Best places to start a financial planning career?

Veteran Financial Planner in Alhambra, California said: The Finra firm for you-eh---how about the one that doesn't change quotas in the middle of the year so they can confiscate your renewals? Or the one that requires you to sell such and such product or they "phase you out" and take your renewals. How about the one that requires you to buy their e&o which is super expensive because you only sell certain products but one size fits all and they take that out of your commissions and other things out of your commissions and if you say anything about it you're gone? Remember this: when you sign up with one of them THEY OWN YOUR RENEWALS. Oh---the paperwork might say otherwise, but THEY HAVE THE BD LICENSE. Get your own BD license. It isn't that expensive. You will get your full commssions that way---up front and forever. And you will be your own boss. They are not on your side. They want your cut. They want your profit.

Veteran FP, can you please be more specific... what do you mean about "take your renewals" who takes them and why? you mentioned in your post before that you identify people upfront who wants to buy your product. How do you do that? I am new to the FA world and need some advice.

Veteran Financial Planner in Glendale, California said: I have been in financial services for 30 years as of December 2010. It has been an interesting and rewarding and frustrating experience. I started with a Fortune 1000 company and have been on my own since 1984. Since then my renewals have been stolen no less than 3 times.

I have a degree from a name school in Biochemistry. I spent 5 years in research when younger but had sold books door to door in college and enjoy being out in the field. My approach to sales is this: I do not really "sell" people. I identify people who already want to buy. Then I present options to them--- "here's this idea and here are some advantages and disadvantages to doing it this way---and/or here's a second idea, again with advantages and disadtantages" Then I shut up and try to listen.

I am a CEBS desginee (Certified Employee Benefit Specialist-U. of Pennsylvania/IAEBP) and I have completed the CFP training certificate through the College of Financial Planning in Denver. I have not taken the board test and may or may not take it. I can still place the Certificate for the CFP training on my wall that I received from the College for Financial planning. Recently (in the past 5 years) I noticed the head of the CFP board was being paid (check this out) a salary of approximately $600,000--don't know what it is today. -When you have the CFP designation you must pay dues each year. Not so for several other designations. Also you must "rat out" anyone you know who has not done things the way the CFP board specifies.

Veteran FP, are you still answering to this post? I need some advice. How can I reach you???

I am the OF here. Email at: longhornsmiles@gmail.com if you dare!

Email at: longhornsmiles@gmail.com if you dare!

Kieth in Boston, Massachusetts said: I'm a CFP and been in the business 11 yrs. Go to a mutual fund company, get your licenses and CFP and other major certifications, and then go to a financial planning boutique or go to a bank and build a book of business. Be independent, provides more professional environment and allows you to build an excellent reputation and client base.

Stay clear of Waddell & Reed, not a top notch firm. I'd also stay clear of insurance companies, you'll be pushing life insurance to everyone regardless of suitability.

Kieth....Which financial planning boutique or bank do you recommend where you can work independent and keep the book of business after getting licensed? If I get my licenses at EJ or ML will they let me go after a certain time and what is the time period?

Check out Garrett Planning Network. They're a fee-only planning firm. must get your CFP within a couple years of joining the firm. They specialize in fee-only hourly or retainer based planning however you can also have AUM assets under management clients. They are a nationwide firm that operates like a franchise. You own your local firm & keep 100% of the revenues. They offer two different firm models. The first is Garrett Planning Network where you pay a one-time fee and basically get hands on training and consulting from Garrett for all you will need to start and run your firm as far as marketing, compliance, technology, processes, business planning, web site, etc. You also get listed on Garrett's web site search for the public. Garrett gets a ton of national media coverage because the media loves their fee-pnly hourly/retainer business model w/no conflcts of interest, no commissions. If you join the network, you basically start your own business but have a ton of support from Garrett. The only model that they offer which is even more appealing to me is the Garrett RIA firm. For $5,500 per year flat fee, you get everything that I mentioned previously and a lot more. If you join, the RIA, you are truly a franchise. You still make all the day-to-day decisions, & run your business, you can name your business, you own the clients, however you're joining a national SEC registered RIA firm. The beauty of this is it only costs $5,500 per year & Garrett keeps none of your revenues or AUM. In addition to all of the busines support that I highlighted, you will also get a turn-key financial planning firm. They will do your registrations, provide you will the financial planning software, the CRM system, the compliance system, the document management system, the E&O insurance, complete access to custodians like Scott Trade, Folio Instutional , TD instutional, and Dimensional Advisor Funds. Garrett also takes care of all of your back of the house like billing & investment

