In an industry that is continually evolving, the need for young, dynamic talent in financial advising has never been more critical. The average age of financial advisors continues to climb, with many in the industry now hovering around 56 years old. Data from the Certified Financial Planner Board of Standards highlights a significant age gap within the profession. While less than one-third of today’s financial advisors are under 40, industries such as technology boast nearly half of their workforce under that age. This makes the infusion of fresh talent into financial advising not only necessary but essential for future success.
Forbes and SHOOK Research have taken the initiative to identify and showcase the wealth management industry’s rising stars through the 2024 Best-In-State Next-Gen Wealth Advisors list. This prestigious list features 1,621 standout financial professionals who manage nearly $2.8 trillion in total assets. All of these individuals were born in 1985 or later, ensuring they have long careers ahead of them. To be eligible, these advisors also needed a minimum of four years of experience in financial advising.
The Need for Fresh Talent in Wealth Management
As financial markets grow increasingly complex, the demand for innovative solutions and fresh perspectives is more pressing than ever. The younger generation of advisors represents the future of the industry. Their ability to combine traditional financial principles with modern tools like direct indexing and tax-efficient strategies is paramount in helping clients navigate today’s financial landscape.
One advisor, Chris Dillon from UBS Wealth Management in Boston, highlights the importance of direct indexing and separately managed accounts. He notes, “On the equity side, we’ve had unbelievable success with direct indexing, separately managed accounts. When you have clients who make a lot of money, being extremely tax-efficient is one of our number one priorities.” This approach reflects the younger generation’s grasp of personalization and tax optimization—key drivers in helping high-net-worth clients achieve their goals.
Qualitative and Quantitative Excellence
To be selected for the Best-In-State Next-Gen Wealth Advisors list, candidates undergo a rigorous evaluation process conducted by SHOOK Research. This process involves a detailed review of both qualitative and quantitative factors. For the qualitative part, candidates are assessed through interviews, where best practices, client retention, and leadership capabilities are evaluated. The idea is to measure how well these advisors can build and sustain their businesses.
Additionally, quantitative data such as assets under management (AUM), revenue generated for their firms, and client retention are also reviewed. While investment performance isn’t a primary metric (since client goals and risk tolerances vary), the emphasis on AUM and client loyalty shows that these young professionals are not only growing their client base but retaining them, an essential factor in long-term financial success.
SHOOK Research’s rankings are designed to guide investors in choosing the right financial advisor while emphasizing that past performance is not necessarily indicative of future results. Neither Forbes nor SHOOK receive compensation from advisors for placement on these rankings, ensuring an unbiased approach to highlighting top talent.
Highlighting Prominent Advisors
Several notable professionals made it to the Forbes Best-In-State Next-Gen Wealth Advisors list, and they reflect a broad range of expertise and geographical diversity. Below are just a few of the exceptional advisors included:
- Amy Li, from Morgan Stanley Wealth Management in San Francisco, emphasizes simplicity and patience in her practice. She advises her clients to take complicated matters and break them down into easily understandable concepts, which is a hallmark of how next-gen advisors are adapting complex financial solutions for clients.
- Katie Hancock of Morgan Stanley Wealth Management in Tuscaloosa manages $4.8 billion in assets, serving clients with net worths typically between $25 million and $100 million. With a minimum account size of $5 million for new business, Hancock exemplifies the caliber of advisors on this list.
- David Brooks from Merrill Wealth Management in Montgomery manages $413 million in assets, serving clients with household accounts typically ranging from $1 million to $5 million. His success illustrates the growing importance of wealth advisors in smaller regional markets as well as the larger urban financial hubs.
Each of these professionals, along with the other advisors listed, has successfully demonstrated not just the ability to grow their client base but to foster trust and long-term relationships, which is vital to success in this industry.
The Importance of Mentorship and Team Building
A significant trend among next-gen wealth advisors is their focus on team building and mentorship. Many have not only built their practices but are also taking leadership roles within their teams, ensuring that the next wave of advisors will continue to carry the torch. This collaborative approach is crucial in the wealth management industry, where maintaining relationships with clients often requires a team effort.
An example of this can be seen in professionals like John Parker Wilson of Morgan Stanley Wealth Management in Birmingham, Alabama. With $2.6 billion in assets under management, Wilson leads a team that provides personalized financial services to high-net-worth clients, ensuring a high level of engagement and responsiveness. His approach to leadership reflects the trend of next-gen advisors stepping into future leadership roles.
Breaking Cultural Barriers
Another interesting characteristic of some next-gen advisors is their ability to bridge cultural gaps in wealth management. Advisors like Amy Li of Morgan Stanley have built successful practices by understanding the unique needs of culturally diverse clients, demonstrating how next-gen talent is bringing new perspectives to the industry.
Similarly, Zach Kohan of Merrill Wealth Management in Juneau, Alaska, has been successful in navigating the distinct financial needs of Alaskan clients, helping to manage $193 million in assets. His ability to adapt to different cultural and regional needs is a reflection of the versatility that many younger advisors bring to their roles.
Synopsis: The Future is Bright for Next-Gen Advisors
The 2024 Forbes Best-In-State Next-Gen Wealth Advisors list serves as a testament to the impressive talent emerging within the wealth management industry. These professionals are not just managing assets—they are shaping the future of financial advising through leadership, innovative practices, and a strong focus on client relationships. Their commitment to personalized service, tax-efficient strategies, and mentorship ensures that the financial advisory field is in good hands for years to come.
The next generation of wealth advisors is uniquely positioned to tackle the evolving challenges of the financial landscape. By combining traditional methods with cutting-edge technology and innovative solutions, they are redefining what it means to be a financial advisor in the 21st century.
As the industry continues to age, the importance of attracting and nurturing young talent cannot be overstated. These next-gen advisors are not only meeting the needs of today’s clients but are also preparing to guide future generations through their financial journeys, ensuring continued growth and prosperity for the wealth management industry.
