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protection , caregiving referrals and longterm care . Linda ’ s four partners each focus on other legacy capabilities , retirement
plans , investment portfolios , bonds and tax management . They say , “ For our clients and their families , Linda is the glue .”
The 30-Year Flood ( Of New Business )
Our demographic issues are so wellknown that even mentioning “ baby boomers ” can get you eye rolls . The advisory business is being shaped by this demographic megatrend , but there ’ s uneven awareness about it . Many advisors have not been immediately affected by the loss of clients and thus are complacent about their current terrific financial results . So the response to the demographic changes has varied widely .
The impact of our clients ’ longevity has been felt slowly , but it will eventually be a
The annuity buyer is getting younger , which reflects a lot of the interest from Generation 2 . And we know that they are just getting started ; this tide will lift all participating boats .
game-changer for alert advisory practices leaning into the trend , as well as for companies providing capabilities and products to support clients living longer . Adaptable firms have an opportunity to capture market share at a rate we have not seen since managed accounts started steamrolling stockbrokers . That part of the industry captured $ 12 trillion from a dead start .
A similar path could be enjoyed by companies offering retirement solutions , including protected income . Annuity sales were a record at over $ 100 billion in the first quarter of 2024 . Given the slim penetration rate of annuities and other retirement income solutions within the advice industry , I can see upside that is multiples of the current run rate as they grab a pretty basic share of the retirement pie . The annuity buyer is getting younger , which reflects a lot of the interest from Generation 2 , which has learned from watching their parents . And we know that they are just getting started ; this tide will lift all participating boats .
Longevity planning and solutions , stimulated by major life-changing events , are the biggest potential disruptors and drivers of business valuation since the move from advisors selling products to positioning managed solutions .
So what is your plan ?
STEVE GRESHAM is the managing principal of NextChapter , a consulting firm solving for retention and organic growth by solving for longevity . He is also a senior education advisor to the Alliance for Lifetime Income . See more at nextchapterinnovation . com
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sponsive to foreign governments , including many from countries in the Middle East with human rights policies that are often in conflict with the values of large numbers of Americans .
That said , what was most surprising about the Fisher transaction was not that ADIA provided capital but that it did so openly , and that this aspect of the investment was trumpeted in the media . It will most certainly trigger more than a little scrutiny of Abu Dhabi ’ s record and policies , which could potentially damage Fisher ’ s brand and even scare away large
This deal will most certainly trigger more than a little scrutiny of Abu Dhabi ’ s record and policies , which could potentially damage Fisher ’ s brand and even scare away large numbers of current and potential clients . numbers of current and potential clients .
There are numerous other sovereign funds ( such as Norway ’ s Government Pension Fund Global , the Canada Pension Plan , the Ontario Teachers ’ Pension Plan , Singapore ’ s GIC , etc .) that could provide the same kind of long-term capital but without the accompanying political baggage . And many will likely take a hard look at the great long-term investment opportunity that the U . S . wealth management industry offers .
Nevertheless , direct investments by sovereign funds will most certainly impact the industry ’ s competitive landscape . Today there is a continuum of aggregators , ranging from those that are already fast-growing , fully integrated businesses to many that are simply confederations of small businesses that have largely been somnambulant for more than a decade .
Integrating the latter and then reigniting their client recruitment programs will be an arduous task requiring a great deal of time , money and patience . Unfortunately , they currently are mostly backed by PE firms with only three-tofive-year investment horizons , far too short a time frame to generate attractive returns on the necessary investments .
However , this calculus will fundamentally change if sovereign funds disintermediate PE firms as the core source of aggregator capital . That will enable them to transform into much more formidable competitors focused on organic growth and capturing market share rather than worrying about near-term profitability .
MARK HURLEY is the CEO of Digital Privacy & Protection .
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