November 11, 2019
Louis Diamond Quoted
By Alana Pipe
More than a third of financial advisors are expected to retire in the next 10 years, which will result in an estimated $7.8 trillion in assets changing hands, according to a recent report from Cerulli Associates.
In anticipation of this retirement boom, wealth management industry firms are scrambling to ensure the smooth transfer of clients to the next generation of advisors while keeping assets in house.
For younger advisors, building a business at a wirehouse like this comes at a price, says Louis Diamond, executive v.p. and senior consultant of Diamond Consultants, a recruiting firm.
“Wirehouses like Bank of America and Merrill are hiring people without much experience at all, training them, trying to create a next generation of salaried employees who have a similar or homogenous way of thinking, and they will take over the book of retiring advisors,” Diamond says. “The bank will have drastically lowered compensation for these advisors, because of the salary and bonus they’re paying them… It’s a different skillset to go out and find clients to build your own business.”