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.
BTW, search on LinkedIn. You can come straight from undergrad.
Any other questions?
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.
I wouldn't do commission roles like what you may be referring to. I would do salaried broker roles. Think ETrade, Fidelity, Schwab, etc. Salary plus bonuses on a quarterly basis.
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.
read my blog, it addresses all of your questions. also, FWIW I completely disagree with TraderDaily in that etrade schwab fido and TD are good places to launch a wealth management career (unless you're independent using one of those as your custodian). no offense bro, just different strokes.
I never said TD Ameritrade or Etrade or similar are bad places. Rather those types of shops are the best option. Those were the types of places that I was referring to.
typo on my part. I do believe those places are not the best places to start a career, I should proofread more often...
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.
Depends. A few have full discretion like asset managers. Client brings them 1mm plus and they manage it, give them access to a personal website to monitor accounts. They are typically independent from what I've seen.
Not true, all of the major wires have discretionary managed account platforms and have for some time. I think either ef Hutton or Smith Barney was the first in the late 70s/early 80s
E*Trade and the like are a dead-end career, imo.
TraderDaily, do you work at one of these places or are you still in school?
If you want an easy, stress-free 8-5 job, maybe these online brokerages provide what you're looking for. However, you will be capped and pigenholed in your earnings potential and career mobility.
Most people on this board can't see past investment banking or PE. I know a guy who did ETrade. Moved up to corporate stock plans. Is now an executive at another large company.
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.
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.
DickFuld, which banks (in your mind) have the best prive wealth groups? Also, what is your opinion on Credit Suisse and Deutsche Bank recently selling off their wealth units?
What are your thoughts on the Wells Fargo Financial Advisor program?
I am not still in school but I know people at those places who are doing really well. Not 500m per year but high 5's and six figure incomes including a base salary.
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