Fewer Financial Planners Going Forward – Mass Exodus in the Industry
Often, large financial collapses in the stock market or major downturns in the economic business cycle will cause complete turmoil in professional financial services industry. The stock market collapse in 2008 has caused most financial planners, and stockbrokers to watch their incomes cut in half or more. Meanwhile, many of their clients are so upset they have left to go to new brokers, or they have put their money into bonds and CDs.
Still, even when the financial planners and brokers lose their income they are still required to participate in ongoing education to keep their licenses up. Worse, many politicians have said they are going to fix things by increasing regulation, meaning there will be more ongoing education, more rules, and more regulations in the future. This means even those that survive until the next year when things pick up, they will have a tougher time earning money in the future.
Right now, many financial professionals are leaving the industry, and these folks are leaving the industry in mass. Those that remain realize that the paperwork and the litigious risks are so great, that they won’t bother taking any clients that have less than $500,000 to invest with. It’s just not worth it. This causes a few other problems in the market place, especially for middle class folks who are trying to build up their nest egg, investments, and retirement accounts.
If the remaining financial planners are not interested in taking that business, they are liable to get wrapped up with a stockbroker who will just churn their account. This has been one of the toughest periods for financial professionals in over 30 years, and those that remain are not have the woods yet. I hope you will please consider all this.