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Career Q&As
Q
I am a recent university graduate that has passed the LLQP (Provincial Exam) as of March 28, 2007.
After working as an Insurance agent for a few month, combined with the fact
that I found out about the CFP designation, I feel that I am VERY interested
in working in a SALARIED position one day as a CFP.
I just have a few questions:
1) Are there a lot of jobs available for CFP's? (salaried positions)
2) Where do CFP's typically work in salaried positions?....and are there
government positions available?
3) My current situation: Although I have my Life Liscense and hope to have
my Mutual Fund liscense within the next few months, what kind of jobs can I
get with those TWO liscenses? With those two liscenses, would I be able to
get a decent salary?
4) What would be the BEST way to go about getting a salaried job with my
current credentials? (i.e. university degree, Life Liscense). Do banks look
favorably at people who have life liscenses?
I sincerely thank-you for any help that you may provide me.
AThere are many salaried jobs available for experienced people who hold a CFP designation. Your experience as a an insurance agent combined with you academic background should serve you well when the time comes for you to approach perspective employers.
Generally speaking, the banks and credit unions will typically have more salaried positions available than equivalent entry level jobs with a life insurance company. The banks and credit unions are attempting to rapidly expand their sales forces of financial planners to keep up with increased consumer demand for this type of service and advice. If you look on the major web based recruiting public websites, I suspect that you will find many jobs for financial planners offered with the banks.
You should note that banks generally do not sell insurance products (other than certain creditor insurance products for the loans that they provide their clients with and some travel insurance policies). On the other hand, financial planners working for banks and credit unions are very involved in the sale of mutual funds and other investment products. If insurance is of great interest to you, you may be better suited for a salaried job at an insurance company. The majority of these entry level positions would typically be found in a customer service call centre.
I am not aware of many government jobs for CFPs, except perhaps for some financial planner positions working with certain government affiliated credit unions. There may also be a few positions requiring a CFP at certain provincial agencies where personal financial planning knowledge is required such as the office of the public guardian and trustee.
Regardless of your choice of career path, a CFP will certainly help you towards finding a good job and enhance your bargaining value with potential employers.
I hope this helps a bit. Thanks for your question.
Q
I am considering a career change. I currently work as a project manager in an oil and gas fabrication shop and feel I need a change. I have been in this industry for 20 years and I am tired of the constant fluctuations in work and unrealistic expectations of both the client and employer.
I recently took a continuing education program "Personal Financial Planning" offered by SAIT using the distance education method. I found this program quite interesting. This program started me to think about possibly changing my career.
My concern is that if I start down this road, there will be no work. I just do not want to up and quit my current job so I am willing to learn over the next few months prior to actually entering into any financial planning.
Is there anyway you could advise as to what the future prospects are for financial planners? I know that it is not possible to predict the future but I do not like making uninformed decisions.
Any input you can provide would be greatly appreciated.
A While it is not possible to predict exactly what career opportunities will be available in your local market, there are very clear demographic trends that indicate the need for financial planning services is rapidly increasing.
Over the next several years, an extremely large number of baby boomers will be retiring and along with that comes the needs for comprehensive financial advice. Most financial institutions have recognized this and are trying to aggressively increase the number of financial planners on staff to keep up with expected consumer demand.
Also, demographic trends show that an enormous amount of wealth will be transferred from one generation to the next over the next 10-20 years, which will create the need for estate planning advice for those who will be transferring wealth, as well as integrated financial advice for those who will be receiving the wealth. Again, this increased need for advice will have a very positive impact on job opportunities in the financial planning field. Individuals holding the CFP designation will be particularly well positioned in this regard.
If you review the number of job opportunities for financial planners that are posted on some of the large public recruiting websites, I expect you will find that there are many and that the number of opportunities are increasing all the time.
I hope that this helps a bit.
Q
I am currently working for CPR and am writing to you because I want to have your personal insights on some aspects of the CFP designation. I have been working in accounting for the last six years or so and I am considering a change in my career path and I want to be more in finance now than accounting. I am really tempted to do the CFP course leading to the designation. I would appreciate if you could enlighten me on some aspects of the profession in terms of the different job prospects.
I am also interested to know how to get into the financial planning industry, which is quite different from what I am doing right now. What are the different requirements needed to get into the financial planning world if you don't have any experience? What are the range of salaries offered? What are the different jobs that can be performed by a CFP? Are CFP professionals always those dealing with customers? I would very much appreciate if you could provide your answers to the above questions. Thanks for your help.
A Regarding other requirements to enter the financial planning field:
If you intend on working as a financial planner dealing directly with clients, you will likely need to complete certain additional academic courses in order to be hired (in addition to a financial planning designation such as the CFP). Most employers will typically require you to be licensed to sell mutual funds or securities, insurance, or some combination of these products.
If you don't have any experience, it may be more difficult to obtain a position with a significant base salary. However, if you are willing to work on a commission only basis, a lack of experience may not be a significant obstacle with certain employers.
Regarding typical salary ranges:
It is hard to say what salary ranges would be available for you. With little or no experience, I would be surprised if you would be offered a salary in excess of about $40,000 unless you brought some other very relevant experience that a prospective employer considered to be valuable. However, that is not to say that your total compensation would be limited to your base salary as you would likely participate in an additional variable compensation as well.
More experienced financial planners working with a bank or credit union would typically have salaries ranging between $50,000 and $75,000 and would also have some additional variable compensation as well.
Regarding different job opportunities:
Most financial planners would have some form of client contact, however there are certainly some roles where this would not be the case such as academic, training and technical writing roles. Also, some financial planners have a greater degree of responsibility for selling products and services than others. As a new financial planner, I suspect that a sales or client service role would be the most likely role to be hired into. Regardless, it is a wonderful profession to be involved in if you are committed to it.
I hope this helps a bit.
Q
I am 48 years old and I am planning to take a 3 year CO-OP course in Financial Services this fall.
I was a full time worker for 20 years before I started my family. I worked at Toronto Dominiom Bank and C.I.B.C. for the total of 5 years (Current Account Department). I also worked in sales area like an assistance for a Real Estate Agent and New Car Sales Representative. I enjoy working with different client daily.
My question is: Am I TOO OLD to join in the Personal Finance Team? My goal is to get the CFP Exam and work ONLY in the Bank environment for a fixed amount of hours weekly for 10 more years. Do they pay by commission or not? What is the rough income will I be expecting as a new CFP get in general?
A My mother started in this business in her mid-40s, so your age is certainly nothing to be worried about. I know many people who start working in this business in their mid-50s!
