What Industry Trends Mean for the Future of Your Financial Planning Practice: Blue Ocean Spotlights Tectonic Plate Shifts
At a recent Colorado Financial Planners Association (COFPA) meeting, Sameer Somal, Blue Ocean founder, gave a sobering snapshot of things every financial advisor needs to consider: what’s next for your practice. When an industry like financial planning is undergoing rapid tectonic plate shifts, the impact of those shifts create a tsunami of change to every participant in the industry—not only advisors--especially their clients.
I rarely use superlatives like “every” but consider the following profile of the financial advisory space:
- Average age of a financial advisor is 50+
- 10% are 60 and older
- Of the advisors within two years of retirement age more than half do not have a written succession or contingency plan
- 75% of advisors have never had a third party valuation of their firm
- More than 40% of approximately 315,000 advisors will transition their practices over the next 15 years.
Where are their successors coming from? (more…)