See Table of Contents for Tiburon's Financial Advisor Target Markets Research Report

Tiburon Strategic Advisors, a market research & strategy consulting firm serving a wide variety of financial institutions and investment managers, is pleased to announce the release of its new research report on Financial Advisor Target Markets. This research release summarizes some of the report's key findings.

The purpose of this report is to provide readers with an initial understanding of the wide range of potential financial advisor target markets, including those based on age, investable assets, other financial factors, occupation, source of wealth, & other factors. This is the first draft of Tiburon’s research on this topic.

This is Tiburon’s first draft of this report; this draft consolidates prior Tiburon research into one report

Key Findings
This report has a long list of interesting facts to share:

Evolution of Financial Advisor Target Markets
This chapter outlines the evolution & market history of financial advisor target markets strategies:

Market History

  • There are 15,000 national trade & professional associations
  • There are 100,000 state, regional, and local trade & professional associations
  • Fee-based financial advisors contact their high-end clients almost eight times every year; newsletters and seminar invitations are the most popular forms of contact

Market Segmentation
This chapter outlines market segmentation in financial advisors target markets strategies:


  • The number of consumers between 55 and 64 years old is expected to grow the fastest at about 4% per year
  • Baby boomers account for over 50% of full-service brokers’ clients, but it varies on an individual financial advisor level
  • The consumer population over age 65 is projected to rise another 6% to nearly 20% by 2030
  • The consumer population is expected to continue to age rapidly, with greater than half of consumers being over 45 years old by 2012
  • The average expected retirement age has been getting older, now at 65 up from 62 in 1996
  • Almost three-quarters of workers have been retiring before age 65

Investable Assets

  • Consumers households have $23 trillion in investable assets, an increase of over 40% since 2002, but a decrease of almost 20% since 2007
  • About one-fifth of consumers’ investable assets are now in cash instruments
  • Consumer household have $7.7 trillion in bank accounts, an increase of almost 100% since 1999
  • Consumer households have $1.6 trillion money market assets, an increase of over 40% since 2002
  • Consumers households assets held in brokerage accounts is $14.0 trillion, a decrease of almost 30% since its peak in 2007
  • Consumer households have $1.2 trillion in life insurance reserves, an increase of 33% since 2002
  • Consumer households have $3.8 trillion in traditional IRA accounts, an increase of 65% since 2002

Other Financial Factors

  • The top 1% of households in terms of net worth control nearly one-half of the total net worth
  • The average consumer household net worth has climbed to $400,000, almost twice what it was in 1980


  • Fee-based financial advisor clients are almost equally split between small & medium size business owners, corporate executives, & professional occupations
  • Nearly two-thirds of corporate executives name financial planners as important sources of financial advice
  • Small business owners are most likely to use a broker or independent advisor as their primary financial advisor

Sources of Wealth

  • Almost all new assets for full-service brokers are new money, with the largest share being retirement plan rollovers
  • Retirement plan rollovers and other sources of new money account for about two-thirds of all fee-only financial advisors’ assets
  • Nearly 13% of consumer households own a Roth IRA.
  • There is nearly $4 trillion of retirement assets invested in IRAs
  • Nearly three-quarters of recent retirees have either reinvested their 401k into an IRA or are exploring options to move their funds to a new provider
  • The consumer population over age 65 has risen dramatically and is projected to continue to rise, up nearly 7% since 1940 and projected to rise another 6% to nearly 20% by 2030
  • The IRA rollover market will increase from $278 to $538 billion assets under management by 2012
  • It is the baby boomers who have the largest 401k balances, with those over 60 years old average $115,000
  • Less than 10% of rollover IRAs are kept with the original plan’s provider
  • Almost half of consumers with IRA accounts have some funds rolled over from 401K plans
  • Two-thirds of consumers who rolled over assets into an IRA had help from an investment professional
  • One-fifth of financial advisors’ assets have come from retirement plan rollovers

Other Factors

  • Consumer households have one or two income providers within their households almost three-quarters of the time
  • The gay & lesbian community consists of between 15 and 25 million people, or 6% of the US population
  • One-third of individuals age 65 or older live alone
  • Almost two-thirds of affluent Americans have a college degree
  • Women carry almost 80 million credit cards, over 10% more than men
  • Women now own nearly seven million businesses, a number that has increased drastically in recent years
  • There are 1.4 million women investor households with over $500,000 in total assets
  • The Hispanic segment is poised to control over $1 trillion in household disposable income by 2010
  • Less than two-thirds of affluent Asian Americans use financial advisors, which presents a significant opportunity for advice
  • There is a large income gap amongst ethnic groups, specifically non-Hispanic whites earn over 100% more than Hispanics
  • The disabled community consists of over 50 million people, or 19% of the US population

Future Predictions for Financial Advisor Target Markets Strategies
This chapter outlines the future predictions for target markets strategies:

  • Client retention & consolidation will be critical
  • Client referrals will remain the best marketing method
  • Increased competition will create the need for more proactive marketing approaches for new clients
  • Firms utilizing target marketing will be most successful
  • Numerous occupational, ethnic, & other segments will also provide terrific opportunities

To better understand the developments for Financial Advisor Target Markets, executives can purchase Tiburon's Financial Advisor Target Markets: Focusing One's Strategy research report where the key findings highlighted above are covered in greater detail. Please contact Sarah Sage at SSage@TiburonAdvisors.Com or 415-789-2540.