To hold the CFP designation you will require 2 years of work experience within the industry, which can certainly be obtained in the planning department in a bank environment.
Rather than a three year CO-OP course, you might want to write the Canadian Securities Course and then try to get right into the industry. You can also start the educational requirements of the CFP, which would be attractive to a potential bank. I do not work for one of the banks, so my understanding of their pay is limited, but I believe there is a small salary and a bonus component based on production.
If you are open to working outside of the bank world you could essential start working tomorrow, with the companies paying you on a commission basis but they will pick up the upfront licensing and training costs. Freedom 55 Financial for example.
Q
I am currently working at a financial brokerage and I hold Mutual Fund and Life (Insurance) licences. I have been working as a financial advisor for two years and am seeking a way to advance my career. I know the process to become a CFP, but I have several questions:
- Where do CFP professionals work and what additional licences or qualifications does CFP bring?
- From my experiences, most agencies and banks only require CSC (securities and mutual fund) and/or Life Qualification Program to sell insurance. So where does CFP come in? I don't know much about CFP, please give me a complete picture.
A Completing your CFP certification can be an excellent way to advance your career and increase your credibility with clients in your current role.
CFP professionals can work in a variety of roles in the financial services business including the distribution of financial services as an employee, or as an independent advisor. There are also opportunities for CFP professionals to offer financial planning services for a fee where no other financial services are being distributed or offered for sale. Some CFP professionals work in academic or educational roles with financial institutions, course providers and regulatory organizations.
In response to consumer demand, many employers who deliver financial services through an advice-based distribution channel are insisting that their advisors hold a financial planning designation such as the CFP. While the CFP credential is by no means the only financial planning designation that is available, it is certainly one of the most preferred by employers. Also, many clients also recognize the CFP as the financial planning designation that they would prefer for their advisor to hold.
Many financial institutions have developed career roles where the advisor is responsible for managing an assigned group of affluent clients and in order to work in such a role, holding a financial planning designation is often a requirement.
I hope that this helps a bit. Thanks for your inquiry and good luck with your career planning.
Q
I am considering a career change. I'm seeking an opportunity that allows me to help people in a significant way. I have worked in the healthcare industry for the past 10 years and I have a strong need to continue helping people. I am also a teacher at heart and I enjoy financial issues. Becoming a Certified Financial Planner professional seems to be the next logical step.
Having a family to support, my questions are very practical:
- What is the expected/average compensation for someone like me who is new to financial planning, and what is the expected/average maximum income an experienced financial planner would earn?
- Do certain industry segments of financial planning compensate better than others?
- Am I marketable, being 37 years old and new to the profession?
A
Helping people reach their goals is certainly one of the most enjoyable parts of being a CFP. To answer your questions:
- Your income level will be determined by the compensation model you start with. When working for the large banks in an entry level position you can expect a regular, albeit small, salary. Alternatively you can work outside of the banks on a commission only scenario, which gives you the opportunity to earn in excess of $100,000, but unfortunately also the danger of earning $20,000 or less. The average income of a successful experienced advisor would be in the $100,000 range.
- not to my knowledge
- in this industry it is better to be older than 30 and younger than 60, as your age can help build trust with clients. Your success in this business is highly dependant on having a viable target market that you will be able to approach as potential clients, or the ability to cold call with ease.
It is important to note, to be a CFP you must have at least 2 years of work experience in the financial planning industry.
Hope this answers your questions, and best of luck!
Q
I am currently changing career paths, and am entering the wide world of finance. I am looking at two possible pathways right now, and was hoping you could perhaps share some insight. I would like to know the pros and cons of becoming a CFP professional over an Investment Advisor, and as well the difference in the two monetarily speaking. As well, what would be the best way for a fresh CFP to get started in the industry? I know brokerages are looking for new determined brokers, but what about CFPs?
A
There is no need for you to choose to be either a CFP professional or an Investment Advisor.
Several years ago, most Investment Advisors had traditionally focused on providing investment advice, securities trading and portfolio management as their core value proposition to clients.
However, over the last several years, there has definitely been a trend towards full service Investment Advisors providing comprehensive financial advice together with investment management services. In fact, many Investment Advisors in the business today hold the CFP designation and follow a financial planning approach to managing their businesses. Many brokerage firms hiring new Investment Advisors today prefer to hire candidates that are committed to a financial planning approach because consumers are demanding this type of service. This is also true of non-brokerage firms that primarily distribute mutual fund and insurance products.
Most or all of the banks and credit unions have developed sales forces of financial planners to work with their clients who prefer to be served through a retail branch network. Today, there are definitely more CFP professionals working in these roles than there are for brokerage firms.
As far as the best way for a new CFP professional to get started, in my opinion, it would probably be preferable to break into the business as a salaried employee of a bank or credit union rather than attempting to enter the industry as a full service investment advisor. This would enable you to practise your skills, apply your knowledge, build confidence, and earn a relatively stable income while you are learning. The opportunities for these roles are numerous and increasing at a rapid pace.
The expectations placed on new full service investment advisors by their employers and increasingly demanding. This is not to say that it is impossible for a new CFP professional to enter the brokerage business as their first role. However, I would see that as a higher risk strategy, particularly for individuals who have limited entrepreneurial experience.
Along with the higher risk of entering the full service brokerage business comes a higher potential for earnings as well. Generally speaking, a successful Investment Advisor could expect to earn less than a salaried employee of a bank or credit union in the first couple of years, and more after they become well established and develop a larger and more profitable client base.
There is no one right answer for everyone. Regardless of the approach you decide to take, financial planning is a great business to get involved in and the satisfaction and rewards can be very attractive.
I hope this helps a bit. Thanks for your question.
Q
I am currently undergoing a career change and have given serious consideration to a career as a financial planner.
I do not have previous work experience in the finance industry but have worked as a senior manager overseeing program operations for a service based industry with an annual budget of approx 3 million dollars and have owned and operated my own small business. I have looked into taking the Certified Financial Planner Course and the Canadian Securities Course. My question is, with these two courses and little or no previous work experience in the financial field, how difficult will it be break in to the profession. Is lack of experience a huge stumbling block to getting that first job. Should also mention that I am also 41 years old, so I do have other experience that I can offer to an employer.
A
The fact that you have owned and operated a small business is valuable experience that would be looked upon favorably by potential employers in the financial planning field. Any past experience that demonstrates an ability to work in an entrepreneurial environment will help you in this regard.
