At its national conference last week in San Diego, TD Ameritrade Institutional hammered home the point that there will be a monumental shift in ownership of financial assets to the next generation––from $2 trillion to $28 trillion by 2018. As such, TD Ameritrade Institutional President Tom Nally told more than 3,000 attendees about how Generation Y presents one of the industry’s biggerst opportunities.
He cautioned attendees that firms that wait to focus on the next generations will miss out, and that financial advisors need to focus on using technology more effectively going forward. And that includes getting more comfortable using social media. “You have to adopt new communications methods,” Nally said.
And part of focusing on the next generation will entail hiring junior advisors. “Every generation likes to work with their peers,” Nally said.
Although boomers might not like the younger generations’ sense of entitlement, Nally stressed that each age group can learn from each other. For example, he noted, an older advisor can learn from younger employees about how to eliminate inefficiencies.
“The big question is not, ‘Do I need to hire a junior advisor?’” Nally said. “It is, ‘Where can I find one?’ Only 6% of advisors are under the age of 30. We are facing a shortage of talent when business is booming.” He cautioned that the current generation at the top needs to do a better job of growing and grooming the next generation.
TD Ameritrade’s Support
For its part, TD Ameritrade had more than thirty younger folks from nine different programs in attendance. “They are ready and they have their résumés in hand,” Nally said. “Let’s get these kids some jobs.” He also noted TD Ameritrade was giving ten students a $5,000 scholarship, as well as a $50,000 grant to one university.
Many of the younger-generation attendees scored on-site interviews, and some received job offers by the end of the conference.
With the financial planning profession expected to grow by 32%, or nearly twice the average growth rate of all other occupations (according to the Bureau of Labor Statistics), the industry needs to follow TD Ameritrade’s leadership and focus on the future!
Mike Byrnes is a national speaker and owner of Byrnes Consulting, LLC. His firm provides consulting services to help advisors become even more successful. Need help with business planning, marketing strategy, business development, client service and management effectiveness? Read more at ByrnesConsulting.com and follow @ByrnesConsultin.