With over 40 years of combined experience working with veterans of the financial services industry, our team knows all of the benefits a career path as a financial adviser or financial planner can bring. And while speaking to advisers who absolutely love their jobs is a common occurrence for us, we are continually amazed by how little outsiders actually know about everything the industry has to offer.
As members of the financial advisory community we owe it to ourselves to create more awareness of the financial advising and financial planning profession. As the average age of financial advisers continues to climb and women continue to control more investable assets, our industry must find ways to attract younger and more diversified talent.
While you likely already recognize the financial services industry as an incredibly rewarding, flexible, lucrative and – perhaps most importantly – growing career path, many others do not.
With that, here are our top 10 reasons we encourage students, recent grads and career changers to explore a career path as a financial adviser in 2015:
1. Industry-wide, financial services firms are eager to hire the next generation of advisers. The U.S. Bureau of Labor Statistics projects the number of job openings for financial advisers will jump
27%, or 60,300 additional jobs, by 2022. That's much faster than the 10.8% average growth rate for all occupations.
2. This dramatic need for financial advisers is attributed to the aging out of many of the industry's current advisers. According to global research firm Cerulli Associates,
43% of financial advisers are over age 55 and the
average age of advisers is currently 50.9 years.
3. Just as the industry is expecting a decrease in financial advisers,
more investors than ever are seeking the advice of professionals in the wake of the Great Recession, creating an increasing need for the next generation of financial advisers.
4. According to a study published by Pershing LLC, an estimated
$30 trillion in wealth will transfer to the next generation of investors over the course of the next 30 years. As this wealth is transferred, many in the next generation will be looking to align themselves with new financial advisers.
5.
Experienced advisers report a lack of time and rapport to develop relationships with their clients' children and/or grandchildren. Laying the groundwork with these next-gen clients increases your chances of earning the privilege of managing their inherited assets.
6. In a 2012 Cerulli Associates report, only 7.9% of financial advisers were women. At the same time, women have decision-making power over 39% of all investable assets in the U.S. This need for female financial advisers provides
ample opportunity for women interested in a career in the financial services industry.
7.
Financial adviser ranked No. 4 on the U.S. News and World Report Best Business Jobs for 2014—based on hiring demand, salary, industry growth and work-life balance.
8. According to the U.S Bureau of Labor and Statistics, the mean
annual wage of a personal financial adviser was twice that of the average income reported for all other occupations. Some industry projections have
starting salaries forecasted to rise 3.5% in the next year.
9. As a financial adviser, there are
multiple career paths to follow at large firms, small or mid-size branches or as an entrepreneur eventually opening a solo practice.
10. Opportunities are
not location specific. Like other service providers of influence, doctors, dentists and accountants, financial advisers are needed in large cities and small towns across the country.
At The Advisor Center, we pride ourselves on providing advisers looking to explore a professional move with all available options for their business. When it comes to looking at other firms, many experienced advisers will tend to gravitate toward what they know because they simply aren't aware of what's available in the marketplace.
The same holds true for those who may not have considered a career path as an adviser. There are so many reasons to choose this profession…those who are currently in it just need to do a better job of helping to spread the word.
Tom Daley is the founder and chief executive of The Advisor Center, a strategic partner to InvestmentNews and The InvestmentNews Career Center.
