We reviewed 5 years of regional 40 under 40. Here's what we learned

What's better than a deep-dive review of 40 under 40 data? Two deep dives, of course! If you missed it, Financial Planning recently took a look back at the last five years of its 40 under 40 data to see what interesting trends jumped out.

The list, a ranking of top-producing brokers under 40 years of age, highlights up-and-coming talent at wirehouses like Merrill and J.P. Morgan. Accompanying FP's overall 40 under 40 list is a separate ranking of regional brokers, also by personal production.

READ MORE: We reviewed 5 years of 40 under 40. Here's what we learned

To learn more about how the landscape has changed for brokers across the country, Financial Planning analyzed the past five years of data from its regional 40 under 40 lists. Here is what we found.

A common industry assumption holds that the most successful advisors live in high-income areas, where high-net-worth clients are supposedly more common. But findings from FP's analysis of regional 40 under 40 data indicate that many successful advisors live in lower-income areas.

Across the 108 unique brokers in FP's regional lists over the past five years, a majority are located in areas with median household income above the national average. But some 40% of advisors on the list actually live in areas with income levels below the rest of the country.

To get a better picture of the role local income levels have on broker success (as measured by AUM), Financial Planning looked at 10 advisors on the list — five living in the lowest income areas, and five living in the highest income areas.

READ MORE: Wealth management's evolving take on 'location, location, location'

Across the five advisors living in lower-income locations, the average median household income of the areas was $46,454. For the high-income-location group, the average median income of the areas was $178,389. Median income for the high-income-location group is nearly three times higher than the other group. So, what does that mean for advisor success?

The five financial advisors living in the higher-income areas had an average AUM of $339 million, about 13% higher than the lower-income area group of advisors. Production levels were roughly the same, with the higher-income area group reporting 14% higher production on average.

That's not an insignificant difference, but analysis shows that, across five years of our full regional lists, local income levels have virtually no correlation with an advisor's AUM or production figures.

Financial Planning's regional 40 under 40 lists capture only a small segment of the overall financial advising industry, but the past five years of data may reflect a broader trend when it comes to talent.

READ MORE: The 'fundamental' talent shortage looming over wealth management

Ameriprise, once a dominant force on the regional 40 under 40 rankings, appears to be struggling to maintain star advisors. Broadly speaking, as its teams leave, Ameriprise's lawsuits against rivals like LPL Financial paint a picture of a firm having trouble with talent retention.

That said, the Minneapolis-based firm reported a net gain in advisors during its most recent earnings report, up 1% year-over-year to 10,427.

With forecasted advisor shortages on the horizon, firms may have to go to greater lengths to recruit and retain talent, especially young industry leaders like those found on the 40 under 40 rankings. Exactly what tools firms may pull out to accomplish that remains an open question, but litigation could be one of them.