There are many firms that are willing to consider hiring a financial planner with limited experience provided that they have skills that will be relevant to the profession. Business development, sales skills, managing client relationships and simply having a mature attitude are all examples of skills that are highly sought after by employers in the financial planning field, regardless of the industry in which these skills were acquired.
Many clients who have accumulated substantial wealth seem to prefer working with a financial planner who is of your age, or older. Because of this, I feel that entering the profession at your age is in no way an obstacle, and may even be beneficial.
If you intend on working as a financial planner dealing directly with clients, you will likely need to complete certain additional academic courses in order to be hired (in addition to a financial planning designation such as the CFP). Most employers will typically require you to be licensed to sell mutual funds or securities, insurance, or some combination of these products. If you haven't yet looked into this, I would suggest that you review the expectations that potential employers will have around licensing to be sure that you are prepared when the time comes to approach them.
Finally, you should be encouraged that the financial planning field is expanding rapidly and in the last few years, there seems to be more jobs available for financial planners than there are experienced planners to fill these jobs. This trend is expected to continue and demographic forecasts suggest that the need for financial planning services will continue to create lots of opportunity for those involved in the business.
Q
I have been in pharmaceutical sales for about 8 years but would like to make a career change. I have no financial background but I do think I understand people and relationships and am eager to learn. I have noticed that several colleges offer post graduate diplomas in financial planning which you can study in the evenings.
1) Should I enroll part time in a college course while continuing to work in pharmacy or try and find an entry level potion at a bank and study while I work. Is it possible that if I do find an entry level position at a bank they may assist in my studies for a CFP designation?
2)I have also noticed that there seems to be several organizations that offer courses of study leading up to writing the CFP Exam. Which do you recommend?
3)Would you recommend taking the Canadian Securities Course as well? Do I take that before or after the CFP Exam?
A
To answer your first question, that decision is really based on how dependant you are on your current income, and will an entry level position at the bank pay significantly less than your current salary. If the money is not the deciding factor, you might be better off starting to work in the industry first to determine if it is truly something you enjoy, rather than enrolling, paying for, and completing courses for something you may not like. If you secure an entry level position at a financial institution they may help cover the cost for courses and designations like the CFP.
2) Sorry, I am not familiar with all of the course work options necessary for the CFP designation, so can not make a recommendation. I would imagine they are comparable with each other.
3) The Canadian securities course is necessary to sell stocks, bonds and mutual funds. The IFIC course is required to sell mutual funds. If you intend to work in the industry selling these products, you will require either the CSC or IFIC courses prior to working on your CFP. Keep in mind you must have at least 2 years experience in the industry prior to holding yourself out as a CFP. I took the CSC course, but only use it to sell mutual funds, and then competed all the CFP course work and exam so on my 2 year anniversary I was able to have and hold the CFP designation.
Q
I am newly LLQP and IFIC licenced, working as an investment/ insurance associate. I am not too happy with the rewards and want to go deeper into the financial industry. I have heard about many courses and bit confused to join what course and why. Since I am new in industry, is it better to work as an employee or work on commission with some company? I don't have big clientage.
A
Being new in the industry, and if you do not have many clients or contacts, it might make sense to start your career as an employee. Working on commission certainly has a number of rewards, but it is very difficult in the first five years, especially if you do not have anyone to call on.
If you want to get more involved in financial planning and the financial industry, then I encourage you to start working on your CFP courses.
Q
I am in first year at Sheridan in their Business Admin Program and would like to evenually write the CFP Exam. Once I get my designation, is it easy to find work? What about the pay? I am aware CFP professionals get paid commission more then anything else, so is it hard to establish clients? If I become a CFP I would not like to struggle getting clients therefore getting no money out of it. In this career is it possible to get a salary of about $90,000 a year?
A
You have started with the right steps, which is asking questions.
Finding a place to work as a new CFP professional is generally easy as there is a wide range of opportunities in the industry, from insurance and investment companies to banks and brokerage houses.
You are certainly correct in that many CFP professionals earn the bulk of their income through commission. Typically this means a very tough first 3 years working on building your clientele, and it certainly is a struggle. But, the flip side is a very rewarding career working and helping people as well as a significant income, many CFP professionals would earn $90,000.00, and some earn upwards of $500,000.00, although you must keep in mind this does not happen overnight and is the result of many years of hard work.
Q
1) Do you have any advice on how I would be able to secure a job at a financial institution to get work experience when I don't have prior work experience within the industry?
2) Are there any courses that you would recommend for me to take besides the Certified Financial Planner course to help me become a better financial planner?
3) How did you know that financial planning was the right career for you?
A
1) There are many entry level positions available within the financial services industry. Many people new to the industry begin their careers either in a bank/brokerage house or with the large insurance carriers, like Freedom 55 Financial/London Life, Manulife or Sunlife/Clarica.
2) To actually become a CFP, which is a great goal, you need to have at least 2 years industry experience. When I first thought about the financial services industry I began with the Canadian Securities Course (CSC) and the Conduct and practices course, which gave me the necessary education and certificates to work with Mutual Funds and/or stock and bonds.
3) Financial planning offered everything in a career I was looking for.
- Flexible hours, the ability to work when and how I like.
- Relationship driven, working with people and families to help them achieve their goals.
- The ability to be my own boss. (this would not apply in the large banks)
- Huge income potential. Although it is important to note that the people who become very successful in this industry often work VERY long hours and it can be exceptionally difficult and trying at times.
Q
1) I am planning to take the course required to sit for the CFP Exam, and I was told that I wouldn’t be ready to take the exam until Nov 2007, will prospective employers still see me as an attractive hire if I don’t have the CFP designation?
2) Ultimately my goal is to be a CFP professional, but what other designations or certifications should I be working towards?
3) How important or necessary is it to have some type of university degree?
4) I have no problem with working hard and giving it my all, but I also want to have that balance between work and family, that is why I was thinking that working in the banking sector would be better than say and investment firm such as Berkshire or Investors Group. What is your take on that?
5) If I was planning to work with a bank, what type of job am I looking for? What would be the title of this job (assuming I’m still taking classes for my CFP designation)? What type of pay would this job offer?
6) What kind of pay do CFP professionals make? (at least on the average)
7) My end goal is to have my own business as a Certified Financial Planner, what steps should I be taking to get there and what pointers could you give me in reaching this goal?
A You are taking a great first step which is asking questions and doing your research!
I will try to answer your questions in order.
- you would have to be in the industry for at least 2 years before you can use the CFP designation, which is why they may have told you 2007. Most companies in the industry do not expect new people to have the CFP coming in, but they are certainly making it a priority to get it once working.
