Market saturation: Strengthening external competition will slow growth from increased income and uncertainty

The Financial Planning and Advice industry in California is comprised of advisers and planners that provide wealth management and other financial services, such as portfolio management, protection planning and brokerage services, for their clients. Over the five years to 2017, the industry in California has been growing. Over the past five years, assets under management in California has grown in line with a rise in per capita disposable income and the value of equities markets. As per capita disposable income has grown, California residents have had more financial resources available to invest, thus prompting clients to work with industry operators. These trends are expected to persist over the five years to 2022...read more.

Industry Statistics & Market Size
Revenue
$6bn
Annual Growth 12-17
6.3%
Forecast Growth 17-22
Profit
Employment
34,024
Businesses
22,151
What Our Customers Say

Industry Threats & Opportunities

  • Investor uncertainty has increased in recent years, encouraging consumers to hire professional financial advisers
  • More clients have turned to industry operators as uncertainty about investments has risen
  • As the state economy strengthens, per capita disposable income in California is expected to increase
  • Industry Report - Industry Investment Chapter

    The Financial Planning and Advice industry in California exhibits a low level of capital intensity, much like the industry at the national level. In 2017, industry operators dedicate an estimated $0.03 to capital expenditures for every $1.00 spent on wages. Productivity in this industry is measured by the amount of revenue generated from each financial adviser. Higher revenue is linked to the level of experience, training, certifications and skill of each adviser. In general, wages reflect the importance of rewarding and retaining skilled staff. Therefore, wages are the most significant operating expense for industry operators, accounting for 38.0% of revenue.Conversely, industry operators dedicate a relatively small amount of revenue to capital expenditures. The...purchase to read more.

    Additional Insights for the Financial Planning & Advice in California Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Financial Planning & Advice in California Industry are

  • Having a loyal customer base
  • Having a good reputation
  • Experienced work force
  • IBISWorld analysts also discuss how external factors such as Per Capita Disposable Income in California and S&P 500 in the Financial Planning & Advice in California industry impact industry performance..

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    What is the Financial Planning & Advice in California Industry?

    This industry comprises companies in California that provide financial planning, financial advice and wealth management to individuals, businesses and institutional clients. Operators also carry out other activities such as portfolio management, protection planning and brokerage services. This industry does not include mutual fund companies, hedge funds, discount brokers, insurance brokers or other companies that deliver these services outside the context of a written financial plan.

    Industry Products
  • Personal financial planning and advice
  • Personal investment management
  • Business and government financial planning and management
  • Other Services
  • Industry Activities
  • Fee-based financial investment advice services
  • Financial planning services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per Capita Disposable Income in California
  • S&P 500
  • Investor uncertainty
  • Number of adults aged 65 and older
  • Households earning more than $100,000
  • Regulation for the Investment Management industries

  • Current Performance
  • Revenue
  • An expanding industry
  • Chart: Revenue Growth

  • Industry Outlook
  • Growing revenue
  • Rising competition
  • Table: Financial Planning & Advice in California Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Financial Planning & Advice in California Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Credit Unions
  • Health & Medical Insurance
  • Investment Banking & Securities Dealing
  • Life Insurance & Annuities
  • Open-End Investment Funds
  • Portfolio Management
  • Savings Banks & Thrifts

  • Products & Services
  • Personal financial planning and advice
  • Personal investment management
  • Business and government financial planning and management
  • Other Services
  • Chart: Financial Planning & Advice in California Industry Products and Services Segmentation

  • Major Markets
  • Individuals and households
  • Businesses
  • Other clients
  • Governments
  • Chart: Major Market Segmentation for the Financial Planning & Advice in California Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Financial Planning & Advice in California

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Financial Planning & Advice in California Industry

  • Bank of America Corporation Morgan Stanley Wealth ManagementWells Fargo & CompanyAmeriprise Financial Inc.Charles Schwab Corporation
  • Table: Bank of America Corporation - financial performance
  • Table: Morgan Stanley Wealth Management - financial performance
  • Table: Wells Fargo & Company - financial performance
  • Table: Ameriprise Financial Inc. - financial performance
  • Table: Charles Schwab Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Financial Planning & Advice in California Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Financial Planning & Advice in California Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • S&P 500 (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Assets Under Management (Aum)
  • Assets (e.g. equities, fixed income, real estate or alternative investment vehicles) that industry operators advise clients on.
  • Financial Industry Regulatory Authority (Finra)
  • A private, nongovernmental organization that regulates brokerage firms and securities exchange markets.
  • High-Net-Worth Individual
  • Individuals with at least $1.0 million in investible assets, excluding moveable property and primary residences, or at least $1.5 million held jointly with a spouse.
  • Why buy this report?

    IBISWorld’s industry research report on Financial Planning & Advice in California can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Financial Planning & Advice in California:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Financial Planning & Advice in California market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Financial Planning & Advice in California, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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