Questions about a career as a Financial Planner...

Kristoffer - I am not a financial planner or never worked as one, but I have dated and known several financial planners.

I would recommend it for the right person. It certainly is not an easy job initially, but if you are a good salesman and do not mind being shot down, in the long term it can be very lucrative. It takes many years of building up a business (many years with perhaps not making much money). If you are good and build a good business - you could be successful with a big client base and basically just service those clients - no longer have to solicit. That is when you get the payoff. I will honestly say that most do not stay with it. It is really tough during the beginning. But I have also met those financial planners who after 10 years, basically work part time and make lots of money just from all the revolving business.

I think you have a good description, but honestly some of the best (meaning those making the most money), really don't care that much about making a financial dream come true - they just sound like they do. Not that there are not some that really seem to care about their client's financial situation, but most seem to care more about making the sale.

When you first start you make cold call after cold call - being shot down by a significantly higher percentage than you get positive responses. Some companies that have financial planners give you better contacts than others. Most make you pay for the leads - and most of these leads are crap. But if you get a couple of good ones, that can be huge commissions. You probably don't eat lunch at Chili's because you are not making any money (you end up spending as much as you make initially), you bring lunch. No - a financial planner does not leave the office at 5 (at least any that I know). They stay (and it is expected they do) until late. Typically when you start out - you are still on the phones. If you are lucky you might get a service call here and there, but most nights you are still calling from the office.

You are right - when you start - there is little time for anything else. Even though I was only a girlfriend, my boyfriend's boss requested (more like demanded) that I attend a meeting along with other spouses and partners. The meeting was basically to tell you in a nice way, that you are not going to see your partner that often, but also to let you know the rewards by giving this up.

The reason they ask for so many referrals is not because you are going to service each of them. It is because the majority of them will not become clients. They play the odds. If you get 30 - 40 a week, you may get a couple (if lucky) of clients from that group. You need lots of clients in order to make money. Once you have first established a plan for your client, there really is not much more work. It is the initial set up that is time consuming. After that you may schedule a half hour or hour meeting once a year (possibly even just a phone call to see if they feel they need to revisit their plan).

You could succeed with some sincerity, but it will take much much longer and require a lot of dedication on your part. I think it is possible - and I have seen some of the older planners that seem to be sincere, but most of the younger ones are basically in my opinion, nothing better than used car salesmen.

I think if you truly do want to do this - you can be successful while still being a sincere and good guy. It is hard and you will have to give up a lot, but if you are persistent and don't mind all the crap you will need for a while, once you reach a good client base, it is a great job. But it is probably one of the toughest while you are working towards it.

Thank you, Linkat, for your thoughtful and upfront response.

You have confirmed many of the things I suspected. I've always been a bit shy, so I'm not sure I'd do well with the sales aspect of the job (which, apparently, is a big part of the job).

some of the best (meaning those making the most money), really don't care that much about making a financial dream come true - they just sound like they do.

I can see this in their eyes when they use glittering generalities like "unwaivering intergrity" and "commitment to excellence" and how they always stress the importance of family. It's all too transparent.

No - a financial planner does not leave the office at 5 (at least any that I know). They stay (and it is expected they do) until late.

Working 8-5 in a cubicle is starting to sound a lot more appealing.

I don't think I'm cut out for this line of work. The only problem now is that I'm very close to graduating with a BA in Finance, and the only job offers coming my way seem to be for financial planning. (This makes sense, since these companies don't pay benefits, they don't pay salaries, and they don't pay for the necessary examinations--what do they have to lose?)

This brings me back to the LAPD. Either that or the military, since my parents declined when I asked them how they'd like me as a their butler.

Any of you know a lonely, rich heiress? I'm in very good shape, with low body fat; I can cook everything Giada de Laurentiis can; I don't mind domestic work; and I'm better at shiatsu than any massage therapist from Bryman.

Goodness - don't worry about not having a job yet! You haven't even graduated. Most college graduates (at least when I did) did not have jobs right away. I didn't get a job until the following fall after I graduated.

Also, most companies that recruit on-campus tend to take the cream of the crop. The average graduate will need to find a job other than through on-campus recruiting. I graduated with a Economics-Finance Degree so not so different than you.

You could call up some banks and talk with their HR department - see if they look to hire recent graduates and what sort of opportunities could be available. Also, they might give you an informational interview. Another area where there are lots of jobs are mortage companies (and I don't mean necessarily selling mortages) - but those that process and approve the financial side - can't remember the name, but many finance graduates get jobs in that area.

Another possibility is finance companies, trust companies or mutual funds. I know there is at least one mutual fund company that is supposed to be good to work for in CA - can't remember the name at the top of head.

Also, use your career placement office. They can give you advice and direction. There are jobs out there for recent graduates. I work in the mutual fund industry and we have tons for entry level (unfortunately I am in Boston).

One other thought - try a professional recruiter. At least in this area - the company pays the recruiter for any new hires. Basically you can look them up in the newspaper or phone book. They will even help you with your resume - they then match you with an employer wanting a certain background and they set up the interview. I have done that for most of my jobs and I never paid a cent. One warning - they don't get the nickname headhunter for nothing - again they look to place people to get the commission. So they are not necessarily looking out for your best interest.

So if you use one - do your own research on the company and be prepared to ask some questions so you get a good feel on how it is to work there.

I appreciate your advice, Linkat.

All of the suggestions you gave sound better than financial planning (IMO).

I'm definitely going to look into them.

Tonight I'll make dinner for my parents in order to effectively butter them up. Then I'll tell them that I might be living with them longer than I expected.

Ah, I feel so much better now! Time for the gym! (Just in case a lonely, rich heiress responds...)