Marge -
I would say the best thing more mature career changers have going for them is life experience and connections.
This is still an industry where making connections to build a book of business is important. Regardless of what we wish, people don't just get up in the AM and say: I am going to find a financial planner today. Well maybe some do, but most do not. They have to be reminded and tend to go on the internet to find answers (and those are ALWAYS RIGHT - NOT!)
I was with many young people in my classes who have left the business in droves. They liked the idea of a six figure salary, but when they found out they would not have a paycheck for about 3 years, that didn't sit really well. They also did not have funds to put into building a business and SBA loans don't come really easily in our world.
I was lucky, we had savings to rely upon and my husband could keep the home fires burning while I built a business, and with grown children, I could work the 12-18 hour days needed at the starting few years. Just now, after three and a half years, I can start to take an income, but I have been a drag on our net worth growth for about 4 years now.
This career is much harder than taking a CFP course and passing that exam. There is licensing, CE, business building, regulations, computer programs to buy, E & O insurance, liability insurance, etc. Then when your business gets to a decent size and you can no longer to it all you need staff and with them come taxes, more insurance, etc. And now with fee compression, you need double the amount of clients and with them more work, to make what advisors made just 5 years ago.
Good luck to all!
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Nadine Burns
Investment Advisor/Owner
Gateway Financial Partners
South Lyon MI
800-652-4360 (810)
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Original Message:
Sent: 01-19-2017 01:05
From: Margery Neis
Subject: Too Old for CFP?
Chuck, like you, I am a career changer as well. The last couple of years, I’ve been on sabbatical to study and prep for the CFP exam and have been for the last several months networking and talking to practicing financial advisors about how to get started as a career-changer.
I think the first step in making a career change is to envision where you want to end up and mapping out the path from where you are to where you’d like to be – there are a number of pathways through which professionals enter financial planning; these types of careers seem to make for an easier transition:
- Financial products sales
- Investments
- Tax (e.g., CPA firms)
- Insurance
- Estate planning
And there are a number of professional destinations / landing pads:
- Broker-dealers / Wire-houses (e.g., UBS Warburg, Morgan Stanley)
- Retail sales (e.g., Fidelity)
- RIA firms
- CPA firms
- Independent Advisors (e.g., Edward Jones, Raymond James)
- Banks
See the chart in this article from Morningstar: http://byallaccounts.morningstar.com/blog/479-5-paths-in-the-advisor-world.html
With your background in investments, this could be a relatively easy transition for you. As I’ve been exploring pathways into the profession, however, there seems to be a major trend in the industry toward bringing younger professionals into the fold, and fewer resources for mid-career career changers. I understand the reason for this trend toward hiring recent graduates is the aging of practicing financial professionals and a growing shortage of financial advisors as the giant wave of baby boomers grow older. Another trend I've seen is RIA firms merging with independent advisors who can contribute a book of business to a RIA firm. The industry is wise to encourage young people to enter the profession, but I’d like to take a moment to sing the praises of mid-career career changers:
- We are empathetic and not quick to judge others for their financial idiosyncrasies.
- We are rich in life experience and have been through many of life’s major financial decisions.
- We often have additional skills that businesses can take advantage of in managing a practice.
- We are quick learners and often have developed good “soft” skills like decision-making, prioritizing, problem-solving, being able to take a flexible approach to moving forward when processes/plans break down, among others.
Hope this summary sheds some light on your feasibility question. As someone who is currently making the transition, I feel emphatically like I’ve found my “tribe” and am looking forward to being in the profession for the next 20+ years.
Best wishes to you in your next act,
Marge Neis, CPA (Inactive), MBA, Candidate for CFP® Certification
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Margery Neis
San Francisco CA
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Original Message:
Sent: 01-10-2017 14:57
From: Charles James
Subject: Too Old for CFP?
Hi, I'm a first-time poster, and I'm considering pursuing a CFP to assist in a potential 'second-act' career transition to financial planning. I'm 55 years old and have a CFA designation as well as an MBA from a Top 10 school. I've spent the past 25 years in investment management in a senior fixed income research role at a large institutional investor. Any thoughts as to the feasibility of a latter-career transition would be much appreciated. (Even if attaining a CFP designation did not translate to a job, I'm thinking I'd benefit from, and maybe even enjoy, the knowledge "for knowledge's sake." Thank you.