The industry is also facing an aging advisor population. Carson noted there are more advisors over the age of 80 than there are under the age of 30. On top of that, there are a growing number of high-net-worth clients and a $34 trillion wealth transfer hanging over the industry’s head. Thus, Carson iterated to the crowd that they should help grow the next generation of financial advisors by providing internships and implementing succession plans.
Then there are an increasing number of baby boomers tapping into their retirement funds, meaning a lot of “assets are in play,” said Carson. He sees opportunity here, since clients will likely replace advisors they think aren’t giving them value.
Lastly, there is the looming possibility of a down market. Carson encouraged advisors to take the opportunity to “tighten up” client portfolios and determine what type of risk clients would need to take to reach their goals.
So far, advisors have committed to hiring business consultants, investing in technology and strategic marketing efforts to adapt their businesses. But Carson added that advisors should overlay their business with tax services to help cover their fees. He also prompted advisors to focus on clients’ behavior and suggest approaches that stop them from making the wrong decisions at the wrong time.
When advisors asked him how to compete, he used a metaphor: Advisors shouldn’t be sailboats, which are not equipped for tumultuous encounters. They should instead be more like battleships—with all their capabilities to monitor, get intel and prepare for impact.