I just graduated from college in May with a finance degree. I’ve started working with a financial advisor who has been in the industry for 25 years and just broke away from a large firm to start his own independent firm. As of now I am an associate helping him build the business. The only problem is that I’m doing more of a sales role which I didn’t think I was going to be doing as much of. I want to have more of a research role and idealy have an analyst position somewhere.
So my question is do I stay here, help him build the business for a couple of year and then move on to try to get more of a research role? or do I start looking for a new place now? Also, how tough would it be to make that transition if I were to stay here? The experience and work doesn’t seem to over lap much.
Retail and research are two very different creatures, and never the twain shall meet.
And to be honest, I was in your shoes several years ago. I went back to get an MBA and finished the CFA, thinking that would land me a research role somewhere–it didn’t.
If I were you, and I really really wanted to do research rather than retail, I’d try to get there as quick as I can. The longer you stay in retail, the more you’ll be pigeonholed into it.
All that being said–I’m not so sure that retail isn’t a good place to be. If the guy is willing to make you a minority owner, then you could have greater potential in the retail space than as an analyst.
Working as a research analyst versus a FA are too very different roles. I’m not sure why you took this job, but the fact is that as a FA, you have two basic tasks: bring in new assets and service your existing clients and help them grow and preserve wealth over time. This will include financial planning, most of which you will acquire through work experience and taking additional courses. I would recommend completing the CFP if in fact you like the FA role.
Unforuntately the CFA isn’t as well known to most retail clients. It will help you manage their investments, but depending on the senior advisors investment philosophy, you would most likely just be using a managed solution or MF.
If you find after some time you don’t like the FA role, then I would suggest that you try to find a role as an Analyst in research etc. However, from what I read on AF, these jobs seem to be tougher and tougher to find.
As a FA, you are your own boss, own your own business, and in the U.S., most advisors are Fee Based which gives you control over your compensation and scope of services you provide. (Being your own boss is really awesome).
(I work as a FA; my branch manager has a pool in his house. Its ridiculous, its like out of a movie).
Given the age difference between you and the senior advisor, there may be a succession planning opportunity for you as well. Not a bad gig, if you handle it properly.
sorry to say you fell for the old “financial advisor” job gag. All these jobs are just sales roles where you try to push these life insurance/equity plans onto people. I agree with above 2 guys, it’s very different from the path you want to take, and I would suggest tryign to get out.
I disagree that it is a bad job. I’m not sure what kind of place it is, if it is a fee-based RIA rather than a guy selling investments, it can be very lucrative.
Yes Fee based is where the advisor charges a percentage of AUM (or flat fee) to manage the investments and provide planning serivces. This would include IM, insurance needs analysis, retirement planning, debt planning, estate planning etc.
Your revenue is more stable and provides better transparency on cost of service for the client.
^ I will agree, since like nearly all jobs, the top few % are great and make big $. Unfortunately, it’s also true that most beginning folks are all nothing more then insurance salesman, and it’s far from what people expect in terms of being a “financial analyst”. ALso, the vast majority drop out since they can’t meet their quota after they exhausted their supply of friends/relatives to sell to. Hence why people sometimes refer to them as “chop shops”. And not to mention that many of top % don’t start off as junior salesman. The really big shot “financial advisors” were usually folks working on the buyside managing institutinoal money, etc with numerious contacts already in place, and all they needed was a platform to do their business and officialy be a “financial advisor”.
If you feel that this is 100% your calling, sure, stay in it. I hear you make tons of money if your daddy’s a lawyer and your uncle lives on the golf course.
If you are at all lying to your self, telling yourself that you are out there to help your clients, you’re there to help people reach their goals, or you have any aspirations beyond being a glorified insurance agent, get OUT. Cut your losses early. I don’t know what your pay structure is–mine was 100% commission (though I was told I’d be paid a salary)–but I’ve heard rumours that at some shops if you don’t hit a quota you owe BACK what you were paid as a salary…
I’ve been trying to transition from that FA role to a more quantitative role, and it’s exceedingly difficult. I think I might have gotten at least a toe in the door by leveraging my language skills into a PE firm that invests solely in Asia, but it’s a support role (I haven’t signed anything yet though). I don’t have the most stellar resume, maybe you might have more luck, I don’t know, but the interviews I have gotten for positions that I’m truly interested in, the recruiters are just bewildered–why were you an FA? Why do you want to work as an analyst?
I’m looking forward to the day where I have other experience so I can take those days as an FA completely off my record.
Though, of course, if you like it, stay. It’s your choice. But it’s really a lifestyle I think. If you don’t believe in it 100%, you’re going to make yourself miserable. And your friends and family too, because you’re bound to try and sell whole lifes to them and open up Roths for your 23 yrold friends.
FA’s that hire you telling you it’s not a sales role, are 95% of the time, lying. The other 5% of the time they aren’t, because it’s an admin role.
If you think you are in the top 10% of salespeople out there, it will be a good gig, good hours, and high rewards. If you already have doubts about deviating from your life path, get out of there now.