When A Good Offer For A First Financial Advisor Job Really Isn’t
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- Опубликовано: 13 июн 2018
- An "#OfficeHours with Michael Kitces" Periscope, talking about breaking into a financial advisor career. For further details, see www.kitces.com/blog/first-fin...
UPDATE... I have been in the industry for 13 years and this video is spot on. Despite one concerning recent change. The financial product sales culture is starting to leak into the large RIA world. It is very concerning. I am seeing more and more large RIA firms structured as such, looking for sales people to drive growth. These companies are always hiring and promise unlimited earnings and freedom but as you dig deeper, you realize it is a pure sales job.
Can confirm. All these RIA's are hiring like wildfire for a "Junior Advisor". It's all the same for entry level.
Great video! I watch a lot of videos to learn stuff and you went straight to the point clear and precise, Just what I was looking for. Ty
I watched tons of videos on being a financial advisor and this one was the most eye-opening! Thank you!!!
I work in an administrative operations role at a big financial institution and I’ve had doubts and felt like i was in the wrong place because it’s not directly linked to finance or advising . But this has helped me gain a lot of perspective and alleviates some of my stress about having to find the perfect role. I feel more confident in the fact that i can build the advising career from the point where I’m at, thank you
Very good information. Some of this I suspected but had no confirmation of , you really highlighted the Business model and how it can play against you.
Great video. As a young advisor I recently was offered jobs by some of the well known names but immediately I realized exactly what you said.... it’s a sales role Not conducive for professional development especially if the client base is targeted towards a niche.
Just found your channel and video. Thank you for this, really needed to hear everything mentioned!
Thank you! This video has truly helped me!
This is so honest advice. Exactly what’s happening with me. Even with series 7 and series 66 licenses I just got. I am a career changer guess like you said step back and gain more later. Happy to find your videos.
Thank you
I hate how a lot of jobs related are just what he said. It seems like they like to label the job as financial advisor but it's mostly a financial salesperson job. It's great for these companies like Michael said because it's a win-win situation for them.
Thanks for this! Gotten offers like this.
Yeah this is a great video. I joined a firm which you just described and the entire thing was pretty much sales coated in "advising for the betterment of clients."
Thank you for the insight! This helped me quite a bit.
Thank you so much for this!
Thank you! I am going to do an interview tomorrow and because of your advice and advice from others, may not take the job even if I am offered 2nd interview. But I am doing the interview for the experience and to ask questions! Thank you!
Great video. I think you are spot on regarding finding a paraplanner position. It’s the natural path for true advisory firms giving non sales advice.
Yes.
This was great, I've been looking for "financial freedom now" for a while now, and I think this has helped. Ever heard of - Ferapt Freedom Fanboy - (search on google ) ? Ive heard some decent things about it and my friend got great results with it.
Very honest, I appreciate your videos. You are the #1 informer in this space.
Thanks Bryce! Happy to be of service! :)
new life insurance agent here. I was shocked on how many things you were right. Even though I’m working in Mexico, I have went through almost every situation you mention at the beginning of the video. And, at this point, I just want to finish a whole year and then I’m changing careers. And it is funny because that has been in the back of my mind since day one “I’m not an advisor, I’m a salesman”.
Maybe going to get a CFP or CFA. At least I have 8 more months to think it through. This video was the final push I needed. Thank you.
Seems like a lot of job advertisements are like that. It's great for these companies like Michael said because it's a win-win situation for them if it's a commission-only job. They get you to sell to friends and family and if you don't make it in the job they keep your clients. I find that working at Fidelity would be ideal for me. Work as a customer rep that supports their advisors and later step into advisory roles.
wow this was so helpful..thank you
Listening. Teams and support roles.
Fantastic video. I recently made the decision to switch over from traditional insurance sales ( life, Medicare, supplemental, critical illnesses, etc.), to the financial side. What I learned is you have to be sponsored by a company for most of the finra series that allows you to actually be an advisor. What I want to tell people is you're absolutely right. These companies will look to hire you just for potential prospects and don't care if you stay there or not (commissions only sales). Moral of story is if you're starting off go to a company that pays for your licenses and gives you a base salary. Starting salary generally ranges from 30k starting, but your value will be much higher in 3 to 4 years, and you'll pretty much be able to negotiate your salary with any company from that point forward. Don't get caught in the comission hype. Trust me. They'll use you for all you have. Remember it's a win, win, win for them
I just experienced the commission only for a few months. Spot on comment 👍🏻
This video made me leave my financial salesman job. I just got an offer from a small financial planning firm that primarily caters to physicians. Instead of trying to get clients, I’ll be learning behind CFPs for advice
@Bob Sounds like a very positive change for you! How did you find the new financial planning firm that you ultimately went to work for?
