College Programs Spring Up to Address Coming FA Shortage
The financial advice industry is about to experience a significant drop in head count as more and more advisors are set to retire; but a number of college programs are aiming to address the potential gap in talent, according to news reports.
Around 40% of advisors are set to retire over the next decade, according to research firm Cerulli Associates, CNBC.com writes. Meanwhile, there are more certified financial planners over 70 than under 30, the CFP Board says, according to the TV news channel’s website.
“We are really on the edge of a succession cliff,” Marina Shtyrkov, wealth management research analyst at Cerulli Associates, tells CNBC.com. “In the next decade, advisor head count is going to begin declining pretty rapidly.”
But college programs aimed specifically at training financial advisors are cropping up, according to the website. Among them is Central Washington University in Ellensburg, Wash., which last year brought on a personal financial planning Ph.D. student at Texas Tech University in Lubbock, Texas, to help develop a program for financial planners, CNBC.com writes. Eighteen students are scheduled to graduate from the program in June, and 50 students are expected to join it in the fall, according to the website.
Utah Valley University in Orem, Utah, has 300 personal financial planning majors, CNBC.com writes.
But the program could in fact have as many as 500 declared majors if it includes students currently away on two-year overseas missions for The Church of Jesus Christ of Latter-day Saints, Luke Dean, associate professor of personal finance planning at the university, tells the website. And University of Arizona’s financial planning program, in Tuscon, Ariz., is in its first year and already has 40 students, Rick Rosen, program director of the financial planning program at the university, tells CNBC.com.