Hello, I recently met with the CFP, and Owner of a small boutique in my area. I currently work in wireless sales and am also a full-time student. I approached him a few weeks ago about setting up a meeting about a possible internship of some kind. To my surprise when I met with him he thinks that I could in time make a great CFP and he wants me to start working with him. He says he would mentor me through the process, while I study to get my series 7 and probably 66. I am still in school for another two years before I will graduate with my B.S. in Business Admin. I just recently graduated with my A.S. The position would be a commission only position, and he said that me going to school is not a problem at all. When we met a couple days ago he said to go out and do some research since I do not have much knowledge of the industry yet, so that is exactly what I am doing. My questions are, should I do this? I am thinking that this may be a great opportunity to learn, and maybe get a jump start in the business before I graduate. Also, what should be some of the major questions that I need to go back to him and ask before I decide to do it?

Ignorance is bliss. There's nothing in it for him to lose and everything to gain.

It costs money and time (YOUR'S!) to get the Series 7 and 66, to learn the biz and so forth.

Yeah--you bring in some accounts, leave,and he gets to keep the business and residuals or ongoing feew.

Why WOULDN'T HE "HIRE YOU"?

adamstipo in Houston, Missouri said: Hello, I recently met with the CFP, and Owner of a small boutique in my area. I currently work in wireless sales and am also a full-time student.

OI approached him a few weeks ago about setting up a meeting about a possible internship of some kind. To my surprise when I met with him he thinks that I could in time make a great CFP and he wants me to start working with him. He says he would mentor me through the process, while I study to get my series 7 and probably 66. I am still in school for another two years before I will graduate with my B.S. in Business Admin. I just recently graduated with my A.S. The position would be a commission only position, and he said that me going to school is not a problem at all. When we met a couple days ago he said to go out and do some research since I do not have much knowledge of the industry yet, so that is exactly what I am doing. My questions are, should I do this? I am thinking that this may be a great opportunity to learn, and maybe get a jump start in the business before I graduate. Also, what should be some of the major questions that I need to go back to him and ask before I decide to do it?

But of COURSE he'll "hire you". It takes money and TIME (your's!) to get a Series 7 and 66. That's the easy part. The hard part is getting the clients. It is a sales job. If you stay (and only 2% are there after 5 years) fine. If not, what does he have to lose? He gains your renewals and your labor.
The customer ongoing fees are HIS.

He is actually paying for the 7 and 66, I cannot afford them.

I have worked as an advisor for 6 years and then got out of the business after 9/11. I went into law enforcement and back to college to finish my degree in finance. Reciently, i was offered a position with a local mom/pop firm at 30%, because I lapsed my license. I am 2 years out from my degree and am wondering if its a good idea to get back into the industry now, at age 45 no-degree, and finish my b/a while building my client base? I live in a county of about 150k people, and have a average network of possible clients, in addition, im in politices, running for a visible office. Any advice as to wait and finish degree, or get back into the business and finish degree part time??? Thanks..

tim h. said: I have worked as an advisor for 6 years and then got out of the business after 9/11. I went into law enforcement and back to college to finish my degree in finance. Reciently, i was offered a position with a local mom/pop firm at 30%, because I lapsed my license. I am 2 years out from my degree and am wondering if its a good idea to get back into the industry now, at age 45 no-degree, and finish my b/a while building my client base? I live in a county of about 150k people, and have a average network of possible clients, in addition, im in politices, running for a visible office. Any advice as to wait and finish degree, or get back int

o the business and finish degree part time??? Thanks..

Run for office. Get a salary anywhere in government and retire at age 55.

If you are in financial services be committed to it. Personally I don't think there is a future in financial planning. Financial Planning is an investion of the CFP BOARD which was invented to essentially get membership fro all CFP members worldwide. Look on the internet....almst every country has specifications set by the CFP board for members. The entire purpose is to legitamize financial planning as a profession.

People do not plan. Your average person slogs through life. A financial plan is a commodity. Anybody can get one now for free or for $250. Why do they need you when they can go to an accountant who is a CFP?

Be a politician. That is a better way to a secure life. After that, write a book.

I currently have no background in finance. I have a BS in Criminal Justice. Been working a steady government job full time job for 3 years now. I am interested in pursuing a career in financial planning - fee based only. No commission/etc. Not sure where the best place to start is. If I did get into the field, I would like to own my own CPA/FP business. What would be your recommendations for making this jump - education wise and employment wise? I have done a lot of research but wanted to get a feeler for what everyone else thought.