@@MichaelKitces thanks! Found it through the CFP board
Is financial salesman same as financial advisor
Super video great advice ..
"You won't find the perfect job right out of the gate." Great advice there. It happened to me, I had a sales job for an insurance company and I'm now moving to a wealth management division at one of the big banks. Once I build up a decent book of business, and get paid to get my CFP, I'm going to move to an independent RIA
How has this gone? I’m graduating in spring and looking for entry level job and have fears of going commission
Thank you 🙏🏽
Great information
Thank you for this channel and video Michael. It’s hard to believe this is 5 years old. I’m a newly minted advisor with a insurance license, Finra SIE , 66 and series 7 in progress. I am also a career changer, and this was good advice for me. I will look for entry level jobs so I can train on being a better salesman. What resources do you have available for entry level career changers like my self?
wow thank you so much
Thanks for this :)
I spent a year working for a broker/dealer (one of the big whole life companies) to get some experience and like most, I flunked out due to a lack of market to sell to and no training in cold prospecting (had to learn that on my own but still wasn't enough). I live in Las Vegas, and I have only found one firm that is looking for paraplanners and they aren't growing fast enough. 1-2 planners adding per year (usually recruit from their broker dealer). I like sales, currently work in legal sales now, but I'm not sure where to go to, to advance my career. It seems like theres a catch 22 even for most financial sales companies (other than mutual companies, still have to sell enough insurance to get securities licensed) because they all want some sort of minimum licensing requirements (7,66,63, banking experience) which require a sponsor for you to sit for an exam. Not exactly sure what I should do. Change cities? Work as an insurance broker part-time until I have a book to grandfather in? Or what?
Great reader!
When I started in Financial Services with a certain company, I did get my life insurance license as well as my SIE, Series 6 and Series 63 licenses. Then I went forward with applying what I learned but it wasn't for me to "sell" the products, let alone recruit people when I was still learning myself. (Sure y'all can name the company). But I still learned alot and now know what to look for if I pursue it again. Thanks.
Hi there, I'm looking to start a financial consultant position and training soon, but this is one thing I was afraid of...so is it pretty much a sales role?? Tbh I am so not a salesman type!
@@inOZ8434 The company I'm walking away from requires you to recruit people into the business and then sell them the products and then teach them to do the same.
I Plan following a career in financial advising
Sales is part of being a financial advisor. You need clients to talk to in order to help them. I think I’m more confused now
did u use an rtmp server to stream this? good stuff broh
Thank you, I am in the process of a career shift from A/P support to financial planning. I have been taking classes in finance and now studying for the SIE. But I don't want to get bogged down in a sales job, I've lost too many years moving from one entry level position to the next. My end goal is a financial analyst for a specific industry segment.
Any advice or mentoring would be most appreciated. 😊
I would hate to bash other companies but I’m interested to see who I should stay away from as a recent graduate. If I’m not mistaken the biggest takeaway was to ask how does the firm obtain clients during the interview process?
Thank you. No... I really mean it. Thank you!
Extreme truth
I'm in the middle of the obtaining my license for life and health. Is it worth it to obtain?
This is true
I am shocked to see this is a new for 2018 video not 2008. I think things have been improving at the bigger firms and the sales aspects are a lot less now with most clients going fee based and newbies earning salaries and asset bonuses
It's improving at some firms, but not all, and there are definitely still a number of VERY large firms that recruit aggressively for "financial advisors" into what are really pure sales jobs. As well as a lot of smaller firms that do it. (But the big firms attract more candidates simply because of the larger size and scale of their recruiting efforts.)
