As organic growth remains a top priority for wealth management firms, advisors are seeking untapped markets where they can expand their client base and assets under management (AUM). Wealth Management prepared a slideshow based on findings from SmartAsset. The study offers valuable insight into where those opportunities may lie by ranking U.S. states based on potential AUM available per SEC-registered advisor.
To determine rankings, SmartAsset calculated the total household net worth (excluding home equity) in each state and divided it by the number of active investment advisors. The result identifies the most and least saturated markets for financial professionals looking to grow organically.
Top 10 States by Potential AUM Per Advisor
Kentucky
- Potential AUM per advisor: $85.39 million
- Active advisors: 768
West Virginia
- Potential AUM per advisor: $89.63 million
- Active advisors: 151
Virginia
- Potential AUM per advisor: $89.71 million
- Active advisors: 2,841
Idaho
- Potential AUM per advisor: $103.94 million
- Active advisors: 412
Montana
- Potential AUM per advisor: $104.66 million
- Active advisors: 544
Washington
- Potential AUM per advisor: $119.99 million
- Active advisors: 3,192
Mississippi
- Potential AUM per advisor: $136.86 million
- Active advisors: 175
New Mexico
- Potential AUM per advisor: $200.94 million
- Active advisors: 179
Maine
- Potential AUM per advisor: $341.18 million
- Active advisors: 238
Hawaii
- Potential AUM per advisor: $917.59 million
- Active advisors: 140
Wealth Management reports that the findings suggest that while many advisors compete in heavily saturated metropolitan markets, significant growth opportunities exist in smaller or underserved states.
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