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Article: New adviser comp models emerging to serve retirees; Retiree market's complicated challenges may mean more work for less pay unless firms revamp their fee structures.(News)
- Article from:
- Investment News
- Article date:
- November 2, 2009
CopyrightCOPYRIGHT 2009 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Jessica Toonkel Marquez
Product providers and advisory firms are grappling with ways to help advisers overcome a growing challenge: how to serve an expanding retiree market in which demand for advice increases as client assets and adviser remuneration decline.
Total investible assets for retail investors 55 to 70 are expected to grow from $9.1 trillion in 2008 to $24.2 trillion in 2012.
For advisers, many of whom charge fees based on the amount of a client's assets, serving this market comes with challenges. Not only does it entail a lot more planning and complicated products, but it also means that adviser revenue declines over time.
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