Massive Asset Transition Offers Big Opportunity for Advisors

Massive Asset Transition Offers Big Opportunity for Advisors

As the Baby Boomers move into retirement, their $50 trillion in assets will move with them -- and they’ll need professional help with the transition, according to Roger Ochs, president and CEO of broker-dealer HD Vest Financial Services.

n his opening address at the company’s annual meeting for its financial advisors, Connect2016, being held this week in the Washington, D.C., area, Ochs explained that the 120 million households in the United States hold around $100 trillion in assets, in everything from homes and other real estate to retirement and investment accounts, to small businesses, and more. Boomers own roughly half of that, he noted, and as they transition to their post-work lives, they will need to figure out how to structure it so that it meets their income and spending goals.

“They’re going to transition to retirement over the next 15 to 18 years,” Ochs said. “That’s the tsunami of assets that will be transitioning, if you will.”

As an example, Ochs cited the significant amounts of money that will be moving out of 401(k) accounts and into IRAs as people leave their employers -- $439 billion will make that transfer in 2016 alone.

The Boomers will also face major liquidity events as they downsize to smaller homes or assisted-living facilities, and as those who own businesses determine what to do with them.

“Somebody’s got to advise people on all that, and at the same time, there’s been a net decrease in the number of advisors out there,” Ochs said. “That’s a tremendous opportunity.”  Read more on Accounting Today.