Assetmark debuts new advisor succession planning program

AssetMark has introduced a new multi-stage training program aimed at addressing one of the industry’s most entrenched challenges: succession planning for financial advisors.

The initiative, called Ascent, is designed to provide career-long support for advisors at various points in their professional development – from those just entering the field to those preparing to exit. The program comes amid mounting demographic pressures in the industry, with a growing number of advisors nearing retirement and relatively few younger professionals coming in to replace them.

AssetMark, founded in 1996, supports more than 10,700 financial advisors and 317,000 investor households. As of December 31, 2024, the firm reported more than $139 billion in platform assets.

According to the release from AssetMark, its new Ascent program offers three tracks:

• Embark, a six-month curriculum for new advisors;
• Advance, a year-long course for successor advisors and emerging leaders; and
• Summit, a four-month program geared toward established advisors who own their practice and are preparing to exit.

Each phase of the program offers training, mentorship, and events focused on skills such as client engagement, leadership development, and the emotional aspects of succession planning. While many established advisors are well-versed in managing client assets, fewer are equipped to handle the personal and business-related complexities of transferring ownership.

Citing data from Cerulli, AssetMark noted that 72 percent of rookie advisors leave the profession shortly after joining. In an August report, the market research firm highlighted the dismal industry-wide pass rate from advisor boot camp, with over 75 percent of trainees unable to their initiation through to the end.

Meanwhile, 45 percent of current advisors are age 55 or older, and only 9 percent are under the age of 35, according to Cerulli.

In a January 2024 report, an estimated 110,000 advisors, representing 38 percent of industry head count and 42 percent of assets, are expected to grey out of the industry over the next 10 years.

Another December report from Devoe & Company highlighted a succession planning gap among RIAs, with just 42 percent of firms having written succession plans – a record low since the consultancy firm began its tracking in 2019.

Looking at confidence in next-gen advisors, the report found a third of RIA firms (32 percent) had low to no confidence in G2 advisors readiness to take over leadership or management today, representing a 10 percentage-point uptick in skepticism from 2022.

Amid mounting pressure to engage and hold onto key employees, the Devoe report recommended that firms take decisive steps to protect their people, beginning with a viable succession plan that incorporates next-gen readiness.

Other strategic areas it pointed to were career pathing, properly aligned incentive compensation, and consistent performance reviews.

"Those RIA leaders who craft comprehensive human resources plans and strategies will help ensure that their people are engaged, happy, and contributing their very best for the long term," the Devoe report said.