Friday, November 17, 2006

Fun with numbers

Just back from the New England trust conference, where the keynote speaker made the following observations (numbers are approximate):

100,000,000—number of U.S. households
400,000—number of licensed U.S. financial advisors
250—households per advisor
$150,000—average investable assets of U.S. households (gross wealth divided by households)
$8,100—median investable assets of U.S. households (50% have more, 50% less).
20,000,000—more realistic prospecting base for financial advisors
50—number of actual prospects per advisor

So that's why selling financial services to the high net worth market has gotten so tough!
Posted by Jim Gust at 5:16 AM

2 comments:

JLM said...

Selling to the HNW market (investable assets of $1 million or more) is even tougher than that. As we reported earlier in the year, the number of HNW households in the U.S. is fewer than nine million.

If you're looking for HNW individuals, men or women with at least $1 million under their sole control, the universe of U.S. prospects shrinks to about 2.5 million.

So, depending on which way you look at it, the number of HNW prospects per adviser appears to be either six or 22!

12:21 PM
Jim Gust said...

Your link makes the point that most of the millionaires are boomers, and that was the point made by the conference speaker as well. Much has been made of the $11 trillion inheritance coming from the WWII generation, but the boomers already own $30 trillion, they are where the money is.

Plus, much of that $11 trillion is destined for philanthropy and nursing homes.

5:45 PM

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