“Large firms are starting to roll out fee-based services,” Moore noted. “Even broker-dealers are doing fee for service now in order to work with clients who do not have half a million dollars in assets. To be successful, you have to help more than just those people with high assets because there is a lot of competition for clients with $5 million.”
Instead, advisors can build a successful career built on younger clients, particularly if they establish a specific niche, he said.
“To say you work with young people is not narrow enough. Work with parents who have just had their first child, or young couples who have just gotten married,” Moore said. “This specificity allows you to target marketing,
“Life happens really fast when you are young. Just getting a financial plan in place is a good start,” Moore said. “The industry is still going to have traditional business models with fees based on AUM, but fee-based service for younger people is the future of the industry.”