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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