Financial Advisor Career Full Information: Pros and Cons

Unlimited earning potentialYou must develop a client base
Low start-up costsMarketing costs vary widely
Lifetime learningYou will never learn everything
Huge range of products + strategiesConsider a somewhat narrow focus
Ongoing interaction with peopleConfidence and friendliness are essential
Licensing is not difficult or expensiveMust be sponsored by a brokerage co.
Modest ongoing regulatory costsFigure $300+ per mo. for insurance, etc.
You are your own bossStrong work ethic needed
Flexible hoursPlan on 40-50+ hrs. a week for 3-5 years
Personal Financial Advisor Career Pros & Cons

Personal Financial Advisor Career Information: Pros & Cons

There are lots of goods and bad about being a financial adviser. The good news is when the accounts are going up, and people are following their plans, and they are doing what you advise them to do, most of the time, things turn out pretty good, especially if you’re planning for the long term.

Other times, if people don’t follow what you agreed to do with them, which often happens; life happens is what I would say, and something comes up, and they were going to save, but then they couldn’t, or they couldn’t save at their job, or however; you set something up and then they didn’t do it, those really, those can be very frustrating times. And so, one of the things I think is extraordinarily important if you want to be a financial adviser is you have to be very flexible with your clients. Every person’s life changes as they go through their life, and so you can plan one thing, but life could hand you something else.

So, if you’re going to get into the career, please remember, there’ll be good days and bad days, and a lot of it will be based on the market, but a huge portion of it will be if your clients can take your advice. And for those who do, long term, the best part is they actually become wealthy and have the life that they deserve and want, and on the maybe not so good side, maybe they didn’t save quite enough, and then they have to work a little longer.

Financial Advisors: Pros and cons

So that baby is probably not concerned about this at this point in their lifetime there’s time there’s your financial fees bruised celery is here with that first things first like what is up with the Chi up the chicken is so important.

So you go into a supermarket how much is a prepackaged chicken to buy about nine bucks 999 nine bucks you know so my point is that people who do the guy do the grocery shopping in my family I am tell you what I pay for milk bread eggs roast chicken yeah but most people have absolutely no idea what they pay for their investments.

They have absolutely no idea and you know with the roast chicken you pay $9.99 yeah you would not pay $29.99 unless Ryan Gosling himself was selling you two chickens.

So we need to pay attention to this because it really really matters and it’s not to say that we shouldn’t pay fees for advice but we should know what they are and most of us don’t know what they well what is the variation I mean do they range that vastly from investment to investment.

Yes they do significantly so here is my metaphor we have three examples okay I’m bringing up three things so much food so much food and I was kind of jealous of our chef because his was presented much more elegantly than mine but this is gonna work so here we have raw chicken you buy at the supermarket.

So this is analogous to having your investments at a discount broker okay maybe it’s an investor line or an I trade or something the pro is it’s the cheapest way to have your investments the con is you get no advice and it’s more work the middle category here is the roast chicken.

So you go to the grocery store it’s already cooked for you you bring it home this is like a robo-advisor which is a new category it could be nest or well simple there’s a whole bunch of brand names the pro is it’s cheap you get a little bit of advice the con is that advice is limited then over here you can get a check this is my favorite place on the Danforth Street them job it’s great yeah they have tender e chicken.

They have butter chicken and this would be going to a financial adviser so you get advice that’s the huge Pro you get some hand-holding the con is the cost so these three approaches have three different pros and cons and three different prices if we say you’ve got $200,000 in investments.

Which you have nothing when you’re starting your life and lots when you’re about to retire relatively speaking so let’s I’m just picking the number out of the air yeah $200,000 this means that you pay $600 with a discount advisor a discount broker $1400 with a Robo advisor and $4,000 with the financial advisor.

Now here’s the thing if you’re getting four thousand dollars worth of value keep doing what you’re doing and I will say most Canadians will go the adviser route because they need the hand-holding they don’t want to learn stuff yeah but make sure that you’re getting the value out of that and most people are like $4,000.

What what I thought it was free and many people think it’s free because it has not been broken out for them but then when you ask them so how does your financial adviser pay their mortgage how did they buy groceries for their family of course they deserve to be paid.

You just want to be more aware of what that amount is so when yours did you notice the audience is like quiet what is it we need to know or they want the chicken they’re waiting for the chicken yeah with the chicken so let’s say you’re saying that you need to look at the value of the investment.

So you need to look at the $4,000 and then you need to see how much how much money you made say over that year you see if you made beyond above and beyond that $4,000 is that how you’re looking at the value yeah well it really it comes into play with performance over time.

So this is really why we care about performance I another example this time combining two of the your favorite things in the world I’m gonna drink that later sharklet yeah you know wine glass and we can melt it up and it would be a liquid so let’s say there are thirty years old and you’re gonna stay for 35 years.

30 years old 35 years 500 bucks a month and let’s say you’ve got a 6% return on your portfolio people will debate all these variables but I think the points the same with a commission based adviser where you pay 2% you’re going to have four hundred and fifty thousand dollars four hundred and fifty chocolate chips by the end of that time period if you go super cheap.

So you don’t get any advice you just go with a discount broker you’re gonna pay much much lower but you’re gonna have a much larger amount of money six hundred and sixty thousand dollars six hundred and sixty chocolate chips yeah that difference is one-third okay that is the difference of two hundred and ten thousand dollars and again if you’re getting value for your advice hooray because here’s the thing if you have no advice you could make some really big errors.

Yes if you have great advice that your adviser is going to tell you what to put into retirement how to save for your kids education how to best manage your tax environment there’s lots of value there you just have to be clear that it’s worth it for what you’re paying.

So performance is a huge deal two hundred and ten thousand dollars a 30-year profit could go to fees if you’re not getting great advice that makes a difference for you so would your advice be that everyone needs to go buy a chicken and roast it themselves no it’s a great question and my answer is no no no.

Now I can roast a chicken myself at Claire tanzy American but other people don’t so you need to figure out your own circumstance what’s worth it for you here’s another example for me I have never ever ever filed my own taxes right I will never ever file my own taxes I pay for that I am happy to pay for that.

But I know exactly how much that costs so there’s like my call to action for people is find out how much they cost and there is a new regulatory change that is increasing our ability to do that it has the worst name in the world you ready so you want to be a regulator do not be a regulator if you like marketing it’s called CRM to the worst name ever but it changes how we look at our statements.

Yes, are going to be broken out so it’s gonna be easier for you to look at your statement and and then go ask your advisor in dollar terms like in in chocolate chips yes how much am I paying you and just find out, and then they can they can basically tell you their value yeah writing a great advisors will be like you’re paying this amount of money and here’s what I do and here’s what else I could do this and this and this and then not so great advisors will be like but the great ones and there are many many great ones yeah we’ll happily talk to you about what’s your Paley good advice.

Personal Financial Advisor Career Information: Personal Financial Advisor Job Description

This is what it’s like to be a financial advisor. My name is Janice Dunn, and I’m a certified financial planner, here in Eugene, Oregon, and the thing that we specialize in is looking at someone’s overall financial picture, and trying to find out if there are ways that they can make that picture better; save for retirement, save for education for their children, maybe pass on money to their heirs if they would like.

Generally, we look at taxes as part of that picture, and investments as part of that picture, and that can be everything from real estate to metals and commodities; all different kinds of things that you can put money in, and then hopefully later, it’ll be worth more money than you had initially. The coolest thing about it really is that every person’s plan usually is as different as their fingerprint, and so it’s really fun to work with people because everyone has a different need, and you can help people, and that’s really a good thing.

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