Faced with an aging advisor and client base, the financial services business has sought ways to attract millennials as clients as their earning power increases and they stand to receive trillions of dollars in potential wealth transfers over the next few decades.

Cerulli Associates expects another transition of assets and influence, of younger financial advisors succeeding baby boomers across the industry. The financial services research firm estimates that 35.5% of the industry, more than 110,000 advisors, will retire within the next 10 years.

This means that nearly 37% of the total advisor-managed assets, almost $6 trillion, will fall under the stewardship of younger advisors. Yet according to the CFP Board, there are more advisors over 70 than there are under the age of 30. Fewer than one in four CFP professionals is under the age of 40. The average age of an advisor is over the age of 50.

“I think the biggest challenge is awareness,” said Rachel Moran of RTD Advisors in Philadelphia. “Most young people are unaware that this career exists.”

When you take a look at Financial Advisor’s 2018 “Young Advisors to Watch,” you realize there is no one-size-fits-all solution to the industry’s demographic challenges.

Some young advisors recognize that they will need to build their own new practices using progressive thinking and efficient work flows, and these entrepreneurs are innovating away from the traditions of the past. Other young people are trying to revolutionize long-established financial firms from within by bringing new blood and new ideas.

While some young advisors are building businesses that can serve larger numbers of lower asset clients with personalized advice, others are creating practices and cultivating skills aimed at satisfying the shifting tastes of the high-net-worth segment. “I would really like to lower the barrier to getting sound advice,” said Don Hance Jr. of LifeSighted in Pacific Palisades, Calif. “I think that’s starting to happen because more advisors are using retainer and subscription models, but it’s still hard for someone making $100,000 or less to stomach a planning fee.”

Many millennial and Generation X advisors are eschewing asset management for technological or third-party solutions, while some are adopting different methods of investing that incorporate social impact or sustainability. Others are encouraging and guiding clients to become successful do-it-yourself investors.

As the potential client base expands, so does the need for a diverse advisor workforce.

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