How I SURVIVED Being a Financial Advisor in My First Year
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- Опубликовано: 29 дек 2021
- Advisor Secrets Newsletter: josholfert.ck.page/2fad371c0a
Today we talk about the first year of being a financial advisor and how I managed to survive it, and the skills that I managed to grow throughout the year.
Instagram: / josh_olfert
Twitter: / josholfert
Haven Wealth Management: www.havenwealthmgmt.com/
Josh Olfert is a professional CFP financial advisor and the Founder of Haven Wealth Management investment fund based out of Winnipeg Canada. Through this channel Josh shares his knowledge of wealth accumulation and personal investing to the world, in an effort to improve financial literacy and help everyone achieve their financial goals.
All numbers and figures discussed in this video are purely for illustrative purposes and are not to be taken as financial advice.
As a young advisor (surviving training)- the fear and insecurities are the most stressful part of the process. Thank you for making this content when no one out there is making quality advice videos for us. I appreciate it immensely!
Amazing! I've been there. Stick it out and press on.
I am 58, I knew next to nothing about finances, insurance etc. and I've got 5 months ago into finances. It is not easy, I have to digest loads of new information and try to understand it all. But to my surprise I've managed all the 4 certificates at the first attempt and now I am ploughing my way through the rest. On top of that the bank I am working under is making some major changes which makes everything twice as difficult. I am not earning enough money yet to support myself but I will give it a year to learn what I can and see if it will start working out.
I've been an advisor for 13 years and can say definitely say that those first 3 years can be difficult (as any entrepreneur knows). I made a few additional videos on how advisors can shortcut their steps to success if interested.
I am interested in starting the financial planner journey.
I started as an independent agent about 2 months ago, and even after pouring my heart and soul into the work, I've made about $200 to my name XD
Thanks for the video man, it helped me a lot. For us little guys, it's nice just to see people from a similar situation who have reached the light at the end of the tunnel
Hey Ethan!
The only money I made for my first 2 months was the $900/mo my dealer paid me. I started brutally slow. Keep at it!
Great job!! You worked hard for this!
“Procrastination is waiting and not working, patience is working while you’re waiting.” - Trent Shelton
Heard it today! On time 💯 congrats on your success, it truly is a journey!
Fantastic wisdom in this video. Thank you.
Experience speaks the truth. We’ll explained.
Thank you so much for your helpful tips! You're words are so relatable!!!
I’m so glad! Thanks for watching.
Im so sad you stopped posting. Your videos are truly a blessing
Agreed.
Great video. As an advisor going into my second year, your message resonated and impacted me in many ways. Through continuous patience and grit I feel confident I can attain your level of success in this career. Thanks, Josh!
That's awesome Dave! Stick with it. And please feel comfortable aiming much higher than me. If you do it right you can surpass me by a mile.
@@JoshOlfertCFPI'm a new adviser who has a mutual fund design that pays up to 40x the market rate on the sp 500 without increasing risk. I also have several other product designs that outperform the market. However I have zero operating experience. The plan is to give LPL financial an equity percentage to help with daily operations, and to help get the funds to market. Is there any advice you would give me?
I had an aggressive sales manager too that really pushed me and toughened me in this biz. It really made me grow, it helped me survive.
It wasn't comfortable but it was exactly what was needed for me! A great analogy for personal development as a whole.
Thank you for making this video. I’m finishing my Bachelor’s Degree in financial planning this winter. I passed my SIE while I was in college and I’m currently studying for the series 7. Hopefully the second attempt goes better. I’m a mix of nervous and excited about becoming a financial advisor. This video helped keep me moving forward
The nerves are totally normal! Even among the high performers when they started out. Hang in there!
You got this!
Thank you so much Josh. I needed to hear this!
Stay strong!
U don’t understand how much I relate to this video, it’s like it was made for me. I almost went and played college basketball and instead took the same route you took. Im 20 and just passed my 65 but I’ve been struggling because I get so nervous during meetings. Im a very social person but for some reason im like a different person when it comes to client meetings. I try to learn 24/7 and gain as much knowledge as I can so I can overcome it but it’s been tough. This video definitely helped me trust the process and keep grinding. Thank you!!
I'm glad it resonated Brandon! If you're journey is anything like mine you're likely going to look back on this time and remember it as the hardest period of your career, because it is. It will get better!
Hello Brandon. Just curious, how’s the industry going? Would like to see where you’re currently at.
learning from you and applying it here in Brazil. The financial advisor model is just staking its first steps here. Thanks for sharing
Awesome Dyogo! I envy you for being in an emerging economy. Brazil has massive potential and your business is going to boom! Stick with it.
Awesome video josh! Currently I’m still using the cold call strategies that people used to use. I know it’s old school but currently the company has no guidance with the strategies you’ve been using. I’d love to see a video about new age prospecting strategies! Keep up the awesome work brother!!!
