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

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.