Displaying items by tag: baby boomers

Thursday, 10 May 2018 11:24

Advisors are Pursuing Younger Clients

(New York)

The industry has been talking about it for years, but now it appears to be happening in earnest—advisors are finally targeting younger clients in force. While Baby Boomers dominate the industry’s AUM right now, 42% of firms say they are actively changing their marketing and networking to attract Gen Xers and Millennials. TD Ameritrade comments that “In just five years, RIAs expect 41% of their clients to be Gen Xers or millennials. This should be a wake up call to those who think that Next Gen wealth is literally still a generation away”.


FINSUM: The tide is really starting to shift and it is going to happen faster and faster over the next few years as Baby Boomers age and the wealth of the young grows.

Published in Wealth Management
Monday, 05 February 2018 10:46

Some Good News About Stock Market

(New York)

Okay, so there is a lot to be gloomy about with the stock market right now. Stocks had a terrible run last week and are off to a poor start today. However, looking in the longer-term, there is some heartening news. That news is that despite some forecasters saying the demographic backdrop for stocks looks weak as Baby Boomers begin to withdraw money as they retire, all that slack, and perhaps more will be taken up by the Millennial generation, which is the largest in the US.


FINSUM: Here is an additional argument we found interesting—that compared to market history, stock returns for the period from 2000 to 2016 were very weak on a relative basis. Coupled with the demographics, it makes one think there may some long-term potential left for this market.

Published in Eq: Large Cap
Monday, 05 February 2018 10:45

Robo Advisors Aren’t Stealing Clients

(New York)

For years the big fear across the wealth management industry was that robo advisors would steal clients for human advisors and eventually leave the latter jobless. However, several years of evidence shows that is not actually what is happening. First of all, it is not Millennials which are the biggest consumers of robo services, rather it is baby boomers. For instance, Vanguard reports that 85% of those enrolled in its robo are over the age of 50. Even at Merrill’s Edge platform, the percentage is 45%. Additionally, the ~$200 bn that has been brought under management by robos does not seem to have migrated out of human-advised accounts, but rather is new money coming into the industry, representing pure growth.


FINSUM: While the threat of robos has been lessening over the last couple of years, this is downright positive news. Rather than eating away at human advisors, robos seem likely to actually bring more capital to the table.

Published in Wealth Management
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