Hey Kevyn!
I often talk down cold-calling but that's mostly just because its a massive weakness for me. I'm way better and more comfortable broadcasting out free value and seeing who responds. That being said I know a ton of people who do it very successfully to this day. The truth is that any prospecting method, regardless which on you pick, takes 12-18 months to get any traction.
Thanks for the comment! (and for watching)
loving these videos. very helpful. i would like to see a video designated to social media (instagram etc) and how to book meetings with followers, what to post etc!!!
Sounds great! Thanks for the idea (and thanks for watching)
Thanks for sharing as always! Would you talk about your marketing and client sourcing methods? I’m very eager to learn from you. I think your attitude is amazing!
Thank you! I appreciate the kind words.
I've got a bunch of videos about this (with more to come). Check out the "For Advisors" playlist on my channel.
Cheers,
Thank you for this content, I’ve just finished my series 7 exam and getting ready to head full force into the industry! Like others have stated, I’m both excited and nervous, but videos like these give me some extra reassurance that no matter how things start, as long as we stick with it everything can work itself out!
Did you get a job yet?
@@BadWeatherfreak currently working with a firm, going through the onboarding process and finishing up the Series 66!
How hard were the 7 and 66?
Hey Josh I see some business feed u prospects , of course I’d imagine they also take a cut for giving them to you, would you say the sucess rate is still 10 percent following that model? Seems less difficult than finding all leads yourself. Also did you run into issues when leaving your own firm, I’d imagine it is a gray area between taking the clients that are associated with u at ur former firm to your own business. Or is it as simple as just you can’t solicit it but if they want to follow you it’s fair game? Thanks bro
Broooo, thank you!
My man! Thanks for watching.
You are my idol 😊 I’m just starting this career i haven’t passed the exam yet. It’s pretty hard and sometimes I wanna quit.
Hey Josh, was that chart showing your growth in your own firm or since you started at the original firm as a teenager? Thanks for the advice!
This is from the original start date at a larger firm! (Late 2015 to Mid 2017). This chart doesn't show any transaction revenue (Front End Loads .. yikes, Insurance, mortgages, etc) which were 80% of my revenue in those first few years.
I know you said you hate(d) cold-calling but, what about asking for referrals? Did you ever ask friends/family and existing clients for referrals and, if so, do you have any tips on how to be more comfortable doing this?
Hey Josh!
My philosophy has always been that referrals are a byproduct of doing work that produces results or gives people a "wow" factor. Referrals aren't something that should be asked for. Eventually over time it will become your number one source of prospects, but it requires you build up enough goodwill with your client base.
I could be completely wrong though! Most of my trainers/managers in the early years tried to force me to ask for referrals. I hated doing that.
@@JoshOlfertCFP Thanks for the honest response. I'm entering the field as soon as I get my license. Quick follow up question: if you dislike cold-calling and asking for referrals, what tips do you have for someone entering the field to find prospective clients? Thank you!
No problem at all! Thanks for the question.
The most important thing to know is that every method of prospecting will take 1-2 years to bear fruit. So regardless which method you pick you have to stick with it for a long time. For me its been all about digital content. If you have social media start sharing cool finance content you come across, then over time build out your own content by blogging, summarizing what you're learning and the books your reading for others, do podcasts, video, whatever method you like.
I find this way more fun, developmental and higher leverage than cold calling. You can put in 1 hour on the phone and call 20-30 uninterested people OR you could put 1 hour into a blog post, podcast or video and get 1,000-10,000 hits from interested people.
If my supervisor tells me to do solicitation to my personal network (friends, family, etc.), I am quitting on the spot.
I graduated approximately a year ago. I have been offered Financial Representative position as an entry and will be able to become a financial advisor in a few months after getting my licenses. The base is around $30,000 + commission. I'm kinda scared and not sure if I should take it or not.
Hey Josh I just recently switched my major to finance and I'm just not sure where to start. I'm trying to put myself in the best positions to be successful. I have an interest in being a financial advisor, I have good people skills but am not knowledge on the market and different aspects of offering financial advice. Any advice on where to start? Books to read? Videos to watch? I'm feeling how you described and am feeling as if I might not be cut out for it. Any recommendations would be well appreciated.
Hey Cameron!
I'd highly recommend starting with the personal finance section on my book list here: jolfert.com/reading-list/ ... in addition to that the Navalamanack is a much read and its free online. If you decide financial advisory isn't for you these books will be a major help in life anyways so there's no downside in reading them.
As for being an advisor, if you're going to go the associate-advisor route and work under a successful advisor for a few years first, you don't need to know all that much. If you want to hit the ground running building your own book of business it'll require that you're all-in for at least 3 years (on your work hours, education, energy, time, etc).
Hope this helps!
@@JoshOlfertCFP thank you so much! I really appreciate the reading list and will start looking into them ASAP!
Hi josh, just curious how did you get from a financial advisor to starting your own business ?
