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

NASAA moves to let state RIAs use client testimonials, aligning with SEC rule
NASAA moves to let state RIAs use client testimonials, aligning with SEC rule

A new proposal could end the ban on promoting client reviews in states like California and Connecticut, giving state-registered advisors a level playing field with their SEC-registered peers.

Could 401(k) plan participants gain from guided personalization?
Could 401(k) plan participants gain from guided personalization?

Morningstar research data show improved retirement trajectories for self-directors and allocators placed in managed accounts.

UBS sees a net loss of 111 financial advisors in the Americas during the second quarter
UBS sees a net loss of 111 financial advisors in the Americas during the second quarter

Some in the industry say that more UBS financial advisors this year will be heading for the exits.

JPMorgan reopens fight with fintechs, crypto over fees for customer data
JPMorgan reopens fight with fintechs, crypto over fees for customer data

The Wall Street giant has blasted data middlemen as digital freeloaders, but tech firms and consumer advocates are pushing back.

The average retiree is facing $173K in health care costs, Fidelity says
The average retiree is facing $173K in health care costs, Fidelity says

Research reveals a 4% year-on-year increase in expenses that one in five Americans, including one-quarter of Gen Xers, say they have not planned for.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.