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

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....read more.

Industry Statistics & Market Size
Revenue
$56bn
Annual Growth 12-17
8.1%
Forecast Growth 17-22
Profit
Employment
216,881
Businesses
117,984
What Our Customers Say

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 Report - Industry Key Buyers Chapter

    The Financial Planning and Advice industry has a high to medium level of concentration, with the four largest players – Morgan Stanley, Wells Fargo, Bank of America and Ameriprise Financial – accounting for an estimated 49.7% of total industry revenue. A series of large-scale acquisitions, precipitated by the recession, vastly increased the market share concentration of the industry's largest players. For example, Bank of America increased its advisor force dramatically with the acquisition of Merrill Lynch advisors. The joint venture between Morgan Stanley and Citigroup resulted in 16,700 financial advisors for the Morgan Stanley Global Wealth Management group. Wells Fargo's acquisition of Wachovia also increased the company's footprint in the industry...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
  • 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..

    shopping_cartPURCHASE OPTIONS

    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
  • 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

  • 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
    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
    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

  • 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
    Includes:
  • 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
    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?

    The Financial Planning & Advice industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

    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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