Hi Lui! Thanks for watching.
It requires an understanding of the plumbing behind the industry but once you understand that its not all that hard. You just need to:
1) Get the appropriate licenses
2) Get the appropriate insurance (E&O)
3) Convince a broker dealer or insurance agency to contract you with their distribution network (This is probably the trickiest part)
4) Setup a Corporate structure and finances
5) Land and retain clients
Curious what you made that first year? Just finished my first year and can for sure see how the business is building on itself. Of course didn’t make much as a 20 something year old advisor in their first year but was curious where you were at.
Just dug up my records because I was curious too. $30,000 in year 1. Then hit stride and did $98,000 in year 2. Both of these numbers are juiced up though because I hit bonus targets with the fund dealer I worked for. I'd estimate without bonuses I really earned 20% less than that.
Those years were tough. I look back on them fondly but wouldn't wish it on my worst enemy. It gets so much better! Stay the course and hang in there.
@@JoshOlfertCFP love to hear that! Yeah made pretty similar first year and feels good to have some “guaranteed income” going forward with manager accounts/ financial plans etc. That’s a great jump for year 2 though. Goal right now is to increase by 50% every year for the first 5 years and then reevaluate.
Appreciate the transparent responses for us newer advisors!
@@GSTT40 My pleasure Eric! Definitely possible to increase by 50% through those first years. The mental model for me was always just "survive 24 months." After 24 months there's light at the end of the tunnel. All the seeds you plant with no rewards in years 1- & 2 start to bear fruit in year 3, and it compounds from there.
If I could go back and start again from where you are I would make one big shift: The moment I was self sustaining on a residual basis I would make time every week to step outside of the status quo weekly grind to invest/work ON the business rather than IN the business. This sounds so obvious but its not ... once you have momentum its seductive because you can just loop your process to the income you want (which feels really good after living in scarcity for 2-3 years). I got stuck in that 1:1 "another-day-another-client" process for a few too many years. Its important to shift to applying leverage sooner.
@@JoshOlfertCFP I definitely hear that! That’s a great mentality. I’m starting to work on that time on the business after making some headway and I’m excited for where it’s going. Especially with placing more seeds on a wider basis. Appreciate it!
Ur inspiration bro..same thing happening with me
Love it! Thank you!
If you were to make $9,000 in commission today in your first year what are some tips you have to stay afloat financially until your business starts progressing in the coming years?
The reality is that most financial services businesses also allow you to do transactional or commission based product sales as well. Life Insurance, Mortgages, or Fee For Service financial plans etc. These products pay bigger up front and I didn't include any of those revenues in that chart, but they floated me through those years. Luckily I had a rental property for cash flow and I had relatively healthy savings for my age. I definitely put a dent in all these savings through year 1-2.
I was also 19. I'd expect someone at 25, 30 or 35 would be able to grow much faster.
Do you invest all clients in the same stocks ?
Yes and no! No, because every client’s portfolio is slightly different. But yes, If two clients are the exact same avatar, with the same goals and the same time horizon with identical financial plans, why should the investment strategy we recommend be different? The truth is that we’re trying to be as efficient as possible in solving hundreds of unique but similar needs. You can kind of batch clients together in groups/avatars and propose similar philosophies for clients with similar goals. From here we derive models or mandates that can be run or executed once but apply across many different clients.
@@JoshOlfertCFP thank you very much. helped clarify a lot. one day i would love to speak with you, i am in college for business & finance so be an advisor and your youtube helped show the ropes.. BLESSED !
I appreciate the hard facts presented here, but starting out with additional passive rental income? that's a huge leg up, I'm sure everyone agrees. It's almost like not having to worry about being homeless and not eating must've just gone right over his head.
How can you explain that to your girlfriend and family?
That's a great question! Its your job first and foremost to make sure they're taken care of -- so you don't want to take any unnecessary risks. But here's an analogy: A lot of young investors believe they can avoid risk by savings or investing very conservatively. But the reality is that the risk just manifests later. If they don't take on any risks right now, they wont get sufficient growth to provide for themselves and their family in the future, or even beat inflation.
The same thing goes for your career: You get to choose *when* to take your risk. You don't get to choose not to take any. If you don't take the risks early in your career the risks just manifests later (being stuck in a job you dislike, financial stress, no retirement plan). I'd ask my girlfriend and my family if that's what they want for me and themselves as a counterparty.
I'd argue that its always easier to take the risks young. You have more energy, more kicks at the can and ultimately more runway if they don't work out.
@@JoshOlfertCFP Hey Josh I really appreciate the response. I am going to talk to them because this is something I want to do
No problem Michael! Future you will be thankful you did.
Would you be interested in letting me edit some shorts for you for free?
thank god i found this video, is there anyway you can help me please ...! what is your contact info we need to talk ... lol
Theres no need to move around as much as you do while talking
Stop it.