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…)

What Industry Trends Mean for the Future of Your Financial Planning Practice: Blue Ocean Spotlights Tectonic Plate Shifts is republished from American Business Advisors Small Business Consulting Firm

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