- the CSC, or Canadian securities course may be one worth looking into, although some companies will hire you with out it and pay for you to get it. The CSC is what you would need to buy/sell stocks, bonds and funds.
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not sure for the banks, at an IG or Berkshire type place not very.
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The banking sector should provide you with more 9 to 5 hours than working on your own at Berkshire or IG. Outside of the banks you can expect to work FULL days, from 8am to 9pm for at least the first 3 to 4 years until you become established. The big difference is that with the bank you are working on their clients for their book of business, the IG, Freedom 55 Financial or Berkshire route you are building your own business and book of clients.
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Sorry, not sure.
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An average CFP advisor can make anywhere from $20,000 annually to substantially more than $20,000 monthly. It all comes down to how hard you work and in which markets. A typical CFP professional would probably make around $80,000.
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this relates back to point 4, where if this is your goal you would be better off outside of the banking industry to build your own business from day one. This is MUCH harder than the bank because you need to find your own clients and people to deal w. this is going to be much more difficult for you because you will be new to the Ottawa area and I would assume not know many people. Having a good network of people to work with is crucial, or the ability to build that quickly.
Q
I am a CPA working at a big 4 accounting firm and am seriously considering transferring into a tax department so that I may get some client experience and pursue the CFP designation. Before I do this however I have several questions that I would like to know, and would appreciate your earnest responses.
1) Do you have to be a good salesman to be in this position; the thing is that I love working with numbers and people; I am a bit worried about my skills to continuously sell though?
2) Is there an opportunity to do other things with the CFP, or do you solely work with individual families. (i.e.can you help companies also)?
3) Compensation - I don't mean to be crude however I do have a family. Was wondering what you felt the starting salary was for people who have their CPA, CFP and some great tax experience?
A 1) No, you do not need to be a good sales person to be successful, because if the people have a need you are simply filling it. To be successful in this career you need to be an excellent prospector and have the ability to get in front of people on an ongoing basis. Once in front of them chances are they will have a need for something that you can provide, which of course does not require you sell them on the idea as they will already see the need with your help.
2) The majority of my business comes from companies, private and public, working with the owners, executives and employees helping them plan personally, corporately or bringing it all together for them.
3) Chances are you will start with little to no salary at all. With most financial services companies it is sink or swim, unless you work with in a bank, but then you will certainly be focused on the family market rather than the business market. There is a LOT of money to be made, but that goes hand in hand with hard work. I tell people I work half days, from 8 in the morning to 8 or 9 at night.
Good luck with your hunt for the right career fit, you are certainly started on the right track which is asking questions.
A I wholeheartedly agree with Peter's assessment re: sales skills. The more willing you are to get in front of people and tell them how you can be of help, the better. It becomes less of a sales pitch and more of a "how can we successfully work together?" discussion.
The bulk of my work is with individuals and families, although as evidenced by Peter's business, there is also money to be made in other areas. My feeling is the more that you can specialize within a certain type of target market/client, the better. For instance, a large part of my clients are employed or otherwise connected to the social services sector. My background with community mental health agencies and not-for-profit organizations has proven to be a solid fit with my client base as there are many issues to which I can better relate compared to a planner with no experience in this area.
With regards to compensation, I agree with Peter. Be prepared to start with little to nothing and to work your butt off to increase your earnings. Yes, it can be hard work, but it can also be very rewarding, on both a personal and financial level.
Q
I recently graduated from University with an M.A. in Economics. Now I'm looking for a job. Since I don't have a lot of experience, it is really hard to find something appropriate. How can I refer my education to any financial/banking career. I’m really interested in working in financial field but not having designations gives me very few chances. How can I launch my career path? Or what other positions might be considered in my career search?
A You are correct, it is difficult to do much in this industry without any designations.
Have you approached any banks/investment firms in regards to a position in their Economics department? These types of jobs would require solid analytical ability and effective writing skills, and you likely wouldn't need any other designations - although, they always help.
If you are resigned to the fact that you will probably have to start working on some designations, then the type of designation to get would depend upon what you're looking to do. If you'd like to work one-on-one with people and help manage their money for instance, then I would look at completing the Canadian Securities Course and then achieving your Certified Financial Planner designation.
Check out the Chartered Financial Analyst designation if you are looking to enter the realm of research, say, at a large bank or investment firm. Telling an interviewer that you are working on your CFA designation lets them know that you are not afraid of hard work and are serious about having a career in the financial industry.
Another way to enter the banking/finance system is to look at the training programs some of the large banks have, where you rotate from one area of the bank to the next, over a period of about two years or so. These positions are highly regarded by recent grads, etc. and as such are very competitive - but highly rewarding and very effective as a way to get to know how all the different areas of a big bank work.
At the very least, I would suggest completing the Canadian Securities Course. You will find the Economics section very easy - and the rest of the information is key to understanding the financial marketplace and how things work. As well, if you sign up for classes, etc. you're bound to meet other people looking to get ahead in the industry as well...they are often good sources of information re: job postings, contacts, etc.
A A degree in economics is going to be a great base to start your career in financial services. The next step that I took after graduating with a B.A. in Econ was to complete the Canadian Securities Course, which is applicable for many different careers in financial services.
There are many opportunities in this industry for new people with little to no work experience or designations. The key is to find a segment of the industry and then a company that you like. I would research three to four companies in the specific segment you like, put together a professional resume and cover letter for each and send it off. This is where many new graduates drop the ball; they do not call to follow up. It is imperative to demonstrate to that company that you are willing to work for that position, meaning you have to call them and you can not simply wait by the phone for them to call you. Follow up with the person once a week if you have to.
Designations are typically earned while working in the industry.
There are also a number of websites that will have multiple listings for entry level positions in the financial services industry, which is a good place to start your research.
Q
I am a professional accountant currently working in the manufacturing industry. I am considering a move into financial planning. How can I go about in obtaining the required 2 years related work experience while I am taking the courses and still working as an accountant? I am not keen on the option of having to pass first and then moving into the financial services industry for 2 years in order to be certified. My thought is to do be able to obtain some work related experience on a part-time basis during the duration of my studies. The objective is to reduce the duration required for designation.
A If you want to maintain your full time employment as an accountant while taking your CFP courses, your best option for getting some financial services related experience would be to become a life insurance agent. Some companies hire part time life insurance agents and once you get your life insurance license you can sell life insurance related products in the evening and on weekends on a part time basis while maintaining your day time job and the experience qualifies as financial services experience.
