As the investment advisory landscape continues to shift, a new Charles Schwab survey of advisors at major financial firms finds that more than three-fourths (76%) of those surveyed expect a continued increase in the number of advisors becoming registered investment advisors.
Younger advisors, in particular, show even more proclivity for independence, with 65% of those surveyed under the age of 40 finding the idea of becoming an RIA appealing, compared to 43% of those aged 40 and over.
“These numbers immediately jumped off the page, and speak very well for the movement to independence,” says Tim Oden, senior managing director of business development at Schwab Advisor Services. “It shows that this is not a fad, especially given the interest in the independent model from those under 40, who are traditionally thought of as the succession plan for wirehouse advisors. The fact that they’re so interested speaks volumes about the future of the independent space.”
The top three benefits cited by advisors for becoming an RIA include the potential for larger income; the freedom that comes with running their own business, and; the ability to place a higher priority on client service and communications.