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Client Withdrawals Can Outpace Organic Growth if RIAs Aren’t Careful Enough
['Griffin Kelly', 'Thu', 'August', 'At Am Gmt', 'Min Read']
Yahoo Finance
RIAs lose 2% to 5% of assets under management each year through standard retirement withdrawals and one-time client distributions, according to a recent Cerulli report.
That may not sound alarming until it's compared with the industry's average annual organic growth of just 3% to 4% from 2019 through 2024.
In many cases, routine client retirement spending can wipe out much of a firm's hard-earned growth.
Just over half of RIAs proactively ask clients for them.
"The podcast content, which we record every other week, gets repurposed onto our socials and emails," he said.