TD Ameritrade Institutional Seeks Applicants for its 4th Annual NextGen Financial Planning Scholarships and Grants, Applications Accepted Now Through June 1, 2016

Registered investment advisor (RIA) firms frequently hear that hiring a “next generation” advisor is the right thing to do as a graying industry faces a talent shortage, but hiring a millennial can also help firms boost growth and profitability, new TD Ameritrade Institutional1 research shows.2

Next to investing in technology and operational efficiencies, adding young advisors may have the biggest impact on RIA firms, according to a new study, The Rise of the NextGen Adviser.2 Firms employing a nextgen advisor saw their assets increase by an average of 20 percent annually between 2012 and 2014, compared with 11 percent among firms that did not.2

“Hiring young advisors today and helping them grow as professionals can help RIA firms in the years to come,” said Kate Healy, TD Ameritrade Institutional’s managing director of marketing. “We believe that developing young talent can help RIAs generate and sustain higher, long-term growth as well as let them build greater enterprise value for their firms.”

By now, most RIAs have been told that the profession has reached a critical juncture. Just 21 percent of financial advisors are aged 40 and under, whereas 45 percent are over the age of 50, which means retiring baby boomers will be leave the industry at a much faster pace than they can be replaced. TD Ameritrade Institutional has been leading the charge, encouraging advisors to hire young talent to ensure their firms can continue to serve investors even when the founders move on.

Yet the new study shows that advisors who bring on younger advisors also can realize faster rates of growth. Firm partners and principals can delegate more work to staffers, freeing their own time to cultivate new business and serve top clients. The study found that two-thirds of larger firms, those generating at least $5 million in annual revenue, had at least one nextgen advisor. Firms that have at least one nextgen advisor average about 20 percent higher income per owner than among those firms that do not.

As RIAs evolve from small practices operated by owners to big enterprises staffed by employees across a range of roles, there are more job opportunities for graduates as para-planners, support advisors or analysts.

“We as an industry should be doing everything we can, right now, to develop new talent and ensure RIAs remain well positioned to serve investors for decades to come,” said Healy. “But fostering the next generation is more than just a demographic challenge for the industry: it should be part of every RIA’s growth strategy.”

With that in mind, TD Ameritrade Institutional over the past several years has developed a series of nextgen programs to attract more undergraduates to the financial planning profession, help more students land their first jobs, and encourage more U.S. schools to offer financial planning degree programs.

NextGen Scholarships and Grants

Now in its fourth year, the TD Ameritrade Institutional NextGen Financial Planning Scholarship & Grant Program offers 12 scholarships of $5,000 each to undergraduates pursuing financial planning degrees. Two of the scholarships recognize scholars from minority demographic groups – including women, blacks, Hispanics and Asians – to ensure the nextgen program attracts a more diverse pool of talent.

TD Ameritrade Institutional also provides two university grants – $50,000 for an established program and $25,000 for an emerging program. The goal is to increase the capacity of U.S. schools to produce graduates with financial planning degrees and elevate the quality of those programs, so more young advisors can meet the real-world needs of RIA firms. TD Ameritrade Institutional has committed to investing more than $2 million in grants and scholarships over 10 years.

Applications for scholarship and grants will be accepted April 11 through June 1. Scholarship applicants should be a freshman, sophomore or junior at an accredited 4-year college or university with a satisfactory academic standing and pursuing a Bachelor's in Financial Planning. Members of under-represented demographic groups may apply for a Diversity Scholarship.

Grant applicants should be accredited colleges or universities that currently offer a financial planning degree or plan to launch a degree program in the next academic year.

To learn more about the program and to submit an online application, visit the TD Ameritrade Institutional NextGen Scholarship & Grant home page.

Career Exchange and RIA Intern Network

TD Ameritrade Institutional’s NextGen Initiative continues to add new programs and partners to help new advisors join the industry and then grow. The RIA NextGen Career Exchange is free resource that connects advisors and candidates for job and internship opportunities. Advisors can post job openings and search a resume database for qualified candidates. Job seekers can post resumes and search for job opportunities.

The RIA Intern Network helps advisors design and implement more effective internship programs and seeks to foster the professional development of young advisors and interns. More than 1000 advisors and 500 students and young professionals have engaged in the RIA Intern Network since launching in 2014.

About TD Ameritrade InstitutionalTD Ameritrade Institutional is a leading provider of comprehensive brokerage and custody services to more than 4,500 fee-based, independent registered investment advisors and their clients. Our advanced technology platform, coupled with personal support from our dedicated service teams, allows investment advisors to run their practices more efficiently and effectively while optimizing time with clients. TD Ameritrade Institutional is a division of TD Ameritrade, Inc., a brokerage subsidiary of TD Ameritrade Holding Corporation.

About TD Ameritrade Holding CorporationMillions of investors and independent registered investment advisors turn to TD Ameritrade’s (NASDAQ: AMTD) technology, people and education resources to help make investing and trading easier. Online or over the phone. In a branch or with an independent RIA. First-timer or sophisticated trader. Our clients want to take control, and we help them decide how - bringing Wall Street to Main Street for more than 40 years. An official sponsor of the 2016 U.S. Olympic and Paralympic Teams, as well as an official sponsor of the National Football League for the 2016 season, TD Ameritrade has time and again been recognized as a leader in investment services. Visit TD Ameritrade's newsroom or amtd.com for more information.

Brokerage services provided by TD Ameritrade, Inc., member FINRA /SIPC

1 TD Ameritrade Institutional is a division of TD Ameritrade, Inc., a brokerage subsidiary of TD Ameritrade Holding Corporation2 The Rise of the NextGen Adviser, InvestmentNews Research, December 20153 CFP Board of Standards Inc., August 2015

Source: TD Ameritrade Holding Corporation

TD Ameritrade Holding CorporationJoseph A. Giannone, 201-369-8705Communications + Public Affairsjoseph.giannone@tdameritrade.com

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