Median age of RIA firm principals now 49, down from 52

Median age of RIA firm principals now 49, down from 52
TD Ameritrade study finds lead advisers and associates also getting younger.
JUL 31, 2019

After years of growing older, the ranks of advisers and RIA firm leaders are getting younger. (More: RIAs must confront the emotional side of letting go of their business) The median age of RIA firm principals is now 49, down from 52 in 2015, according to a study by TD Ameritrade Institutional, which also found that the number of owners who are 40 years of age or younger equals the number of firm owners who are over 60. In addition, the study found that the median age of firm associates dropped to 42 from 44, while the median age of lead advisers is now 46, down from 50. The study was based on responses from 405 qualifying firms to an online survey fielded this past February and March. To qualify for participation, a firm had to have a minimum of $100,000 in annual revenues and have been in business for at least 12 months, TD Ameritrade Institutional said in a release. (Most: Next gen advisers must be more diverse) The study also found that a typical firm's operating profit margin in 2018 rose by more than a percentage point to 21% as overhead expenses as a share of revenue fell slightly. This translated to a 3.6% increase in median total income for firm owners to $633,000, the highest since 2014, or 55 cents for every dollar of firm revenue.

Latest News

Advisor CRM launches Ember AI client engagement tool
Advisor CRM launches Ember AI client engagement tool

The Nashville-based RIA platform unveils a branded digital workflow solution designed to fix the onboarding gap that frustrates financial advisors.

Retirement uncertainty grows as confidence in Social Security slips
Retirement uncertainty grows as confidence in Social Security slips

Despite relying heavily on Social Security for retirement income, many older Americans doubt the program will deliver full benefits in the future.

Emergency savings gaps are quietly draining American retirement accounts
Emergency savings gaps are quietly draining American retirement accounts

BlackRock data shows workers without a financial cushion are far more likely to raid their 401(k) — and less likely to ever start contributing.

Trump Accounts surpass 6 million signups – but signs of a wealth gap stoke concerns
Trump Accounts surpass 6 million signups – but signs of a wealth gap stoke concerns

With just a small fraction of eligible kids enrolled ahead of the July 4 launch, experts warn lower-income families could be falling behind.

Reason vs. emotion: When feeling right may lead investors wrong
Reason vs. emotion: When feeling right may lead investors wrong

When even perfect portfolios come under pressure from fear or greed, a disciplined and balanced framework can make for better investing decisions.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.