Survey: 86% of Young Investors Ready to Fire Parents’ Advisor —Financial Planning

Firms Need to Update Technology, Use Social Media, and Hire Younger Advisors, Says Tom Nally of TD Ameritrade Institutional

Rachel F. Elson at reports at Financial Planning:  Advisory firms need to start hiring young financial advisers to attract and keep the business of Generation X and Y investors, who will have accumulated $28 trillion of personal wealth by 2018, up from $2 trillion in 2011, said Tom Nally, president of TD Ameritrade Institutional.

A recent survey showed that, if given the chance, 86% of young investors would fire their parents’ financial adviser, he said. More:

Adapting to a changing client universe is critical for advisors, says TD Ameritrade Institutional president Tom Nally.

The wealth shift to the echo boomer generation presents big opportunities: The wealth accumulated by Generations X and Y will increase to $28 trillion by 2018 from $2 trillion in 2011, he said Thursday morning in a keynote at the company’s big annual advisor conference.

But planners will need to adapt for a new client base, he argued, citing a study that found 86% of younger investors said they’d fire their parents’ advisors. Advisors will need to upgrade their technology, embrace social media and bring in younger team members.  

To that end, Nally announced a pair of programs intended to help develop talent for the profession’s growing needs. The NextGen Scholarship program will award 10 separate $5,000 scholarships to students enrolled in undergraduate financial planning programs annually beginning in 2013. In addition, the company will make a $50,000 annual grant to a university that “best demonstrates a commitment to educating the industry’s future financial professionals.”

TD Ameritrade Says 86% of Young Investors are Ready to Fire Parents’ Advisor

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