You can also apply for a job as a marketing assistant to a financial advisor and work in the evenings and on weekends and do marketing related duties.
I hope these ideas help.
Q
Do you think that the area of investment analyst (CFA) is extremely math-oriented and for math-heads? Is there much of that in the realm, your realm of a Certified Financial Planner?
A Becoming a CFA will equip you for assuming the role of an investment manager. However, investment is only one of the components of financial planning and you can be a very good CFP without necessarily knowing as much about investment management as a CFA does. As a financial planner you need a good knowledge of how different investments work but hardly as detailed a knowledge as a CFA possesses. You also need to be very math oriented to finish your CFA but not as much in order to become a CFP.
Q
Does financial planning strike you at all as being largely sales work? Or is does it feel much more like you are just helping people out?
A I would say it is both. You definitely need to be a good sales person to succeed but you also have to have a genuine concern for the financial well being of your clients and have to care for them and want to help them out. Financial planning is not about selling products, it is about providing solutions.
Q
Are folk ever hard to deal with - I mean rich and snobby, for example?
A You will come across all kinds of people in this business. The good thing is that you get to choose your clients as much as they get to choose you. If you don't enjoy working with some one you have no obligation to accept them as a client. You have to learn to say no.
Q
Do you think pursuing a CGA would complement financial planning, or is that often an unrelated field? I thought that, since I don't have a business degree, just a bachelor of arts, a certified accountant program could replace my lack of business education and then I could go on to get into finical planning or investment analysis.
A Pursuing a CGA degree will definitely complement your financial planning practice but again it is not essential. You will have to have a basic knowledge of taxation and tax planning as a CFP that does not need to be as detailed as the knowledge that a CGA or CA possesses. If I were you I wouldn't worry about your lack of business education. People from very different backgrounds become CFP professionals and the required courses will give you the knowledge with all the areas that you need to deal with as a CFP professional.
Q
I currently work in the investment industry and would like to make a switch to wealth management but I had a few questions first.
I am almost done my CFA designation. How useful is that for financial planners?
I have yet to obtain my financial planner designation. Can I apply and start working as a planner or do I first have to obtain my designation?
A Since you are already working in the investment industry, you have a good background to get started as a financial planner. Your CFA will of course be useful but is not essential to becoming a financial planner.
You can start working as a financial planner without your CFP designation and once you have at least two years of experience in the financial services industry (your experience in the investment field will count too), you can write the CFP Exam and become a CFP professional upon successful completion of the exam. I strongly encourage you to do that as the CFP designation will significantly increase your credibility with your clients.
A Congrats on your CFA designation. Certainly impressive and will definitely help you when you are making stock selections for your clients or when you are talking to investment suppliers.
You can start working as a planner without your CFP designation, but I highly encourage getting it. It is the best designation to have when doing financial planning and has the most credit in the industry for personal planning. The industry is not regulated so getting the CFP designation is the only way to show that you are regulated by Financial Planners Standards Council (FPSC) and showing your licence. However, you will need to get licensed for products (i.e. sell stocks, bonds, mutual funds, insurance) that you will be selling.
Depending on how you are going to do your courses (I.e. Advocis), it may take you 1-2 years to go through. Definitely worth it!
Q
I'm a 43 year old man with a wife and 2 children who is looking
for a career change. I'm interested in getting the CFP designation, (among
others) as I am very interested in the financial world, and also with
helping others achieve their financial goals. Until now, this has been
a hobby of mine. In the past 11 years, my wife and I have gone from virtually
$0 net worth, to over $500,000 (with half of that in investments). Given
my age, and the path of building experience and a client base, is this
a profession I should be considering? Do people enter this field later
in life, and if so, how do they find it? Obviously I want to make the
correct career change for myself and my family's future as well.
A I can't give any personal
relativity to your question since I am only 30 and got into this biz when
I was 23.. however, I will try to give a few thoughts.
Many people enter the financial planning world later in life, you are
not alone here (in fact a mid-life career change is the norm). Congrats
on your savings/investment accomplishments. If you and your family can
live okay on your $500k for a little bit (consider about getting $30k
without depleting any capital), then it is likely a good time to consider
making a move - I have no idea what your debt, cash flow, lifestyle expenses,
etc would be though. Getting your CFP designation is key, however, remember that it
takes a lot of courses and 2 years of work experience to get, also the
first year working is usually slow for most people (little income). Financial
planning is costs relatively little to start a practice - you will have
to consider if you want to be independent or link yourself to bigger firm...
I always STRESS the importance of VESTING (for some reason many financial
planners over-look this) - make sure that if you build your practice through
a bigger company that if you leave your clients stay with you.
My advice would be to interview a couple of financial planning firms (large
ones, smaller ones and talk to totally independent planners). There are
a few good financial forums coming up (the Ontario Sales Congress on March
26th) that you could attend and talk to people at.
The financial planning profession is growing again - many people dropped
out during the last 2 years when the markets declined, however I am expecting
a lot of people to join in again... however, there will be a huge wealth
transfer over the next 15 years (biggest by far in history) so it is a
good time to get in.
Q
I am a Canadian CA considering a career in financial planning
when I return to Canada. I am at the very pleminary stage of my investigation
so I was wondering if anyone could provide me with some guidance with
regards to potential employers and career paths. Also, I was wondering
if someone could describe for me the type of work that a financial planner
may do. I was hoping to land a job as a financial planner based on my
CA credentials and then obtain my CFP designation as I worked. Is this
realistic?
A You have a great background
for becoming a financial planner. You will definitely have no problem
with the technical aspects of the job, however, you also need people skills
and sales skills. As a requirement for becoming a CFP professional you need two years
of experience in the financial services industry, therefore you cannot
set up your financial planning practice as a CFP professional right away. Although
at this point there is nothing to stop you legally from calling yourself
a financial planner without obtaining your CFP designation, yet if you are not going
to sell any products and want to charge a fee for your services, the CFP
designation can give you great credibility.
To answer your second question, To provide clients loans,
insurance products, or manage their investments you will need to be licensed
in each area. You will need to contact the relevant licensing bodies to
obtain each license and in each case you will need to be sponsored by
an industry member, which may mean that you will have to be employed at
least initially by that firm, although with regards to a license for selling
mutual funds or securities a condition for maintaining your license is
that your license be sponsored by a mutual fund dealer or securities dealer
at all times.
A Getting your CFP credential is a great route of building up your credibility and resume.
For sure you can use your tax knowledge to better your financial
planning abilities.. as you know, a lot of financial planning is based
on tax.
