questions about financial adviser

I am wondering if financial adviser is a good career. Do you have to go to a target school (like I-banking) in order to become a financial adviser? If so, what are the schools and can you find a job straight out of undergrad? Is it hard to find a job? Do you make a lot of money?

 

Don't need to come from target. If you go to a salaried brokerage, think Etrade, you can make 50k to 75k and up to 100k. Branch managers make around 75k to 100k. You need to get your series 7 and 63. Get the licenses from an internship even at a small brokerage first and then go after the bigger shops.

 

I started out as an FA, it is much more sales oriented that most people assume. It is not for everyone, and the failure rate is high. If you make it past the first two years, then you could make a decent career out of it. If you get your Series & Insurance licenses and develop a network, it will be helpful down the road in other areas of Finance.

 

Being a financial advisor is a great career path, I know several guys that make a good living as advisors. But it is not recommended for someone coming right out of school. People simply would not trust a 23yr old kid with their life savings. Go do something else for a few years so you can build up knowledge and credibility. Being an advisor is all about relationships and trust. Successful advisors have strong ties to their communities, like being involved in charities, church, etc which ultimately helps them build credibility with prospects.

The wirehouses offer training programs for advisors right out of school, but the washout rate is VERY high. Again, establishing a client base is tough if you are young. The best way to break into the industry is to work for an established advisor, who can teach you the industry and eventually give you some of his smaller clients. You can also potentially "buy" a book of clients from a retiring advisor.

 

You don't need to go to a target to be a FA. I think being a FA is a good job but obviously is very sales-heavy. You have to source clients and typically are asked to bring in a good amount of money each year. Look into WF Advisors, ML, MS, UBS, etc. Successful advisors have a pretty decent lifestyle and wealth management is practically everywhere throughout the US. I'll let others speak on how much control FA's have over their clients portfolio but I would assume it varies by firm.

 

I find this somewhat debatable. I think people want to be in IB because it has a lot of choices afterwards and PE has the most transferable skills. Not a lot of sane people truly think it's Carlyle, KKR, etc. or bust. I have a ton of respect for FAs because it's a tough gig to last as a young guy. It is a pretty decent lifestyle though after 5-7 years and is a good finance job to raise a family IMHO.

 

The fact that its hard to survive as a young guy is what makes those places safer than a full service broker for a younger person who can't survive on commission or who doesn't have a book. Those online or mass affluent shops are doing sales but they give you warm leads.

 
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The fact that its hard to survive as a young guy is what makes those places safer than a full service broker for a younger person who can't survive on commission or who doesn't have a book. Those online or mass affluent shops are doing sales but they give you warm leads.

Go work at a private bank then.

You'll get warm leads but with wealthy clientele and good training.

 

I've been wanting to know more about PB too but there isn't much info on WSO about it. I've heard they generally only service HNW and UHNW people but wondered if they still cold-call, source clients, etc. like FAs have to.

 
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DickFuld, which banks (in your mind) have the best prive wealth groups?

Given that you're asking on WSO, I assume you're asking from a career standpoint? I don't think there's a right answer for everyone. You have the Morgan Stanley/Merrill Lynch/UBS/Wells Fargo Advisors and I personally consider them all about the same. People are buying you, not really the firm. I'm sure they all have basically the same kind of services so you would not be advantaged or disadvantaged by choosing one over another. Then you have the firms that are 'high-end' brokerages like Lehman used to have. Places like Goldman Sachs, JP Morgan Securities (former Bear Stearns), maybe Merrill PBIG, (used to be) Credit Suisse. Honestly, I don't think these places are terribly different from the first group. Maybe they have a little more cachet and connectivity to the investment bank, but that's about it. The average production level and account minimums are generally higher at these places, but that's more of a function of the people who end up there, rather than any differential in the offering. Third, you have all of the private banks: JP Morgan Private Bank, U.S. Trust, BoNY Mellon, Citigroup Private Bank, Wells Fargo Private Bank, etc. These are different than the brokerages, especially in terms of how they source business. For the most part at the wirehouses, they give you a seat and a phone and you are expected to go out into the world and find new clients. As you could imagine, this borders on impossible for recent college grads who don't already come from money. At private banks, you might be given trust accounts from people who quit and work with other parts of the bank for referrals. As such, the standards to get in are somewhat higher than wirehouses, the failure rate is substantially lower, and both the upside and downside are relatively limited compared to being a broker at a wirehouse. What's better? That depends on you.
 

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