Planned out: Revenue is projected to continue increasing as financial markets improve

IBISWorld’s industry research report on Financial Planning & Advice provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.


Industry Threats & Opportunities

  • As more Americans near retirement age, they will seek industry services for their finances
  • Consumers and institutions have been bargain hunting, leading to a decline in industry operators
  • The industry will continue growing as a result of appreciating capital markets
  • Industry Analysis & Industry Trends

    Growth in the Financial Planning and Advice industry has compounded swiftly over the past five years. Prior to the current five-year period, increased unemployment and falling disposable income negatively impacted new and recurring advice fees. Since consumers had less available income, they opted to save money or pay off debts instead of capitalizing on investments. Eventually, a return to economic growth and employment reversed this trend. Over the five years to 2022, 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 (AUM) for the industry and raise revenue generated from fees charged on the value of AUM.

    Industry Report - Starting a New Business Chapter

    The industry's barriers to entry include licensing, experience, marketing and regulatory costs. Before an individual can become a licensed financial advisor, they must pass a Series 65 or 66 Registered Investment Advisor (RIA) Law exam. These exams demand substantial costs, and they also require time for studying.

    Once an individual is licensed, the advisor must focus on marketing and prospecting for potential clients. However, it is very difficult to start off in the industry as a financial advisor with little or no experience. Prospective clients look for an advisor with an established track record, a clean Financial Industry Regulatory Authority (FINRA) record and a strong client base. New financial advisors must spend time and money on lead generation. Lea

    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
  • Experienced work force
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and S&P 500 in the Financial Planning & Advice industry impact industry performance..

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    Industry Products

    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

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • S&P 500
  • Investor uncertainty
  • Median age of population
  • Households earning more than $100,000
  • Regulation for the Investment Management industries

  • Current Performance
  • Revenue
  • A new landscape
  • Mergers and acquisitions
  • 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

  • Products & Markets
    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 Industry Products and Services Segmentation

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

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesOther 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
    Major Companies
    Morgan Stanley Wealth ManagementWells Fargo & CompanyBank of America Corporation Ameriprise Financial Inc.
  • Table: Morgan Stanley Wealth Management - financial performance
  • Table: Wells Fargo & Company - financial performance
  • Table: Bank of America Corporation - financial performance
  • Table: Ameriprise Financial Inc. - financial performance

  • Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Financial Planning & Advice Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (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
    Table: Industry Financial Ratios
    Jargon & Glossary
    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.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
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    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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