Financial Advisor Business Plan Template

Written by Dave Lavinsky

Financial Advisor Industry Analysis

Over the next five years the Financial Advisor industry is expected to benefit from appreciating asset values and higher yields in equity and fixed-income markets.This is expected to ultimately lead to increased assets under management (AUM) during the period.  Industry revenues are expected to reach just over $62 billion.

As the economy improves, the number of wealthy households and institutions requiring financial management services will likely increase, raising the value of AUM for operators. Rising borrowing costs and geopolitical tensions are anticipated to encourage consumers to consult professional services for managing their finances and protecting their assets.

The aging of the US population is another long-term trend in the industry’s favor. The baby boomer generation, which is the largest generation in US history, is gradually reaching retirement age. As individuals in this demographic approach retirement and accumulate more wealth, their need for financial planning services is increasing.

In addition, the emergence of robo-advisors and other financial technology companies offering financial planning will likely continue to make industry services more accessible for many customers, increasing the flow of assets into the industry over the next five years.