The best route may to be to work for someone else who can
provide you with clients (I.e. banks, etc) .... at least this way you
can concentrate on learning the business instead of having to attract
new clients. The problem with this is that if you ever leave, your clients/relationships
stay with the bank. Another route is to work for a financial planning
centre but you get your own clients. If you go this route, MAKE SURE that
there isn't any non-competition jazz in the contract and if you leave,
you can take your clients with you.
CA's used to be able to just write the CFP Examination without
taking all the courses but I'm not sure if this still exists today...
(best to call FPSC).
Q
I am a Certified Management Accountant with close to 10 years
accounting experience in a manufacturing environment. I would like to
obtain the CFP designation through the 'Challenge Status Requirements.'
I understand that I require three years experience in a financial planning
environment. If I changed employers and worked in the finance/accounting
department of a financial planning/services company would this qualify
for the three year experience requirement? Could you provide me with the
best approach to switching careers and obtaining my CFP designation?
A You have a great background
for becoming a financial planner. You will definitely have no problem
with the technical aspects of the job, however, you also need people skills
and sales skills. As a requirement for becoming a CFP professional, you need two years
of experience in the financial services industry, therefore you cannot
set up your financial planning practice as a CFP professional right away. Although
at this point there is nothing to stop you legally from calling yourself
a financial planner without obtaining your CFP credential, yet if you are not going
to sell any products and want to charge a fee for your services, the CFP
designation can give you great credibility.
To answer your second question, To provide clients loans,
insurance products, or manage their investments you will need to be licensed
in each area. You will need to contact the relevant licensing bodies to
obtain each license and in each case you will need to be sponsored by
an industry member, which may mean that you will have to be employed at
least initially by that firm, although with regards to a license for selling
mutual funds or securities a condition for maintaining your license is
that your license be sponsored by a mutual fund dealer or securities dealer
at all times.
A Good luck with your
possible carrier change. First of all, you are doing the right thing by
getting your CFP designation first. When you open up your own busines you will be
much more credible.
Biggest problem is likely to be finding enough clients. There
are thousands of planners/banks/etc out there so it is hard at first to
build up your reputation.
You can do loans, financial products, planning, insurance.
You will need to get your insurance licence (includes an exam). You can
call the Superintendent of Insurance for this - or call Advocis (volunteer
assoc. for insurance agents at 416-444-5451) and ask how to get your insurance
licence. You also have to get your securities licence or IFIC licence
to sell mutual funds. Also, if you want to sell labour sponsored funds,
you will have to get a licence for that too.
The best thing to do is sit down with a friend/colleague
who is a financial planner on their own, explain the route that you want
to go and have him/her explain what is required on your side to do.
Q
At age 50, I am considering a career change from the software
industry into the financial industry as a sales associate for Prudential
Financial. Before I make the plunge, is there anything I should watch
out for?
A You have made a very
good choice. Generally life insurance companies are a great place to start
a financial planning career. My advice would be to make sure that you
will get sufficient training and attention from your manager to lay the
foundation for building a strong practice.
A I would recommend that
you plan out a 'worse case scenario' as far as cash flow is concerned.
Prudential might set up a 'draw system' which will help.
Look at if you don't make any sales for the first 2 months, how will that
affect your financial picture.. What if you only do 1/2 of what your manager
expects that you will do. Also in this, if things don't work out after
1 year, what else would you like to do.
Also, be prepared for negative energy from people who might see you as
an insruance guy... (talking from experience on my first year in the business).
It is tough on your ego. Don't let the negative energy bother you, as
long as you are looking after the best interest of your clients - you
are doing a good thing.
As long as you don't go bankrupt (of course), I think that you have to
give the business at least 1 full year to give it a fair chance. It is
great career, but most people drop out before the 1 year is up... Further,
I think only 5% last after 5 years (it only gets easier).
Q
I'm interested in becoming a financial planner, and therefore,
investigating online and self-study education as preparation for the CFP
Exam. My work experience is not in the financial area for the most part,
though I have an MBA in Finance. Before making this career change, I'd
need to understand the industry a little better-- so here's my questions.
- Assuming that I fulfill the educational requirements
and pass the CFP Exam, can I then start my own business as a financial
planner? I'm looking to start my own business as opposed to selling,
say, an insurance product. And if I can to this, what's the biggest
problem I'm likely to encounter?
- As a Candidate for CFP Certiification can I effectively
provide financial planning services to clients? To provide clients loans,
insurance products, or manage their investments, do I have to be licensed
in these areas? If so, what this involve?
A Great questions, very
insightful.
- Yes you can start your own business as a financial planner.
However, I can't emphasize enough the importance of the CFP designation
when trying to brand yourself as a professional. Unfortunately, in most
provinces, the only thing you need to hold yourself out as a "Financial
Planner" is the shingle saying "Financial Planner." Having the CFP designation distinguishes
yourself from all the pretenders. The biggest hurdle you may encounter
is getting clients. There are a lot of good, qualified people in the
financial services business, and a lot of them have the CFP credential or are working
towards it because of the aforementioned reasons. You will have to market
yourself and your services and whether you are aware of it or not you
will have to "sell" maybe not product but at the very least your desire
to charge an hourly rate or flat fee.
- As I stated above, pretty much anybody can call themselves
a "Financial Planner." Yes, you will have to be licensed in these areas.
What would be involved would depend on what Province you live in. For
Life Insurance I believe most Provinces require you to take, complete,
and pass the Life Licensing Qualification Program (LLQP) before you
are eligible to write the applicable provincial licensing Exam. For
Mutual Funds you would have to pass the Licensing course and the applicable
provincial licensing exam. You should check out the following websites:
www.advocis.ca
www.ific.ca
www.cfp-ca.org
A Here are my answers
to the questions posed:
- You have a very good background for someone who wants
to become a financial planner. Although you say you don't have much
work related experience in this field as part of the requirements of
obtaining your CFP designation you have to have two years of industry
experience. I imagine this could be in the sales or service area. Theoretically
you could set up your own practice once you get your CFP designation.
Your biggest challenge though would be getting clients and charging
fees. You will have a much easier time making money in the early years
of your career selling products, unless you start your business by buying
a book of business.
- If you live in Ontario you could give financial planning
advice even without a CFP designation. However the CFP designation would
give you much more credibility and would allow you to bill clients for
your services much more easily. The other thing you have to be wary
of is the issue of liability. As a professional working in this field
I would not dispense advice or recommend any product without having
proper errors and omissions insurance. With regards to selling securities,
insurance products or mortgages you need to be licensed by the relevant
governing bodies. For securities and mutual funds your license has to
be sponsored by a dealer and for life insurance in the first two years
your license has to be sponsored by a life insurance company but after
that you can become a Level II agent and won't need sponsorship any
more.
