Addressing a gathering of more than 160 independent registered investment advisors (RIAs) at its annual EXPLORE
, executive vice president and head of
Schwab Advisor Services
, revealed new Schwab research on “
” - affluent individuals between the ages of 30 and 45 who are following on the heels of advisors’ current pre-retired or retired clients. Schwab believes these affluent investors, who currently control nearly $3.5T in investable assets,
represent one of the most significant opportunities for RIA firm growth in the decade ahead.
Bernie Clark, executive vice president and head of Schwab Advisor Services (Photo: Business Wire)
“The findings from our
Charles Schwab Generation Now Study for RIAs
give RIAs an important window into who these individuals are, how they think and feel about the world around them, what matters to them, how they make decisions and their attitudes about investing, finances and advice,” said Clark. “We are excited because the research clearly shows that the RIA model is right for these individuals, and these insights provide a jumping off point for us to work together to construct the strategies for growth and transition that will help enable RIAs to continue their success.”
According to Schwab’s latest
Independent Advisor Outlook Study (IAOS)
, advisors report that 40 percent of their clients are retired and 30 percent are less than ten years from retirement. Among clients who are already retired, 60 percent are drawing down assets, including principal, from their portfolios. Acquisition of future assets has become an important opportunity for many in the industry.
In the Generation Now Study (so named to reflect the immediate opportunity this group represents for independent advisors), Schwab Advisor Services set out to understand the investing mindset of this group in order to share insights and work with RIAs to understand implications for everything from client service and talent management to succession and legacy planning.