It varies, tremendously, by the firm. :/ But many are still ultimately sales-centric, and starting salaries are still only there for 1-3 years under the person is transitioned INTO pure sales compensation. :/
What about being a financial advisor for Primerica?
sincere531 it’s an MLM
@@EddieRodriguezPA yeah they are an MLM ...run away
Hi thanks for the videos. I'm looking at a Morgan Stanley 3yr training program with a salary. I think it would be good exp but not sure if I should take the position. Should I get my licenses and get my feet wet then move on?
If you're asking me, if you're doing ok, stay. But if you want to move on, or if you're not hitting your numbers, your managed money clients can be migrated where ever you go. (I use to be at MS) Are you going the Financial Adviser Associate, or Wealth Adviser Associate program?
Jay Hilario Thanks for the reply. FAA. Would you recommend MS to get started
Did you get past the whole "A day in the life" and the rest of onboarding they put you through? I wouldn't say no to it if it's being offered. It's not going to hurt your resume, and they don't really hire like crazy like the life insurance firms do, where they hire (none of them have base salaries) anyone that passes those psych tests they make applicants take. At least where you're looking at, they'll pay your for 3 years.
Jason Abramowitz message me on LinkedIn, I just talked about this the other day. I have a few friends in it. Love to hear what happened
you will have few friends in this business and this guy is one of them. I left the business years ago and have never been happier. Horrible business.
What do you do now?
Any opinion on thrivent?
Following on this. U get any information?
Are all firms like this, as far as getting your own clients? There is no position where you're paid a w2 salary?
@Gem20ish The W-2 salaried positions are typically not "financial advisor" positions out of the gate, because established firms aren't comfortable to put existing clients with brand new financial advisors who are still learning their craft. W-2 salaried positions would more likely be a paraplanner or Associate Advisor. Many people get their foot in the door by taking a Client Service Administrator type of role (which is more admin/operations, supporting a financial advisor in the firm) and then move into an Associate Advisor role after 1-3 years.
@MichaelKitces Thank Michael!
I got my foot in the door. I recently started working as a Financial Advisor Admin. I just need to take my last exam.
My question is, let's say 1 year down the road, I want to apply for an investment advisor role. Are the only jobs in that field basically cold calling and building books of business? Is it the same for big name firm like Fidelity? Goldman? Banks?
Because all the jobs post I see mentioned a salary. That's why I am very confused and want to make sure I know everything I need to know about this.
Thank you!
Whats the most useful series licence 7/63/65/66?
Series 7 and 66 is the way to go
I've been offered my first financial advisor job at Florida Financial Advisors. Any advice? I would have to move and I'm not sure if I should take this step. Any advice is welcome
Andres Lozano I’m in the same boat as you brother. Same company just in their Philadelphia office
Which is what led me to finding this video
@@coreyf9363 Oh wow! So here's my update after a lot of research and deep evaluation. FFA could be a great place for you to start your career if you put in the work and effort (based on info I got from reviews and lots of reading). It seems to have a lot of potential when it comes to the mentors you can meet and the knowledge you can get. Idk how deep you might be in your finance career, but definitely try to pass your SIE and series 7 exam as soon as possible (to either work w them or some other company. Your licenses make you marketable either way). Don't get discouraged if you find yourself doing a lot of cold calling at first. A lot of people who start in the business are unaware of this. I personally see it as a way to start making/fixing mistakes and learn. I've been sinking and swimming after I graduated so I've had to learn a lot of things school doesn't really tell you and that's why I like seeking advice. I declined the offer because even though I see potential in the company as a whole; I'm not prepared to take this financial risk (living alone, paying rent, utilities, plus the extra expenses of moving without pay until first sale, etc...) If you live in Philly I say take the offer and see what they got to offer you. Experience is what it's all about. At the end everyone's experiences and views are different so if you have everything on your favor and nothing to lose, just do it.
Good luck 👊
lol how did it go at Florida Financial Advisors?
@@coreyf9363 lol how did it go at Florida Financial Advisors?
Problem is a lot of those paraplanners never learn to sell and they will be salary the rest of their lives. Never truly own their own business.
just outsource lead gen to some associate lol
Every advisor doesn’t need to know how to sell if they are dedicated to providing value to clients
I never watched this video..
I just happened to look on my history tab for a previous video i watched today and saw this and 2 other finance videos.. i never clicked and watched this video.. what are you up to RUclips?