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Mar 22, 2010 10:14 am

Greetings RR,

I have been lurking the forums for a bit now and wanted to post.  I've been in the banking industry for 3 years and currently studying for the CFP exam.  I was seeking a CFP assistant/Associate position here in NY with no luck in the past months (it's non-existant).

So there is one other way to start, which is to break into the advising world.  I have read mixed reviews on where I should start.  I have no rich friends, no rich family, but I do have experience in financial consulting (3 years).  I'm currently at a bank, and the model has switched so much that it's hard to discuss about investments.  The company wants us to sell widgets (checking, savings, debit cards) and I feel that professionally, I have stopped growing and learning.  The only reason I'm still here is for a paycheck.  I want to be like you guys, start a business and potentially grow into something wonderful. 

Would you guys recommend a wirehouse, B/D or a RIA.  I've looked into FPA website for positions, there is none in NY for the past few months.  I'm leaning more towards RIA so I can participate in client meetings with a mentor.

I'm looking to get into Financial Planning field rather than Investment Advising.  If you guys can input your 2 cents, it would make a difference in my life!

Thank you for taking your time to read this.

NewRR. 

Mar 22, 2010 2:51 pm

With no disrespect RR, you are aware that there are big income differences between being an advisor and a planner?  Not saying one is right or wrong, just different.

Aside from that question, can you move to a FA role in the bank?  Not your end game, but a possible stepping stone to keep up your learning curve.

Mar 23, 2010 5:10 am

Simple question.  Anyone know of a standalong Pension max software package and instructions.  Don't mean a major financial planning software bundle-just a POS program with instructions and theory

Mar 23, 2010 9:19 am

I would suggest a planning or para-planning role at a larger RIA in the NY area.  It might not have a huge starting salary, but it could get your foot in the door, and get you used to working with clients in a planning capacity.  The next step would be a BIG step - actually prospecting for your OWN clients ("eat what you kill").  The first option may be the "safer" option if you must have the steady paycheck initially.

For those reasons, I would not suggest a B/D or wirehouse (unless the indy B/D is planning focused).

Mar 23, 2010 9:42 am

[quote=Roxie]

With no disrespect RR, you are aware that there are big income differences between being an advisor and a planner?  Not saying one is right or wrong, just different.

Aside from that question, can you move to a FA role in the bank?  Not your end game, but a possible stepping stone to keep up your learning curve.

[/quote]

I'm aware of the difference in compensation between the two.  I'm more interested in a holistic approach of Financial Planning.  I don't want to just give recommendation, I also like the technical side of the business. 

I was offered the FA position a few times at my current firm but declined due to being comission only and I know for the first few years, I will make significantly less than I'm making now.  I just was not ready to make that kind of move yet...financially did not make sense for me.

I started to look at Mass Mutual's general agents in NYC.  Does anyone have any experience with General Agencies? 

Mar 23, 2010 9:44 am

[quote=B24]

I would suggest a planning or para-planning role at a larger RIA in the NY area.  It might not have a huge starting salary, but it could get your foot in the door, and get you used to working with clients in a planning capacity.  The next step would be a BIG step - actually prospecting for your OWN clients ("eat what you kill").  The first option may be the "safer" option if you must have the steady paycheck initially.

For those reasons, I would not suggest a B/D or wirehouse (unless the indy B/D is planning focused).

[/quote]

I'm having a tough time finding any of these...looks like my search engine skills need a bit of a boost.  This may sound like a stupid question but where would be the best place start seeking for these positions? 

Mar 23, 2010 10:19 am

RIAs can be found by using...

http://www.investmentadvisorsearch.com/

Investment Advisor Search is a compilation of SEC registered investment advisors and their relevant information from FORM ADV. View over 29,000 investment advisor firms sorted by name, by state and by assets under management.

Mar 23, 2010 11:12 am

[quote=newregrep]

[quote=B24]

I would suggest a planning or para-planning role at a larger RIA in the NY area.  It might not have a huge starting salary, but it could get your foot in the door, and get you used to working with clients in a planning capacity.  The next step would be a BIG step - actually prospecting for your OWN clients ("eat what you kill").  The first option may be the "safer" option if you must have the steady paycheck initially.

For those reasons, I would not suggest a B/D or wirehouse (unless the indy B/D is planning focused).

[/quote]

Try the link ND posted above, and call unsolicited.  Most of the time, firms don't post jobs (especially right now), but if you call around, you may get lucky and someone has been "thinking" about hiring someone (or thinking about "replacing" someone), but it never makes it to the "big boards".  Job searches through search sites is usually fruitless, since you have thousands of people applying for these jobs.  And I am guessing that financial jobs in NYC are a scarce commodity right now .

I'm having a tough time finding any of these...looks like my search engine skills need a bit of a boost.  This may sound like a stupid question but where would be the best place start seeking for these positions? 

[/quote]

Mar 23, 2010 11:57 am

[quote=Roxie]

With no disrespect RR, you are aware that there are big income differences between being an advisor and a planner?  Not saying one is right or wrong, just different.

Aside from that question, can you move to a FA role in the bank?  Not your end game, but a possible stepping stone to keep up your learning curve.

[/quote]

Only if you are charging planning fees only.  More and more "planners" are also charging AUM%.  More and more reps are offering planning.  The two sides are growing into each other, and may soon become interchangeable.

