Planning ahead: Revenue will rise as equity and fixed income markets provide favorable yields, and the aging population provides a stable source of demand

Growth in the Financial Planning and Advice industry has compounded swiftly over the five years to 2018. Advisers generate revenue in a variety of ways, including financial planning fees, investment commissions, insurance commissions and other fees. Over the past five years, economic growth and rising employment has pushed the industry upwards. Over the five years to 2023, revenue is projected to continue to increase as financial markets improve. IBISWorld forecasts that the growing number of affluent households and rising equity markets will help increase total assets under management for the industry and raise revenue generated from fees charged on the value of assets under management...purchase to read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Rising employment and disposable income have boosted consumer demand for financial planning services
  • Higher investor uncertainty gave rise to more consumers seeking the services of financial planners
  • Fixed-income markets are expected to propel revenue for the Financial Planning and Advice industry
  • Industry Report - Industry Key Buyers Chapter

    The Financial Planning and Advice industry has a moderate level of concentration, with the five largest players – Morgan Stanley, Bank of America Corporation, Raymond James Financial, Wells Fargo and Ameriprise Financial – accounting for an estimated 30.8% of total industry revenue. A series of large-scale acquisitions, such as Bank of America's acquisition of Merrill Lynch and Morgan Stanley's joint venture with Citigroup, vastly increased the market share concentration of the industry's largest players. Wells Fargo's acquisition of Wachovia also increased the company's footprint in the industry. Financial planning is offered through many adjacent industries, such as Accounting Services (IBISWorld report 54121c)...purchase to read more.

    Additional Insights for the Financial Planning & Advice Industry

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

  • Having a loyal customer base
  • Having a good reputation
  • Market research and understanding
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Median age of population in the Financial Planning & Advice industry impact industry performance..

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    What's in this report

    What is the Financial Planning & Advice Industry?

    This industry comprises companies that provide financial planning, financial advice and wealth management to individuals and business clients. Operators also offer advice, in conjunction with 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
  • Business and government financial planning and management
  • Personal financial planning and advice
  • Personal investment 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
  • Median age of population
  • S&P 500
  • Households earning more than $100,000
  • Regulation for the Investment Management industries

  • Current Performance
  • Revenue
  • A new landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Economic improvements
  • Competition and streamlining
  • Table: Financial Planning & Advice Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Financial Planning & Advice 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
  • Business and government financial planning and management
  • Personal financial planning and advice
  • Personal investment management
  • Other Services
  • Chart: Financial Planning & Advice Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Individuals and households
  • Businesses and governments
  • Chart: Major Market Segmentation for the Financial Planning & Advice Industry

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

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

  • Industry Globalization
    Ameriprise Financial Inc., Bank of America Corporation, Morgan Stanley Wealth Management,
  • Table: Ameriprise Financial Inc. - financial performance
  • Table: Bank of America Corporation - financial performance
  • Table: Morgan Stanley Wealth Management - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Financial Planning & Advice 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 Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • S&P 500 (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Assets Under Management (Aum)
  • The value of client assets that are under advice.
  • Baby Boomer Generation
  • The largest generation in US history; currently entering retirement age.
  • High Net-Worth Individual (Definition 1)
  • An individual with at least $1.0 million in assets, excluding collectibles, consumable goods, durable goods and primary residences.
  • High Net-Worth Individual (Definition 2)
  • An individual with at least $750,000 managed by an adviser, or at least $1.5 million of net worth held jointly with a spouse, including the primary residence.
  • No-Load Fund
  • A fund that requires no fee or commission to purchase.
  • The Rand Report
  • Report commissioned by the Securities and Exchange Commission about "Investor and Industry Perspectives on Investment Advisers and Broker-Dealers."
  • Wrap Account
  • An account where fees are based on a fixed percentage of total assets under management.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Financial Planning & Advice Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Financial Planning & Advice industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    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:
    • 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 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, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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