A The biggest problem
is having enough people to talk to.. the first year bites. If you are
like how I was, you will work about 70 hrs/week and not do too much actual
planning. That is why many people start off working for a brokerage house
or bank that supplies the clients (but then you aren't building your own
practice). However, it gets easier each year as people see that you are
sticking through it.
Second to not making enough dough is having your ego crushed on a constant
basis! But stick with it, it is well worth it...
You have to be separately licensed in Ontario with the Securities and
the Insurance Commission... you have to pass your CSC or Mutual funds
exam to sell mutual funds and your Life ins. exam to sell life, disability,
health or segregated funds... also of course there is in an annual fee
and you have to have E/O (Errors and Ommission) insurance (but just one
will do if it covers both financial and insurance planning).
I don't want to sound too pesimistic... I love the career, freedom, flexibility,
income, etc... it usually just takes a few years to get the ball rolling..
not too many people stick with it for more than a few years.. but hey,
if it was that easy, everyone would be doing it.
Q
What is the chance for me, a person who has no experience
in financial industry, to land a Financial Planner job by passing the
CFP Examination? And, is age a factor?
A Age isn't a factor
at all.. In fact, I find being so young has been my edge. The CFP designation
is mint helping you find a job, but it isn't the only thing, you also
have to have a good personality, willingness to learn and being able work
well with others, to name a few.
A Age is a state of mind,
not physical conditions. If you are serious about entering this profession
there are number of routes to follow. You can study, pass the CFP Examination, and
hang out your own shingle. You can join a bank. You can join a large Investment
House. You can work for a fraternal organization offering PFP services
directly to their members. There are a multitude of directions you can
take, some requiring more study, licensing, and/or training. And some
requiring very little.
Do your own market research Study. Where is your geographic area? Look
in the yellow pages under "Financial Planners," "Insurance," and/or "Investments."
Are there any Advisors with CFP after their names?
Age in this business is a double edged sword; If your young you can come
across as educated, ambitious, eager to get ahead by doing the right thing
for your client. If your of the more mature stage of life, as I am slowly
entering, you can be more empathetic to clients situations because you
may have already passed through those life cycles. You come across as
someone mature, respected, and worth listening to. Your peer group, your
natural market, will be of the High Net Worth variety, always ideal clients.
Change is as good as a vacation.
A I think age is a great
asset when it comes to being a financial planner. Think about it, if you
had to choose among two financial planners who were new in the industry
who would you trust more with your own money, a 21 year old college graduate
or a 40 or 50 or 60 year old financial planner? I would certainly choose
the older one. Plus when you are older most people assume that you have
been in this business for a while and the question of length of your experience
in this field may rarely come up. So, assuming that you are an older person,
I would say don't worry about your age at all and go for it. Time is on
your side. On the other hand if you are very young, you can have good
rapport with younger clients and grow with them, so again it should not
deter you from being successful in this field.
A CFP designation is a great asset in this industry but experience is
a great asset too and you should get started first at an entry level job,
as an assistant to a established planner or in sales (insurance or mutual
funds) in order to gather experience and study for your CFP designation
at the same time.
Q
I have an interest in the financial planning industry, but
I have no experience. I have a B.A. in Economics, but I have had no specific
training towards obtaining my CFP designation. If I decide to move forward, I will
take an online course that is endorsed by FPSC and try to pass the
exam.
I'm interested in becoming a financial planner, but I don't want to be
a stock pusher or a front person that merely sells the products that somebody
else recommends. I would like to find a position where I can help people
put together comprehensive plans to accomplish their goals. I realize
that I may have to pay my dues first, but how do I find a true financial
planner job or an entry-level position that will prepare me for one?
A I think you have a very
noble goal. I agree with your ambitions and try to run my practice the
same way. I agree wholeheartedly that getting your CFP designation will put you in
the right spot as a financial planner rather than a 'stock-pusher.' Until
your assets under management become high enough that you can make a living
from your trailers, I believe that you will have to get a job somewhere
for a salary (so you don't have to make transactions to earn a living
- which is what I think you are trying to get a way from). I would advise
perhaps finding a planner who has been in the business for a while and
taking over working with some of his/her clients (a lot of planners have
junior planners to help) or working for a bank. The downside of this approach
is often when you leave, you have to leave all the clients behind (unless
you work out your exit strategy from the beginning). Nonetheless, it could
help you learn about the business and how to grow your practice.
A Good question and I'll
try to answer it as best I can, but please keep in mind my views are based
on my experience and education here in Canada. Although in the USA it
may be possible to take an online course and challenge the exam that leads
to the CFP certification, I would personally not recommend this route.
In Canada if you hold a certain Degree, Law and Accounting for example,
you are allowed to challenge for the CFP designation. If you hold the
Personal Financial Planner (PFP) from the Canadian Bankers Association
your are also allowed to challenge, but recently news has leaked out that
the Canadian Bankers Association is re-joining the CFP world and may abandon
its PFP designation. The point I'm trying to make is that a person who
takes the six pre-requisite courses, and passes the national certification
exam, will always come off as the more commensurate professional as opposed
to someone who challenged the exam and may have just got "lucky" and passed.
I response to the second part of your question you'll have
to do some field and leg work I'm afraid. The Financial Planning profession
is still relatively young. I hold the CFP designation and am also licensed to sell
Life insurance and Mutual Funds. I am independent, meaning I'm not an
Agent for any one particular company or employer. Based on your concerns
I would recommend you look for an organization that deals with a number
of life insurance companies as product suppliers and perhaps the same
company would also be a Fund Dealer. Don't be afraid to "interview" them
first. How seriously do they take continuing education? Do they recognize
the CFP certification? Do they require it? My Dealer does, and that's quite comforting
to me. Your local geography and economy will also dictate which avenue
would be most realistic for you to pursue. Where I practice I have to
be able to sell the insurance and investment products my clients desire
because I could not make a living on just "Fee for service" financial
planning. But if I lived in a large Metropolitan area with millions of
people I believe I could make quite a good living just doing "Fee for
service" financial planning. Look in your local Yellow Pages under Financial
Planners. Are there any? What details do they give in their ads? Do they
hold the CFP designation or do they call themselves "Financial Planners," "Financial
Advisors," etc. Are they all independent firms/individuals, or are the
all National name brand companies? Or a mixture of both? Perhaps you'll
want to do an informal market study.
