What Advisors’ Client Lists Reveal Right Now
A recent InspereX Pulse Survey of 487 financial advisors points to a clear pattern: many firms still center their work on older clients. Only 18% of advisors’ clients are under age 50, while 59% are in their 60s or older. That skew suggests the advisory landscape remains weighted toward retirees and near-retirees—even as younger investors begin to build wealth and seek guidance.
Where Younger Clients’ Money Comes From
For clients aged 50 and under, advisors say most assets come from employment—73% cited earned income as the main source. Just 12% attributed wealth in this group to inheritance. Taken together, those figures underscore how younger investors tend to rely on paychecks and savings, not windfalls, and how their financial progress is tied closely to job stability and career growth.
How Social Media Shapes Younger Investors
Advisors were often struck by how heavily younger clients lean on social media for investing know?how. About 64% noticed that reliance. Another 34% observed that younger clients can be reluctant to admit they want help. And 32% reported limited investment knowledge in this group. It adds up to a gap: plenty of curiosity and input, but not always from sources that build confidence or a plan—an opening where advisors can make a difference.
Why Advisors Lose Clients
Asked about attrition, advisors most often pointed to death as the leading cause of client loss (61%). Beyond that, 14% said relationships faded because they didn’t spend enough time staying in touch. The takeaway is straightforward: nurturing relationships across life stages matters. It protects the bond—and the continuity of service with families and heirs—when life changes.
Opportunities Left on the Table
Chris Mee, Managing Director at InspereX, noted that high client turnover combined with a client base concentrated in older age brackets signals missed opportunities. Advisors who don’t actively engage younger investors—and the future heirs of current clients—risk ceding those relationships just as wealth transitions and new planning needs take shape.
Winning New Business—and Why Clients Switch
There’s also good news: 82% of advisors said they’ve won clients from competitors because of communication breakdowns elsewhere. When prospects move, the top reasons include:
- 25% cited competitors missing performance expectations.
- 24% pointed to a lack of innovation from other advisors.
- 20% said poor financial advice drove the switch.
The message lands cleanly. Clear communication—and then showing up consistently—helps you keep the clients you have and attract the ones you want.
Advisory Firms Are Reaching Beyond the Local Map
Many advisors say their footprint has expanded in recent years. Half (50%) reported winning new clients outside their local area, and 49% saw more referrals coming from beyond their immediate region. Only 31% said their business remains strictly local. Word-of-mouth travels fast, and today it tends to travel farther.
What Clients Struggle With, According to Advisors
While 26% of advisors said they face no client challenges, the rest identified recurring pain points:
- Clients prioritizing advice from family even when it’s off-base (33%).
- Poor understanding of risk—how much, how often, and why it matters (27%).
- Unrealistic expectations about results and timelines (25%).
- Gaps in basic financial knowledge (19%).
- Overly passive investing that ignores changing conditions (16%).
These are fixable issues. They call for patient education, expectation setting, and plain?English explanations of tradeoffs—done early and revisited often.
How Advisors Say They Stand Out
A strong majority—72%—said they differentiate by building custom portfolios rather than relying on off?the?shelf models. Beyond investments, advisors pointed to financial planning strategies (31%) and customized solutions (21%) as key ways they deliver something distinct. The throughline: tailoring beats templating.
What’s Working for Growth in 2024
For client acquisition in 2024, unsolicited referrals lead the way, cited by 79% of advisors. Other approaches also contribute: asking for referrals (39%), networking (38%), hosting client appreciation events (24%), and running educational workshops (18%). When people feel informed and cared for, they tend to introduce you to the next person.
Digital Marketing: Still a Weak Link
Traditional relationship channels outperform digital for many firms. Advisors reported low effectiveness from online tools when it comes to acquiring new clients: LinkedIn (7%), Facebook (5%), social ads (4%), direct mail (3%), SEO (2%), and Google AdWords (2%). The gap suggests room to sharpen digital strategy so it complements, rather than replaces, the personal touch.
What’s Next for Advisory Practices
Looking ahead, Mr. Mee emphasized the ongoing shift toward technology integration and more tailored, client?specific solutions. As younger generations build assets and face more complex decisions, useful advice needs to meet them where they are—clear, relevant, and easy to act on. Adapting to how these clients learn and communicate isn’t optional; it’s the bridge to long?term relationships.
About InspereX
InspereX focuses on structured products distribution and trading. Founded 25 years ago by Tom Ricketts—who also holds prominent roles with the Chicago Cubs—the firm has built a broad presence in retail markets. Its record includes representing over 400 issuing entities and distributing to more than 1,500 partners, with more than $750 billion in securities underwritten across its network.
Frequently Asked Questions
What did the survey say about advisor client age mix?
It found that only 18% of clients are under 50, while 59% are in their 60s or older. Many firms remain oriented toward retirees and near?retirees.
How are younger clients funding their portfolios?
Primarily through earned income. Advisors reported that 73% of assets for clients 50 and under come from employment, while only 12% reflect inheritance.
Where do younger investors get information—and what’s the catch?
Advisors noted heavy reliance on social media (64%), coupled with reluctance to ask for help (34%) and limited investment knowledge (32%). It creates a guidance gap advisors can fill.
Why do clients switch advisors, and what helps win them?
Breakdowns in communication often open the door—82% gained clients from peers for that reason. Performance shortfalls (25%), lack of innovation (24%), and poor advice (20%) are other triggers. Clear, steady communication is a durable edge.
Which growth tactics worked best in 2024?
Unsolicited referrals led at 79%, with asking for referrals (39%), networking (38%), client appreciation events (24%), and educational workshops (18%) also contributing. Digital channels trailed in reported effectiveness.
