In Step with a Winner: Jay Grubb

March 12th, 2015, Comments Off.

jaygrubbIn the almost seven years since Jay Grubb won Advisor Today’s Four Under Forty Award, he has grown both personally and professionally. When Advisor Today caught up with Grubb recently, he explained how his practice has grown over the years, and what he has done to stay ahead.

Advisor Today: When you won the Four Under Forty Award in 2008, you were president of Key Financial Partners, specializing in high-net-worth planning, business planning and retirement planning. Are you still focused on these areas?

Jay Grubb:  I am president of Key Financial Partners.  My areas of focus are still high-net-worth professionals, business owners and professional athletes. I do financial and retirement planning for them.

Advisor Today: What has changed in your practice since 2008?

Grubb: The practice has continued to evolve.  I have brought in retired athletes who now work as financial advisors. In fact, several of them will be coming on board soon.

Advisor Today: What has allowed you to continue forward on the path to success?

Grubb: My practice has grown a lot over the years. To separate myself from other advisors, I have teamed up with other professionals, such as CPAs as well as tax, legal and other professionals. Some of the financial folks I have partnered with do only investments for their clients; so, I go in and take care of the insurance for their clients. Using these centers of influence has helped me significantly as I continue to build my practice.

Advisor Today: What role has NAIFA played in your success?

Grubb: Through NAIFA, I have met other agents and advisors with whom I have built some valuable relationships. The Four Under Forty award has helped me build credibility in the industry–with other NAIFA members as well as with the public. It has been a great benefit to me.

Advisor Today: What important lessons have you learned over the years?

Grubb: The best lesson is that you have to adapt your business year by year and stay abreast of all the tax laws, marketing trends and technological developments because our industry is constantly changing. You have to keep up or you will be left behind.

Advisor Today: What is the number one piece of advice you have for newcomers to the industry?

Grubb: Remember that joint work is key in expanding your practice and moving ahead.


Declining Ranks of Financial Advisors Creates Opportunities for Those New to the Profession

February 12th, 2015, Comments Off.

There are 39,000 fewer financial advisors today than there were in 2008, according to research by Cerulli Associates. The primary cause? An aging advisor force has led to a wave of retirements. The Cerulli data indicate that more than half of current advisors are older than 55, and an additional 100,000 of them will retire in the next 10 years.

But these jobs are not falling into a black hole. The demand for advisory services remains strong. In fact, the federal Bureau of Labor Statistics estimates that that the number of jobs for financial advisors will increase by 27 percent over the 10-year period from 2012-2022, a growth rate “much faster than average” in the U.S. economy.

Advisor 2020 points to some of the factors driving the increased need for advisors.

  • Baby Boomers entering or approaching retirement will need strategies for “decumulating” their retirement assets while ensuring that their financial, health care and other needs are met for upwards of 20 or 30 years after they stop working.
  • The middle market, which makes up a large segment of U.S. households yet is significantly underserved in the area of financial services, presents a potentially lucrative market for advisors.
  • Generation X, people born from the early 1960s to about 1980, “should account for more than 40 percent of household income” by 2020. Many of them were severely affected by the 2007-2008 financial crisis and are in need of assistance as they work to get back on pace for their own approaching retirement years.

The convergence of these trends points to growing opportunities for young professionals and those making mid-career changes to fill the ranks left open by retiring advisors.

NAIFA is in tune with the needs of these early-career advisors. The NAIFA Young Advisors Team provides networking, mentoring, and coaching opportunities. Additional resources help those new to the industry manage their practices or devise business plans. Young advisors also benefit from NAIFA’s political advocacy, which protects their businesses and profession from overly burdensome laws and regulations and provides opportunities for them to increase their political awareness and involvement.