If you do your due diligence in searching out a suitable
company you'll enjoy an long a profitable, professional career as a CFP.
Q Is
age a barrier to starting a career as a financial planner? I expect to
retire from my current job within 10 years and am considering financial
planning as a second career.
A I think age is a great
asset when it comes to being a financial planner. Think about it, if you
had to choose among two financial planners who were new in the industry
who would you trust more with your own money, a 21 year old college graduate
or a 40 or 50 or 60 year old financial planner? I would certainly choose
the older one. Plus when you are older most people assume that you have
been in this business for a while and the question of length of your experience
in this field may rarely come up. So I would say don't worry about your
age at all and go for it. Time is on your side.
A Definitely not!
Being more "seasoned" may actually work in your favour as
you would be better able to empathize with potential clients because you
have already passed through the main "Life Cycles" especially the hard
ones. You would definitely have more credibility with your potential clients.
The beauty of our industry is that there is no "normal" retirement age.
You can certainly slow down, work a few days a week, or be very selective
on the types of clients you take on. I personally know a number of people
working in our industry while in their 60's, 70's, and even one gentleman
in his 80's! He recently purchased a notebook computer to help his clients
with their retirement planning.
You also have the benefit of taking the CFP courses at
your leisure, focusing on each with your full attention, and who knows,
you may enjoy it so much you'll try and get an early retirement package!
Your age is not a barrier, if anything it would be an advantage.
Age is a state of mind.
Q I
am presently living in the United States and planning to migrate to Canada
next year. I have been trying to get into the financial industry for a
while now and I'm really interested in financial planning. I have 2 questions:
1. Do you think working towards my CFP designation would open doors for me in the
industry? I have an MBA and concerntrated in finance but still have no
experience.
2. Should I be working toward taking the United States CFP Examination
or the Canadian one?
A 1- I think the CFP designation
would be a great help towards your career as a financial planner and would
give you a lot of credibility with potential clients. However, you should
try and enter the industry as soon as possible and study towards your
CFP designation while you are gaining experience in the industry. You can have a collection
of designations in financial planning but with no experience you will
have a tougher time finding a job. Plus as far as the Canadian CFP designation
goes, my understanding is that you need two years of industry experience
to qualify for the designation.
2- It really depends on where you want to work. Of course, if you want
to become an expert on cross border issues, I guess both designations
could help. However, if you want to live and work in Canada the Canadian
CFP designation should be enough.
A If you plan to be in
direct sales, or one-on-one Financial Planning with individual clients,
then YES, the CFP designation is the route to go. Although your MBA gives you a great
academic background, the CFP designation, gives you a more practical, reality vs.
theory grounding for this industry.
If your plan is to definitely emigrate to Canada, then I would recommend
taking the Canadian version of CFP designation from one of the approved providers
listed on the FPSC website. I believe that any potential employer would
look upon a Canadian CFP designation more favourably than the U.S.
Q
I am seriously considering a career in financial advising.
I only have a diploma in Legal Secretary studies. Being from Southern
Ontario, do you suggest a BA/MBA or is a CFP certificate sufficient? I
eventually would like to run my own company helping individuals with there
budgets/investments.
A I think a CFP designation
is enough. Although a BA/MBA would give you a greater educational background,
it will hardly help you as much as the CFP designation would when it comes
to your professional career. I have a BA and an MA and right now my firm
doesn't even allow me to put all of my designations/degrees on my business
card as I can only choose 3 designations on the card and I think CFP,
CLU and CH.F.C. would be more relevant than my other designations/degrees.
A Good to hear that you
are looking around and seeking advice early.
I have found that to be a successful president/owner of a
company, you should have a clear vision of what you want your company
to stand for. In your situation, I think that obtaining the CFP designation
and knowing how to do proficient financial planning is essential in running
a financial planning firm.
You could begin your career by doing planning at another
company that maintains the same values you intend your own company to
have. This will provide you with experience and assist you in the transition
to opening your own company. I highly advise working for a place that
grants you immediate 'vesting' (client relationship and commissions are
guaranteed to stay with you from day one, in other words, the client relationship
you have established will continue to grant you commission even when you
leave the company). Opening a planning firm is also great because it doesn't
cost much.
Many financial planners who run their own company are successful
without a BA/MBA. I recommend a CFP designation as the foundation for
your knowledge, however, as with most things in life, what you learn is
on the job. My advice would be to start working for someone else as a
planner and learn from their successes/failures. I can't stress getting
'vesting' of your clients and commissions from day one though.
I am a big fan of continuing education and may even pursue
my own MBA part-time. I encourage you to start working and gaining experience,
and then pursue further education throughout your career.
A If it is your intention
to advise people on their budgets/investments then you cannot overlook
obtaining the CFP designation. I have been in the "business" for over
10 years and until I became a CFP professional, I realized how important it
was to the public's perception that they deal with a qualified planner.
Please keep in mind that the CFP designation is "more" than
letters after your name. It is a licence that one must obtain through
the 4E's; education, examination, experience and abide by a code of ethics.
In order to renew the licence, one must complete continuing education
requirements that are on par with any other profession such as a CA. The
CFP designation puts you head and shoulders above anyone else offering
financial planning services to the public. It is the trademark of a serious,
full-time, professional.
Q What
is the difference between a CFA and a CFP designation and why should I
opt for one versus the other?
A The CFA designation
focuses on investments and is suitable for analytical and research oriented
individuals who want to pursue a career in a corporate environment and
are interested in portfolio management, whereas a CFP designation is more
broad based and covers investments as well as estate planning, retirement
planning, and personal financial planning and is more suitable for individuals
who have good people skills and enjoy helping others and interacting with
clients. Also with the CFP designation you have a choice of working for
banks and big brokerages or being an independent practitioner and having
your own business.
Q
As a Certified Financial Planner professional, do you only focus on the
sale of investments, mutual funds, etc.?
A When I do a financial
plan for people, I look at their life insurance needs, retirement needs,
children's education needs, etc. When I start developing the Big Picture
for them, I also start to help them prioritize their situation. Most people
cannot afford to implement every solution that I develop for their unique
situation. Therefore, some choices usually have to be made as to which
solutions we're going to implement immediately and which we will look
at down the road.
Q
What is the most important thing you can do to be a good advisor?
A Give back to the industry
and the community as much as you can. Be involved and try new things,
don't let other people put limits or expectations on you. Remain flexible
and open to new ideas. As a young planner, this is totally our advantage.
Also, get as much education/courses/designations early in the game.
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