JERSEY CITY, N.J.--(BUSINESS WIRE)--There just aren’t enough investment advisors to keep up with the growing demand for financial advice. That’s bad news for investors seeking professional guidance, but it’s good news for young people looking for a career with long-term growth potential. In fact, the U.S. Bureau of Labor Statistics projects that the number of personal financial advisor jobs will grow three times as fast as for all other professions, making it one of the fastest-growing career fields through 2022.1
“RIAs as a group are aging: roughly half are 55 years or older, and many of them will be looking to retire over the next decade,” said Tom Nally, president, TD Ameritrade Institutional.2 “Add that with the fact that fewer than 8 percent of advisors are under 35, and it’s clear our industry needs more young professionals to join us and help families better manage their finances.”3
Through its NextGen Initiative, TD Ameritrade Institutional is working to bring younger talent and greater diversity to the registered investment advisor (RIA) industry. Including its annual scholarships, grants and a long-term sponsorship agreement with Texas A&M University, TD Ameritrade Institutional plans to invest $2 million toward helping attract next generation talent and raising awareness of the RIA industry on campuses across the country.
Scholarship program expands to include a focus on diversity
Now in its third year, the TD Ameritrade Institutional NextGen Financial Planning Scholarship & Grant Program for 2015 has been expanded to offer a total of 12 scholarships of $5,000 each to undergraduate students pursuing financial planning degrees.
Two new scholarships will recognize deserving scholars from demographic groups that are under-represented in the profession, including blacks, Hispanics, American Indians, Alaska and Hawaiian natives, other Pacific islanders, Asians and women. Though students from all backgrounds have always been encouraged to apply, the new scholarships are designed to ensure the NextGen program’s winners represent a broader spectrum of talent.
Serving an increasingly diverse client base
The financial advisory industry is mostly white and male. Women comprise just 12 percent of all financial advisors and 10 percent of RIAs, according to Cerulli Associates.3 The Bureau of Labor Statistics reports that women represent 36 percent of personal financial advisors, compared with 47 percent of all employed Americans 16 and older. Similarly, black or African-Americans represent just 8 percent of all financial services employees, versus 11.4 percent across all industries, according to the BLS.4
Yet the makeup of the U.S. population is changing. Census data show non-white minorities combined are expected to represent the majority of Americans by 2040, up from a third today.5 Likewise, millennials are projected to overtake Boomers as the largest generation segment in the U.S. this year. 6
“Our country is growing increasingly diverse and we, as an industry, should take measures to better reflect the communities we serve,” said Kate Healy, managing director of marketing at TD Ameritrade Institutional. “With these new scholarships, we want to reach more students from groups that have been historically underrepresented in the financial planning profession.”
Grants encourage universities to offer degrees in financial planning
TD Ameritrade Institutional will again provide two grants to universities and colleges – $50,000 for an established program and $25,000 for an emerging program – with the goal of increasing the number of graduates with bachelor’s degrees in financial planning emerging from U.S. schools. In addition to expanding their offerings, past winners have introduced innovative programs and approaches to help ensure their graduates are well prepared for the workplace.
Scholarship and university grant applications accepted April 13 through June 1
- Should be a current college freshman, sophomore or junior with a satisfactory academic standing
- Must be pursuing a Bachelor's degree in Financial Planning at an accredited 4-year college or university
- Members of under-represented demographic groups may choose to apply instead for one of the two NextGen Diversity Scholarships.
Grant applicants should be accredited colleges or universities in the United States that either:
- Offer a Bachelor's degree program in Financial Planning, or
- Plan to offer a Bachelor’s degree program in Financial Planning in the next academic year
To learn more about the program, and to submit an application, visit the TD Ameritrade Institutional NextGen Scholarship & Grant website at http://www.tdainstitutional.com/lp/nextgen-scholarship.page.
About TD Ameritrade Institutional
TD Ameritrade Institutional is a leading provider of comprehensive brokerage and custody services to more than 4,500 fee-based, independent registered investment advisors and their clients. Our advanced technology platform, coupled with personal support from our dedicated service teams, allows investment advisors to run their practices more efficiently and effectively while optimizing time with clients. TD Ameritrade Institutional is a division of TD Ameritrade, Inc., a brokerage subsidiary of TD Ameritrade Holding Corporation.
About TD Ameritrade Holding Corporation
Millions of investors and independent registered investment advisors turn to TD Ameritrade’s (NYSE: AMTD) technology, people and education resources to help make investing and trading easier. Online or over the phone. In a branch or with an independent RIA. First-timer or sophisticated trader. Our clients want to take control, and we help them decide how - bringing Wall Street to Main Street for 40 years. An official sponsor of the 2016 U.S. Olympic and Paralympic Teams, as well as an official sponsor of the National Football League for the 2015 and 2016 seasons, TD Ameritrade has time and again been recognized as a leader in investment services. Visit TD Ameritrade's newsroom or amtd.com for more information.
Brokerage services provided by TD Ameritrade, Inc., member FINRA/SIPC
1 Bureau of Labor Statistics, U.S. Department of Labor, Occupational
Outlook Handbook, 2014-15 Edition, on the Internet at http://www.bls.gov/ooh/business-and-financial/personal-financial-advisors.htm
2 TD Ameritrade Institutional is a division of TD Ameritrade, Inc., a brokerage subsidiary of TD Ameritrade Holding Corporation
3 Cerulli Associates’ Cerulli Report, Advisor Metrics 2014 (subscription)
4 Bureau of Labor Statistics, U.S. Department of Labor, Labor Force Statistics from the Current Population Survey, http://www.bls.gov/cps/cpsaat11.htm
5 U.S. Census Bureau, news release, 12/12/2013 - https://www.census.gov/newsroom/releases/archives/population/cb12-243.html
6 Pew Center for Research, FacTank, Jan 16, 2015, “This year, Millennials will overtake Baby Boomers,” http://www.pewresearch.org/fact-tank/2015/01/16/this-year-millennials-will-overtake-baby-boomers/
Source: TD Ameritrade Holding Corporation