RIA Firms That Hire NextGen Advisors Outperform Their Peers, TD Ameritrade Institutional Study Finds

TD Ameritrade Institutional Seeks Applicants for its 4th
Annual NextGen Financial Planning Scholarships and Grants, Applications
Accepted Now Through June 1, 2016

JERSEY CITY, N.J.–(BUSINESS WIRE)–$AMTD #RIANextGen–Registered investment advisor (RIA) firms frequently hear that hiring a
“next generation” advisor is the right thing to do as a graying industry
faces a talent shortage, but hiring a millennial can also help firms
boost growth and profitability, new TD Ameritrade Institutional1
research shows.2

Next to investing in technology and operational efficiencies, adding
young advisors may have the biggest impact on RIA firms, according to a
new study, The
Rise of the NextGen Adviser
.2 Firms employing a
nextgen advisor saw their assets increase by an average of 20 percent
annually between 2012 and 2014, compared with 11 percent among firms
that did not.2

“Hiring young advisors today and helping them grow as professionals can
help RIA firms in the years to come,” said Kate Healy, TD Ameritrade
Institutional’s managing director of marketing. “We believe that
developing young talent can help RIAs generate and sustain higher,
long-term growth as well as let them build greater enterprise value for
their firms.”

By now, most RIAs have been told that the profession has reached a
critical juncture. Just 21 percent of financial advisors are aged 40 and
under, whereas 45 percent are over the age of 50, which means retiring
baby boomers will be leave the industry at a much faster pace than they
can be replaced. TD Ameritrade Institutional has been leading the
charge, encouraging advisors to hire young talent to ensure their firms
can continue to serve investors even when the founders move on.

Yet the new study shows that advisors who bring on younger advisors also
can realize faster rates of growth. Firm partners and principals can
delegate more work to staffers, freeing their own time to cultivate new
business and serve top clients. The study found that two-thirds of
larger firms, those generating at least $5 million in annual revenue,
had at least one nextgen advisor. Firms that have at least one nextgen
advisor average about 20 percent higher income per owner than among
those firms that do not.

As RIAs evolve from small practices operated by owners to big
enterprises staffed by employees across a range of roles, there are more
job opportunities for graduates as para-planners, support advisors or
analysts.

“We as an industry should be doing everything we can, right now, to
develop new talent and ensure RIAs remain well positioned to serve
investors for decades to come,” said Healy. “But fostering the next
generation is more than just a demographic challenge for the industry:
it should be part of every RIA’s growth strategy.”

With that in mind, TD Ameritrade Institutional over the past several
years has developed a series of nextgen programs to attract more
undergraduates to the financial planning profession, help more students
land their first jobs, and encourage more U.S. schools to offer
financial planning degree programs.

NextGen Scholarships and Grants

Now in its fourth year, the TD
Ameritrade Institutional NextGen Financial Planning Scholarship & Grant
Program
offers 12 scholarships of $5,000 each to undergraduates
pursuing financial planning degrees. Two of the scholarships recognize
scholars from minority demographic groups – including women, blacks,
Hispanics and Asians – to ensure the nextgen program attracts a more
diverse pool of talent.

TD Ameritrade Institutional also provides two university grants –
$50,000 for an established program and $25,000 for an emerging program.
The goal is to increase the capacity of U.S. schools to produce
graduates with financial planning degrees and elevate the quality of
those programs, so more young advisors can meet the real-world needs of
RIA firms. TD Ameritrade Institutional has committed to investing more
than $2 million in grants and scholarships over 10 years.

Applications for scholarship and grants will be accepted April 11
through June 1. Scholarship applicants should be a freshman, sophomore
or junior at an accredited 4-year college or university with a
satisfactory academic standing and pursuing a Bachelor’s in Financial
Planning. Members of under-represented demographic groups may apply for
a Diversity Scholarship.

Grant applicants should be accredited colleges or universities that
currently offer a financial planning degree or plan to launch a degree
program in the next academic year.

To learn more about the program and to submit an online application,
visit the TD Ameritrade Institutional NextGen Scholarship & Grant home
page
.

Career Exchange and RIA Intern Network

TD Ameritrade Institutional’s NextGen Initiative continues to add new
programs and partners to help new advisors join the industry and then
grow. The RIA
NextGen Career Exchange
is free resource that connects advisors and
candidates for job and internship opportunities. Advisors can post job
openings and search a resume database for qualified candidates. Job
seekers can post resumes and search for job opportunities.

The RIA
Intern Network
helps advisors design and implement more effective
internship programs and seeks to foster the professional development of
young advisors and interns. More than 1000 advisors and 500 students and
young professionals have engaged in the RIA Intern Network since
launching in 2014.

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 (NASDAQ: 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 more than 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 2016
season, 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 TD Ameritrade Institutional is a division of TD Ameritrade,
Inc., a brokerage subsidiary of TD Ameritrade Holding Corporation
2
The Rise of the NextGen Adviser, InvestmentNews Research, December
2015
3 CFP Board of Standards Inc., August 2015

Source: TD Ameritrade Holding Corporation

Contacts

TD Ameritrade Holding Corporation
Joseph A. Giannone,
201-369-8705
Communications + Public Affairs
joseph.giannone@tdameritrade.com