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Baby Boomer ClientsRecently asked “What’s the most vital market force facing Ameriprise right now?” Pat O’Connell, Executive Vice President of Ameriprise, responded:

“We’re at the trough of the baby boomers marching their way into their 60s. The demands of that generation—and they have changed so many different markets—are such that our industry has to move toward a model where we’re serving clients across a broad spectrum of needs, from investment needs to healthcare needs to overall comprehensive advice. The advisors who will gain the most market share are those who really specialize their skill set.

Our focus, not 100%, but the majority of it, is on the pressing needs of the baby boomers. And you can see the industry slowly starting to shift toward an advice-based approach to serving those baby boomers, along with a compensation model to match.”

In regards to a shift towards a feel based industry, O’Connell stated:

“In the 21 years I’ve been in this business, I’ve watched margins keep getting compressed on products, whether it’s transactional products or fee-based platforms. But my experience is that people are more than willing to pay for advice. They’re less and less interested in paying high fees for execution, and I see that just continuing to accelerate.”