On this board I've read a lot of discussion on these smaller boutique fee-based firms that usually give you a salary as well as a book of business to start with, but as people mentioned, have less income growth potential in the long term. Would someone be so kind as to give a number examples of firms like this, or where I would find a list specific smaller boutique firms? like if i wanted to google search these small fee-based firms.. how would I go about it?

I'm in a fairly good market in Los Angeles, I am just having trouble finding the smaller firms since the bigger firms are all over the place. I'm looking for a smaller shop to start with, to work alongside a seasoned financial advisor and begin to build up my own book of business. And I do prefer starting with the salary and book of business first.. if there is a limit to growth later on, I can always move shops. I have a good couple of years in financial services working as a client associate in wealth management, both on buy/sell-side, with both private high net worth clients and institutional clients on the brokerage end. I took a break after the financial crisis wreaked a bit of havoc and curious to get into it again. Thanks for the help!

I'd start by looking in publications for largest RIA's and financial planners in your local area. Barron's publishes a state by state list but there are lots of such lists out there. I think it is deceptive when people say small boutique firms, the really small ones are hard to find because they have 3 employees, you want a large independent or RIA, there are a ton of them in the LA area. Good luck with anyone "giving you a book of business", that is generally a pipe dream or something they might offer when recruiting someone they really want. More likely you work on a team until they can transition some people to you. Why hand over clients they earned to a new employee?

Thank you for the input! Yes I agree that giving a book of business is certainly a pipe dream and in fact I probably should've been more clear that what I really want to focus on is working on a team, like you said. Honestly, they don't have to transition ANY people to me until they're comfortable.. and well, until I am too!

As for the Barron's list, is this what you are referring to?

online.barrons.com/report/top-financial-advisors/1000/california - seems to show the top in California, but I wouldn't say any of these are "independent" firms.

This is probably what you mean, right?

online.barrons.com/report/top-financial-advisors/independent

Anyhow, this is a FANTASTIC starting point, I really appreciate you referring this list. If there's another, better list you know of, feel free to refer it as well. Thank you!

fcprop in San Diego, California said: Hello, did you take the job with First Command? Thanks

I'm also wanting to know if you took the job with First Command. I plan on interviewing with them tomorrow. I've also been offered a job with Waddell and Reed and EJ but I am retired military. Any words of wisdom?

nxg in Douglasville, Georgia said: Thanks Eric for your reply! Yes, I am definitely interested in First Command for the same reasons you mentioned. I like the fact that they have a broad range of services. I have interviewed with the regional manager here and it went well. The opportunity with them sounds good, I am just wondering is there anything I have not considered as well as how difficult the first few years are. I have a child and I am the bread winner in my family. I dont have a hard market as I only moved here a few years ago. Do they provide any leads? How long have you been working there?

Did you every take the job with First Command and if so what was your experience?

I have 5 years of experience in the industry. It's mostly in operations, as my current employer's promise of becoming a junior FA hasn't panned out (and apparently isn't going to). I have my 7,66,9/10, L&H and I'm currently taking courses for the CFP. I'm not interested in commissions, as I prefer a stable salary and/or fee-basis business. I do not have book and have never had an quality training.
How to I break into financial planning? I find myself veering away from being strictly an advisor, as I thoroughly enjoy planning. This thread has given me some great leads as to where to start looking, but I want a place that will TRAIN me or at least provide mentoring while I build my business.
Any advice?

It's not hard to find training in financial planning. The hard part they don't and can't seem to teach. The hard part is being a good prospector. Financial planning is less about financial planning than about being a good prospector.....31 years after I started they are still not telling that to Newbies.....this is a sales business. The real name for the business should be:

How to cold call on the telephone or how to target market for customers who are not confident in their own abilities to do their own financial planning....oh..yeah....also....how to do this without any advertising budget!

MRG in Kensington, Maryland said: What are the best companies for launching a financial planning career? It sounds like a "fee-based" or "fee only" way of planning would most appeal to me... rather than an insurance sales type environment.

I am looking for a great training program where I can be part of a team working on client cases, and eventually taking on cases of my own, always with the client in mind.

I initially thought Ameriprise would be good, but after some more reading about them, it sounds like a sales factory that does not set up people for long term success and fulfillment.

Thank you!

Hi, I am currently with Investors Group, and my office in Vaughan is currently looking for financial advisors to join us. The reason I'm replying is because I wanted to let you know a bit about our company. Investors Group has a culture of helping clients with financial planning and wealth management, and I can say our financial advisors truly care about their clients, and it makes the job very rewarding. The company focuses on the financial planning aspect of the business and selling second. In addition, we also offer one of industry's leading training programs, you will not only receive the technical skills required to succeed, but more importantly, you will receive mentorship and coaching from the senior advisors. I would gladly offer you additional information about our company, our training, and the role itself if you are interested. No matter where you chose to go, it's good to obtain as much information as you can.

