Best path college grad
Wondering what is the best path for getting in the business as a 22 year old fresh college grad. I know very few wealthy people and would be starting completely from scratch. Is it possible to start out this young and inexperienced or should I be working somewhere else in the industry and transition over when I'm closer to 30 years old.
You can get into this business right out of college. Most firms prefer that financial advisors enter the business as a second career, preferably starting in sales, but every firm is different. The good news is that the industry is getting very old, so younger people that enter financial services have a very bright future with a lot of the competition retiring. Consider applying at established firms that are looking for junior partners or possible succession plans. Do not expect to make a ton of money out of the gates until you prove your worth. A number of colleges are now offering financial planning as a major and most students have jobs lined up when they graduate. Look to established RIA's or independent broker/dealers. CAll locally and speak to a few established firms about your goals.
Getting into a bank training program for financial advisors is also a nice career path. It might be tough to get into a wirehouse training program. If you do, you will receive a salary for an extended period of time and be expected to join a team. Eventually, you either produce or they cut you.
Go to Edward Jones. In my opinion, that is the best place to start as a young rookie. Their training program is second to none and they truly teach you how to develop a client. Be careful though not to drink the coolaid, if you do well, its not the place to stay. Just a good place to start.
lesson number one if you're going to get into this industry - humility, humility, humility!
just because you know people with money does not mean they are willing to give it to you to manage. If you get into this business, my advice is to never ask anyone you know with money to invest with you. Let them see your progress, hard work and eventual success and then they will come to you with all of their wealth. If you ask them to "try you out" with a few bucks, theres virtually no way for you to win. If instead you be patient, they will eventually all want to work with you more than you want them as clients.
this is a marathon. it is much better to have them join you on mile 8 than at the starting line.
good luck! - its an amazing business!
Rob, I have a question about Edward Jones. I interned there in 2009 and really liked it. I am looking at a career change now and I am once again considering them. My question involves the doorknocking. I have to leave my current job because of the physical demands (I'm a disabled veteran with really bad knees) I am not scared about putting in long hours to establish myself; what I worry about is the door knocking. There are some days I just cannot do it.
How would this effect me with Edward Jones? I am going to one of the mixers tomorrow and would love to know the answer before I go.
Avoid Ed Jones like the plague. You don't learn anything like sophisticated financial planning, and they own your book. They aren't a protocol firm, so moving on can be more difficult. Can you do OK there? Sure. I think the best route is to get on with a mid-major firm like a Stifel or the like, and start building your book. I would even suggest a MSSB or ML if you go in knowing they are probably going to cut your throat. If you can withstand this reality, and can build the start of a book you can jump to an independent and then the fun begins. Maybe a bank advisor is a good start for many. You can get access to people with money, but don't forget to find a path of prospecting in the first few years.