Mar 23, 2010 12:51 pm

Planning can be incorporated as a % of AUM in addition to the investment management. But as far as I am aware the planning fee, either way, cannot overlap the fee to manage assets. You should be able to enter into a planning relationship in any area besides Investment Planning which is already part of the AUM fee.

So if you already have a 1% AUM relationship and would like to add planning, you can bump it up 1.xx% and deliver value on non-investment related goals.

Mar 23, 2010 1:29 pm

I know what some new "planners" do is offer "planning" for a fee in addition to asset management (AUM fee) while they are building their book.  Once their AUM fees are sustainable, many back off the "planning" aspect of the business (too much time for too little money) and only accept asset management clients.  This is probably a wise move, especially if you have your CFP.  You could manage to scrape together a few plans a month and earn a few thousand doing that, then continue adding assets.

Mar 23, 2010 2:19 pm

[quote=B24]

I know what some new "planners" do is offer "planning" for a fee in addition to asset management (AUM fee) while they are building their book.  Once their AUM fees are sustainable, many back off the "planning" aspect of the business (too much time for too little money) and only accept asset management clients.  This is probably a wise move, especially if you have your CFP.  You could manage to scrape together a few plans a month and earn a few thousand doing that, then continue adding assets.

[/quote]

Don't Ameriprise reps charge for their plans?

Mar 23, 2010 3:39 pm

Ameriprise Financial charges clients a flat annual fee for an on-going planning relationship. This fee varies based on advisor experience, certifications, and the complexity of the given client's service needs. Ameriprise Financial and its advisors receive commissions when they sell their clients mutual funds, annuities, insurance, and various other investment products. Financial planning services and investment products purchased through 'managed accounts' are not assessed a commission but rather are fee-based.

Mar 24, 2010 9:00 am

[quote=B24]

[quote=newregrep]

[quote=B24]

I would suggest a planning or para-planning role at a larger RIA in the NY area.  It might not have a huge starting salary, but it could get your foot in the door, and get you used to working with clients in a planning capacity.  The next step would be a BIG step - actually prospecting for your OWN clients ("eat what you kill").  The first option may be the "safer" option if you must have the steady paycheck initially.

For those reasons, I would not suggest a B/D or wirehouse (unless the indy B/D is planning focused).

[/quote]

Try the link ND posted above, and call unsolicited.  Most of the time, firms don't post jobs (especially right now), but if you call around, you may get lucky and someone has been "thinking" about hiring someone (or thinking about "replacing" someone), but it never makes it to the "big boards".  Job searches through search sites is usually fruitless, since you have thousands of people applying for these jobs.  And I am guessing that financial jobs in NYC are a scarce commodity right now .

I'm having a tough time finding any of these...looks like my search engine skills need a bit of a boost.  This may sound like a stupid question but where would be the best place start seeking for these positions? 

[/quote]

[/quote]

Yeah I've searched everywhere including my FPA chapter and there was about 9 jobs in total in the entire USA as a para planner.  what is going on?!?!

So I'll be dialing these RIA on the list, asking them if they offer planning and if they do, can they use a para planner to help their practice.  I'll be calling on my lunch break. 

Mar 24, 2010 4:37 pm

no luck, out of the RIA very few offered financial planning and are not looking to hire any time soon.  Very disappointing. 

Mar 24, 2010 6:01 pm

I hope that is not the way you respond to a no on the phone when cold calling! You will never make it....

You should call, offer to buy lunch and tell the big guy face to face how you plan to make him money and not cost him money. Most business owners will respond better when you are there laying it all out on the table. A phone call thrown out there off the hip is guaranteed to get shot down.

Mar 24, 2010 6:17 pm

[quote=N.D.]

I hope that is not the way you respond to a no on the phone when cold calling! You will never make it....

You should call, offer to buy lunch and tell the big guy face to face how you plan to make him money and not cost him money. Most business owners will respond better when you are there laying it all out on the table. A phone call thrown out there off the hip is guaranteed to get shot down.

[/quote]

Haha, When I cold call, I always try to disqualify them first.  After 3 no's I usually say "thank you for your time" and call them back a month later.

I did speak with a Planner but his practice was far and he was not willing to offer any type of salary.  I was sorting through some General Agents of Mass Mutual and it seems like all of them are planning firms.  Should I give these a shot?

Mar 25, 2010 9:22 am

OK, let's be clear on insurance companies masquerading as "planning" companies....they put together a "plan", then recommend life insurance and annuities.  I'm not saying those are bad products, but I think the "planning" component is just a cover for what they really want to do....sell you insurance products.  It's just a little disingenuous.

And that's not to say that all insurance-based "planners" operate this way, but it is certainly what I have witnessed.

Mar 25, 2010 10:30 am

B24 is spot on here.  Among my travels I get to meet a lot of  "insurance" people who tout financial plans and profiles.  Okay, fine.  There is a place and a need for that, but their pitch tends to blur the lines.

Mar 25, 2010 4:07 pm

Newregrep, how do your planning abilities beat plugging numbers into a software program?  Unless there is something special about your knowledge set, you simply don't bring much value to the table over someone who has some data entry skills.

You can do planning at an insurance company and get paid for it.   It can even be the focus of your practice.  However, if you make $1,000,000 in planning fees, you'll still be terminated if you can't do enough insurance business to maintain your contract. 

Keep in mind that financial plans are unimportant.  Getting people to take action on financial plans is how you help people.