Wealth management is a fickle field in which to work. Turnover is massive, but those that make the cut and build a strong book of business have longevity. Crazy longevity. So much so that the business could be flipped on its head in a decade.
As few as 4% of all financial advisors working today are under the age of 30, according to the Times. The average financial advisor in the U.S. is over the age of 50, which is rather astonishing.
There are several issues that led to this problem. One: most every wealthy individual would rather invest his or her net worth with a grey hair than some kid in a suit. That will likely never change. Two: financial advisors with impressive books generally don’t want to retire, nor should they. Getting assets under management is the hard part. Earning a percentage of those assets each year is the fun part.
Compounding those issues is the fact that many firms have given up on their training programs, likely because they weren’t seeing an equitable return on their investment. One adviser told us that he came in with a class of 30 recruits. Three years later, he was the only one remaining. He bolted for a new firm before his fourth anniversary.
Banks are trying to stem the tide, though. Many are now offering base salaries to entice younger talent, rather than paying them a draw. We’ll have to wait and see what happens over the next decade as the octogenarians retire. Someone has to do the job.
More than ever before, banks and recruiters want little to do with the unemployed. If you can, stem the urge to quit.
Be warned: if you embark on a CFA Charter, studying for the exams has the potential to eat up your mid-20s. Worse, it may do strange things to your head.
Goldman Sachs is combining its healthcare and retail investment banking groups. The two groups’ heads will combine to run the newly created unit.
“Pre-gaming with Bloody Mary’s sounds awesome, but the sodium is a killer at high altitude.” That and 20 other pieces of travel advice for bankers, courtesy of Goldman Sachs Elevator.
With others pulling out of fixed income, Goldman Sachs just hired two new bond traders. Both are former Goldmanites.
The FBI on Wednesday arrested Daryl Payton and Benjamin Durant as part of an insider trading investigation. The two reportedly worked together at Euro Pacific Capital. Former Schroders trader Damian Clarke has also been charged following a separate investigation.
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Buzz Around the Office
Nearly 175 gamblers bet money that Uruguay’s Luis Suarez would bite someone during the World Cup. He did.
Quote of the Day: “America’s ‘got a fever’ (temporarily at least), and the only prescription is more soccer,” Jeffrey Saut, chief investment strategist at Raymond James, on the expected lack of volatility in the market during today’s World Cup soccer match.