If you are looking for that golden land of wealth management opportunity, eFinancialCareers has done a little homework for you. The group, a career network for financial professionals, uncovered four overlooked towns in the United States where the number of wealthy dwellers is high and the number of financial advisors is low.
Belle Meade, Tennessee, a suburb of Nashville, is home to many country music moguls and has among the highest median household incomes in the country ($226,250). But just 400 financial advisors serve the Nashville area, according to the group’s research. Naples and Marco Island, Florida have over 12,000 millionaires, but just 300 financial advisors. Neighboring Palm Beach, by comparison, is home to 2,010 financial advisors. In Alaska, there are over 16,000 millionaires, many of them with oil wealth, and just 140 financial advisors. And finally, New Orleans and surrounding cities of Metairie and Kenner, where wealth is beginning to rebuild following the devastation of Katrina, have a total of 340 financial advisors.
It helps to have local ties in these communities to get started, says Constance Melrose, managing director of eFinancialCareers for North America. But if you don’t, one way to build a business is to join the team of an older retiring financial advisor.
What other considerations should financial advisors make when deciding where to settle down and look for clients? “When you look at these cities, you not only want to look at balance of wealth and advisors, but also what is the driver of the local economy. Is that on the way up or not?” asks Melrose. “Are there in these regions smaller, local firms that have a great history?”
There are likely plenty of other towns in the U.S. where the ratio of potential clients to financial advisors is high, but this is a start. Do you have any to suggest?