FAs Have More Potential Clients Than Ever Before
The number of Americans likely to need the services of financial advisors is at record highs, according to the Orange County Register.
There were 9.4 million Americans with a net worth of $1 million to $5 million, not including their primary residence, according to a recent Spectrum Group report cited by the newspaper. That’s compared to 7.9 million in 2006, which was followed by a drop to 5.9 million in 2008 after the financial crisis, the Register writes.
Meanwhile, the ranks of the mass affluent, or those with a net worth of $100,000 to $1 million, have grown from 24.3 million in 2006 to 30.5 million last year, according to the report cited by the paper.
But growth in the number of the ultra high net worth, or those with a net worth of $5 million to $25 million, has grown only slightly: as of 2016, there were 1.26 million Americans in the group, compared to 1.2 million in 2006 and an intervening dip to 760,000 in 2008, the Register writes. Financial advisors aiming for the very top are looking at 156,000 prospects with a net wroth of $25 million or more, among whom are 540 billionaires, according to the paper.
Advisors may want to tailor their approach in luring such wealth, however. According to Spectrum’s study, the average age of an American millionaire is now 62 years old, while among the mass affluent it’s 58, the Register reports. The ultra high net worth prospect’s average age is 65, meanwhile. But prospects with $25 million or more are only 58, on average — and no wonder, given that three of the top 10 richest Americans — Google founders Larry Page and Sergey Brin and Facebook founder Mark Zuckerberg — are under 45, according to a Forbes ranking cited by the Register.