Q&A: 1st year CSA/Financial Advisor for boutique PWM

Been an independent advisor for approx 30 yrs so perhaps I can add some perspective. Know many people at the wires, at regionals, and indpendents who own their own shop like me.

I started out and have maintained an independent practice (had been in corporate sales and wanted a break from the office environment) . However, when I meet young people considering the business, I generally recommend they join a wirehouse or insurance based career shop (AXA, NWM) or bank for three primary reasons;

1. Training
2. Supoort (beyond training - infrastructure like office, computers, conference rooms,e tc.)
3. Lead generation

The banks are ideal for this compared to the others. Some are more siloed than others but in general there is a desire for cross selling. Also an opportunity to work with business bankers and network with small buisness owners who are great sources of revenue.

An anvantage the "advisor in training" has at a large organization is generally structured training and salary for a few yrs. Very difficult to go straight to commissions (although that's what I did- haven't had a salary since I was 25). The "success rate" at the banks and wires could be considered greater than regionals and independents because people stick around longer (because of the salary and lack of immediate pressure to sell). However success measured by indusrty standards (250k income plus) is hard to achieve in your earlier yrs anywhere. It takes a while to build a book, learn how to handle clients, learn financial planning. This is not a technical industry like IB or even institutional asset management (think fund manager or even fund of fund manager) although you do need to know the market, understand risk tolerance, diversification, leverage, etc. I would describe it as a combination of industry knowledge and relationship management, leaning heavy on the relationship side.

In reality (sorry technical experts) the consumer from retail to UHNW doesn't care about alpha, beta, standard deviation, 200 hundred day moving average, PE ratios or any of that. They want you to know that, or your team, but as long as their needs are met, they don't care. This is a highly client centric business. From day one, you have client interaction and affect the relationship even if you are just in a service role. If you like dealing with people and solving their problens, this can be a lot of fun.

Many on WSO think in terms of exit ops. This isn't that. This is a career. Although advisors jump around from shop to shop at times, they're still doing the same thing, not leaving for a different role. A criticism, on WSO, of PWM is lack of skill development to do other things. Again, this isn't about spending a few yrs at JPM WM and leaving for a PE shop. That's not going to happen. It's about building a sustainable client base.

Early years are lean. Work life balance is what you make it to be. The hustlers are always on. Fast forward and your long term clients become your friends, and sometimes the other way around (many of my close friends are clients- sometimes we'll go to a dinner party and I think about it and more than half the room are clients - friends first but still clients).

If you can build the book by whatever means, it ultimately becomes a great career where you make a considerable living and don't have to kill yourself. I know many many 7 figure advisors. In fact way more than in any other field. It's hard to make 7 figures. Essentially you have to be at the top of your field in any field. Full disclosure, I'm not a 7 figure advisor. I've done quite well for many yrs (say either side of half way there) but have made lifestyle decisions along the way that have kept me where I'm at. That's OK because that was my choice. I decided I like my freedom and the ability to do basically anything I want, so for many yrs I've been enjoying that freedom while mixing work and play so to speak. I only mention this because it's important to understand that you can do that in PWM and still make a great living. Can't say that about too many careers.

Oh yeah, forgot to mention - to be successful you have to be able to get checks, period! Some will be salesy, others consultative, others technical. None of that matters. You do you but YOU have to be able to get checks. If you can't, you'll starve (and be miserable).

Good selling!