Cheers!

-Stacey

Stacey in Toronto, Ontario said: Hi, I am currently with Investors Group, and my office in Vaughan is currently looking for financial advisors to join us. The reason I'm replying is because I wanted to let you know a bit about our company. Investors Group has a culture of helping clients with financial planning and wealth management, and I can say our financial advisors truly care about their clients, and it makes the job very rewarding. The company focuses on the financial planning aspect of the business and selling second. In addition, we also offer one of industry's leading training programs, you will not only receive the technical skills required to succeed, but more importantly, you will receive mentorship and coaching from the senior advisors. I would gladly offer you additional information about our company, our training, and the role itself if you are interested. No matter where you chose to go, it's good to obtain as much information as you can.

Cheers!

-Stacey

Hi stacey,

I am really interested in working for Investors Group. Do you know if I need to have any Certificate like the CSC or CFA in order to get my feet in the door? If not, what kind of experience or course do you think that would be the fastest way to get a job with Investors Group?
thanks

Check out a relatively new RIA firm, Vertitat Advisors. They are a fee-only Financial planning and investment management firm targeting middle America. They are hiring Investment advisor representatives(IAR's) in virtually every state. Vertitat as an amazing turn-key technology system that frees up its advisors to spend time finding and working with clients and building their books of business, and not doing back office and other non-customer facing work. As a Veritat IAR, you retain 80% of all revenues generated from clients you bring in and 50% on clients Veritat refers to you through their web site. They provide great training and everything you need to start and run our business for no charge. This includes but is not limited your client facing Advisor website, client portal, financial planning software, CRM software, all the compliance support, back office support, billing, and virtually anything else's that you would need to run your business.
There are a few big things that makes Veritat unique. First, there technology, systems, and staff planner and investment committee will enable you to spend 80% of your time meeting with clients or prospecting for new clients. A Veritat advisor can service 500 to 750 clients annually using their systems and technology coupled with staff planning and investment management support. This is not possible with most RIA firms where advisors have responsibility for virtually everything regarding their clients,
At Veritat, they free the advisors up to work with clients and you have a full support team to handle everything else. Veritat also has a very unique service offering for clients that provides quality comprehensive financial planning, ongoing support, investment management for just $25 to $45 month for financial planning and ongoing support and 0.7% fee for AUM with no AUM client minimums. You as the advisor would retain up to 80% of these revenues. With 500 clients by year 5 and

Over a few years if you can obtain 350 clients with an average of $100k AUM per client, that would pay the advisor $300,000 per year. This is very doable. No one is going after clients with AUM under $500k and no one is offering comprehensive financial planning for $40 a month . Veritat's systems would allow you to service 300 clients annually and the price point will enable you to bring in the new clients rapidly, Let's say you are able to add 70 new clients per year for 5 years and the average AUM per client is $100k which is also very doable, you would be making $300k by year 5. Worse case you bring in only 175 clients and there assets average $75k per client, you are still making close to $200k per year with almost zero overhead.

I disagree about working for Fidelity and Schwab. I started out as a Financial Representative at Fidelity, and after much research, it was the highest paying entry level job out there. I had no experience in Business at all except in import export. I owned a gallery and have 10 yrs sales experience and that is what they are looking for--a book and personality. As in long term careers at Fidelity, it was great on commissions and leads, many come from the call center once you develop a repor with one of the people there. Edward Jones, and many others want you to commit to at least a year or you have to pay them back for the training. Now, if you haven't passed your series 7 or 66, you will not get much training with Fidelity and you will with Jones and you WILL be fired if you don't pass the exams working for any company dealing with large volumes of securitized products. If you want a career in just insurance, you still have to take the 6, 63, state insurance and health but in my opinion, the more products you can offer, the better off you are.
so the main question you need to face is how much training do you really need and who is willing to pay you for it if you are just starting out. If you have many years experience and don't need training, then go for an independent where you can have a buy sell agreement.
Oh, and for those who don't know, you need to be working for one of these firms before being able to take the series 7 and the 66. They need to sponsor you. You can't take it on your own and most insurance only companies will want you to take the 6 and the 63 to difer you from jumping ship into securities because the 7 and the 66 is HARDER and you will not want to do 4 tests overall. Believe me, the 7 and the 66 are hard so take these and you can pretty much go anywhere.

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