of advisors are older than 55. In 2016, only 22% of financial advisors were under 40 and only 5% were under the age of 30. It may be tempting to hire established advisors who have experience serving clientele similar to yours, but don’t discount younger junior financial advisors and the benefits they bring to the table. Here are the top reasons to add younger team members to your firm.
Junior Financial Advisors Can Attract Younger Or Millennial Clients
Did you know that 42% of younger clients want to work with someone who is within 10 years of their own age? Baby boomers have been a profitable market in the past, but those same boomers are already retiring and drawing down their assets. Generation X and Millennial clients are the future of your business and one thing will attract them to your firm is younger advisors who can relate to them. The younger generations are the nation’s primary consumers and are quickly rising to positions of prominence. They want advisors who can understand their struggles and serve them where they are in the accumulation stage.
They Provide A Fresh Outlook
When you’ve been in the same industry for a solid number of years and have served the same niche over time, it can be easy to stick to your ways and lose perspective on how things are changing. Young advisors can join your team with a fresh outlook. They know what their generation wants in terms of relationships, planning processes, types of investments, and service. Current business models may not work as well when the generations change guard and hiring a young advisor is the perfect opportunity to freshen up your services and systems to meet the new needs. For example, young investors understand the importance of voting with their dollars and are more open to socially responsible investing. They may need more help in the area of cash flow planning and desire financial education. Young advisors have the energy and drive to improve on their skills and better the world around them. Their unique problem-solving skills and perspective on life could be just what your firm needs.
They Can Help Implement New Technology
Younger advisors grew up with technology and have embraced it as it’s evolved. They are comfortable using technology to improve their lives and businesses. Whether it’s implementing social media strategies to engage with clients, adopting platforms and software for financial planning, or taking advantage of investing innovations, the younger generation of advisors knows how to research and use technology to add value to your firm.
They Reduce The Worry Of Succession Planning For Older Advisors
With the high number of older advisors in the industry, we will see a significant amount retire in the next decade, up to 16,000 by some estimates. Of those tens of thousands of advisors, less than one-third have mapped out a succession plan for their practice. Not only will young advisors attract a younger clientele which will create sustainability for your business, but their presence will give your current clients confidence that their money will be taken care of when you are enjoying your own retirement years. By investing in younger advisors, you can train them and impart your vision and values so that your career legacy will carry on through them.
They Can Lead A High-Energy Charge On Firm Growth
Financial Advisor Insight tells us that firms with junior advisors on board have 44% more income per owner than those who have not diversified the age of their team. The passion, energy, and innovation young advisors bring to the table can lead your firm down the path of growth. They can streamline your processes, improve efficiency through technology, and market your services in new ways. Just the fact that they will attract younger clients could lead to exponential growth, as Generation X and Y clients provide 80% more referrals than clients of other ages. Investing in the next generation of advisors may take some extra time and energy than hiring an already-established advisor, but this one action could cause your firm to thrive in new ways. Imagine watching your business grow with a team of junior advisors, as you work fewer hours and enjoy your golden years. What could be better than that?