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AMTD: 47.45 +0.23 +0.48% Volume: 106,125 Oct 18, 17 10:25

Press Release Details

Mind the Gap! TD Ameritrade Institutional Expands NextGen Advisor Education Effort with a Second University Grant Program

May 14, 2014

Award for Emerging Financial-Planning Degree Programs Builds on Innovative Scholarship and Grant Initiative, Helps Expand Capacity to Develop New Fiduciary Advisors

JERSEY CITY, N.J.--(BUSINESS WIRE)-- When it comes to helping cultivate a new generation of independent investment advisors, TD Ameritrade Institutional1 is raising the bar by introducing a new grant for colleges and universities committed to educating future financial-planning professionals.

Through its Next Generation Financial Planning Scholarship and Grant Program, TD Ameritrade Institutional will give $25,000 to a college or university with a nascent financial-planning degree program. Last year, when the program was introduced, TD Ameritrade Institutional announced 10 scholarships of $5,000 each for students pursuing a bachelor’s degree in financial planning and a $50,000 grant for an established degree program.

The scholarships and grants are intended to help increase the number of college students graduating with a financial planning degree and who will pursue a career as a personal financial advisor. Over the next decade, TD Ameritrade Institutional is committed to investing more than $1.25 million to encourage more students to pursue financial planning careers and help fill the ranks of registered independent advisors (RIAs), an industry expected to face a shortage of talent with a wave of baby boomers set to retire.

Schools seeking a grant must be accredited, non-profit U.S. colleges or universities offering an undergraduate degree in financial planning. The application deadline for both grants is June 2, 2014 and the winners will be named on September 8, 2014. Students’ applications for the scholarships also are due by June 2; winners will be selected August 4, 2014.

For more information, applicants can visit the TD Ameritrade Institutional NextGen Scholarship & Grant website, http://www.tdainstitutional.com/lp/nextgen-scholarship.page.

“Last year, we encountered schools with financial planning degree programs that were promising and innovative, but still in their infancy. So, in addition to recognizing schools with exceptional programs, we want to support institutions that are just starting out,” said Tom Nally , president, TD Ameritrade Institutional. “This scholarship and grant program can help increase colleges’ capacity to develop a new generation of advisors and sustain the industry’s growth into the future.”

Industry research shows that the RIA industry could face a significant talent gap in coming years. About a third of Baby Boom -era advisors are expected to depart over the next decade, mostly as they reach retirement age, and there aren’t enough young advisors to take their place.2 Nearly half of RIAs are 55 and older, while less than 8 percent are under 35 years of age.2

Across all the various financial intermediary channels -- brokerages, banks, insurers and independent RIAs -- the total number of advisors is expected to shrink by 26,000 by 2017.2

Meanwhile, demand for personal advice is expected to climb as millions of Americans move into retirement and seek out professional expertise. The U.S. Labor Department’s Bureau of Labor Statistics projects 27 percent job growth for personal financial advisors through 2022, nearly three times the rate of all other professions, making it one of the fastest-growing career fields. 3

Recruiting the next generation isn’t just good defense for RIA firms, but may be a path to future growth. Hiring young advisors may be critical for RIAs that intend to retain the children of older clients and to attract a new generation of investors as clients. Millions of Americans 49 years and younger, also known as Gen X and Gen Y, are expected to amass $28 trillion in assets by 2020, up from $2 trillion, through inheritance and their own wealth-creation.4

The challenge for the RIA industry is encouraging colleges to promote financial planning as a worthy academic pursuit. Most individual advisor firms are too small to fund comprehensive professional-training programs, such as those found at the biggest brokerages and banks, and so may be overlooked by graduates making career choices.

“It’s critical that the industry take action now and avert an advisor shortage down the road,” said Nally. “RIAs must recognize that we are in a war for talent, and our best weapon is to show the next generation they can have rewarding careers as financial planners.”

About TD Ameritrade Institutional
TD Ameritrade Institutional1 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.

About TD Ameritrade Holding Corporation
Millions of investors and registered investment advisors have turned to TD Ameritrade’s (NYSE: AMTD) technology, people and education to help make investing and trading easier. Our clients want to take control and we help them decide how, whether online, over the phone, in a branch or with an independent investment advisor. We’ve been bringing Wall Street to Main Street for more than 36 years. An official sponsor of the 2014 and 2016 U.S. Olympic and Paralympic Teams, TD Ameritrade has time and again been recognized as a leader in investment services. Visit TD Ameritrade’s newsroom or www.amtd.com for more information.

Brokerage services provided by TD Ameritrade, Inc., member FINA / SIPC / NFA

Third parties mentioned above are separate from and not affiliated with TD Ameritrade.

1 TD Ameritrade Institutional is a division of TD Ameritrade, Inc., a brokerage subsidiary of TD Ameritrade Holding Corporation.

2 Cerulli Associates, the Cerulli Report, Advisor Metrics 2013: Understanding and Addressing a More Sophisticated Population

3 Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2014-15 Edition, Personal Financial Advisors, http://www.bls.gov/ooh/business-and-financial/personal-financial-advisors.htm

4 Advent Software, Three Ways to Reach the Next Generation of Investors, November 2013

Source: TD Ameritrade Holding Corporation

TD Ameritrade

Joseph A. Giannone, 201-369-8705

Communications Public Affairs

joseph.giannone@tdameritrade.com

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