Analyst: Brace yourself for a BIG, post-DOL rule revenue dip
October 13, 2016 by Warren S. Hersch
A new report from the global management consulting firm A.T. Kearney makes a jaw-dropping forecast: a precipitous, $20 billion dip in industry revenue resulting from the pending phase-in of the Department of Labor’s fiduciary rule.
The study, “Why investing will never be the same,” contains other provocative data points. Among them:
advisor-switching is accelerating, rising to 13 percent in 2015 from 4 percent after the 2007-2009 recession;
about 9 in 10 investors below age 45 say they would “change their advisory models” to pay less for advice. Among all age groups, nearly 3 in 4 (72 percent) would do so; and
30 percent of older, “fully delegated” advised investors might opt for “lightly managed,” less costly advice.
The bottom line for retirement advisors: big changes are afoot.
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