“The differences between the older and younger generations of advisors just might be hindering the growth of the profession. It’s a known fact that only one fifth of the country’s advisors are under the age of 40 and only 5% under the age of 30. So what’s the problem? How to attract new blood is only part of it; retaining is the other.
During a conference in June, Pershing Advisor Solutions CEO Mark Tibergien told the audience that older advisors are driving away younger advisors by failing to develop them professionally and not providing them with enough growth opportunities. And that attrition, Tibergien noted, could be a recipe for trouble if there aren’t enough younger advisors to take over existing practices as older advisors retire or die.”
Tibergien’s comments sparked generational mudslinging from both sides. Some industry veterans bemoaned the work ethic (or lack thereof) and entitlement attitude of young financial advisors, while some younger advisors decried an industry that’s “stuck in the stone age” and declared it’s time to take the business into the 21st century.
Jeff Schlegel, reporting for FinancialAdvisorMag.com, has written an insightful feature article, “The Great Divide” which examines the following question:
“Is the divide between generations really that wide, or is it just a matter of adjusting expectations on both sides to facilitate the transition between the industry’s founders and their heirs?”
It’s well worth the read regardless of your generation.