Side Hustle: Hourly financial planning

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Driving On
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Side Hustle: Hourly financial planning

Post by Driving On » Sun Feb 25, 2018 5:27 pm

First, I would like to thank all the members of this community for the awesome advice and guidance. I have been a follower of Bogle for almost 10 years and reading this site for 18 mos. I just registered, in order to ask a question that is similar to others posted on this site. Is anyone successfully providing hourly advice/assistance to essentially diy investors (state employees)for a reasonable fee?

My relatives in the financial services industry have assured me this model will not work.

My plan is to fill out the u10, pass the series 65, register with my state, get proper insurances, start meeting face to face with customers. Then begin taking night classes for CFP. Please poke holes in this plan.

It is my goal to provide excellent customer service and boglehead advice to mainly state employees. Hopefully, this will result in a profitable and enjoyable part time career as I begin transitioning towards early retirement in the next 5-8 years. I look forward to all replies and suggestions.

Thanks again and I’m glad to finally be a member.
Driving On

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woof755
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Re: Side Hustle: Hourly financial planning

Post by woof755 » Sun Feb 25, 2018 7:09 pm

I've thought about doing this, too. Maybe when the kids are in college. So, I'm not one to poke holes in your theory.
I'd like to get the education, then start giving talks to my own colleagues for free. Could even give some talks to local groups and pick up clients that way.
I guess I could make money doing it. With all the terrible advice people are getting, though, it's community service as well.
"By singing in harmony from the same page of the same investing hymnal, the Diehards drown out market noise." | | --Jason Zweig, quoted in The Bogleheads' Guide to Investing

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rob
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Re: Side Hustle: Hourly financial planning

Post by rob » Sun Feb 25, 2018 7:27 pm

How do you plan to get clients? Without the network of "clients" from the company with it's national advertising, brand recognition etc, I can see it been a hard road.
| Rob | Its a dangerous business going out your front door. - J.R.R.Tolkien

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arcticpineapplecorp.
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Re: Side Hustle: Hourly financial planning

Post by arcticpineapplecorp. » Sun Feb 25, 2018 7:33 pm

I won't poke holes but rather ask some questions to get you thinking:

1. Why are you limiting your services to state employees only? Some planners have niches but that sounds not only very specific, but wouldn't it require you potentially to be travelling all over the state to meet with people (don't know how big your state is). Seems like a limited pool to draw from.

2. How much do you think you'll make? How much will you charge? What will your pricing be--AUM or hourly? If AUM, can you compete with roboadvisors? If hourly, how much will you charge?

3. I work for the state and while some may have assets saved through deferred compensation and/or take a lump sum option(their contributions) in exchange for a reduced pension, we're really not usually talking about assets in the millions but rather in the 200-300K range (salary depending of course). How much do you expect them to pay you to manage assets of a smaller size?

4. My deferred comp plan has a representative that comes to our office a couple (or few) times a year. Mainly to do presentations (get more people enrolled, and new employees who haven't seen the training) but also provide one on one meetings. I personally attended one on one sessions twice to get some feedback on my plan(savings rate, level of risk, etc). While I didn't find it particularly helpful (it was not a full blown report that I would get from a financial planner) it was something. Some times employees will stick with this and not seek outside help.

5. That being said, many employees who are approaching retirement tend to meet with a cfp (of their choosing) to discuss issues like taking the lump sum option (or not), investing for retirement, if they'll have enough, health insurance options, etc. However, these have been just one session usually and not ongoning planning. Is that what you're looking to do, meet with state employees before they retire? If so, with the hopes of managing their assets or just providing a plan/going through the options?

6. How do you react when people don't take the best advice you have to offer them?

7. How do you plan to get to the state employees? Sure some states have the employees listed as a matter of public record (mine does). But you don't have every state employee's phone number or email address to contact them, do you? If so, how is that? Are you trying to get a contract with the state to be the sole provider of these services to the state employees? If not, or you can't get that, what's to stop others from trying the same idea you have?

8. How much money do you plan to spend on advertising to get new clients?

9. How do you feel about having to pay to get CECs each year (or few years)?

Services might be helpful for some, as I have seen employees who retired take the lump sum or part of it to remodel their kitchen which meant they paid taxes on the entire withdrawal (instead of deferring) and usually pushing them into a higher tax bracket when getting a HELOC would have been the better option (because it partly would have been tax deductible and paid over time at a low rate of interest presumably). Seeing people make bad decisions like that drives me crazy. But that's people for you.

I suppose this would be a side gig for you since you're approaching retirement youself? I'm assuming you're not trying to grow a business?
"Invest we must." -- Jack Bogle | “The purpose of investing is not to simply optimise returns and make yourself rich. The purpose is not to die poor.” -- William Bernstein

Driving On
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Re: Side Hustle: Hourly financial planning

Post by Driving On » Sun Feb 25, 2018 7:59 pm

Arcticpineapplecorp great questions thank you.
1. I currently have a very good relationship with many state employees in my local area. Underserved and oversold market in my opinion.
2. $75-100/hr
4. Some of deferred comp guys are very damaging with their quick advice on rollovers and Roth conversions. The 403b guys are sharks in general.
5. Hopefully, I could build ongoing relationships, with yearly checkups.
6. This is tough. Many of these folks don’t even understand the basic mechanics of their pension.
7.Word of mouth only
8. $0
9. I’m sure I could learn something (cont. ed. credits)
I’ve seen the same things. Drives me crazy as well.
Thank you

hale2
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Re: Side Hustle: Hourly financial planning

Post by hale2 » Sun Feb 25, 2018 8:01 pm

Make sure you look into the various regulations for providing financial advice. It is rather burdensome if you are just going to do it as a side gig.

Driving On
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Re: Side Hustle: Hourly financial planning

Post by Driving On » Sun Feb 25, 2018 8:06 pm

Rob and Woof,
Thank you for the replies. I understand the brand recognition issue, however I think word of mouth, personal relationships and referrals still carry a lot of weight in my area. I’m also really disappointed with some of the ?advice? this group has received.

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nedsaid
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Re: Side Hustle: Hourly financial planning

Post by nedsaid » Sun Feb 25, 2018 8:16 pm

One thing you have to overcome is this, "Why should I listen to you rather than the Edward Jones advisor?" So it is establishing enough credibility so that people will want to buy your services. I think you will find that you will need to charge at least $150 an hour for your services to make this pay for you. Also, you will face a lot of competition.

Neurosphere posts here, he does precisely what you are wanting to do. He is a Doctor who does financial planning for other Doctors. You might send him a message and ask what he is doing.
A fool and his money are good for business.

JBTX
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Re: Side Hustle: Hourly financial planning

Post by JBTX » Sun Feb 25, 2018 8:20 pm

Are you just going to be pure consulting? Client comes to you with all the information, and you share your pearls of wisdom and leave it to them to act on it? Most people who want financial help tend to want more hand holding.

How many employees are we talking about? How often would you expect to advise them? More than annually seems unnecessary. So if it is 4 hours per year, times 10 clients $400*10=$4000. Or 20 clients $8000.

If you later decide it isn't worth your time, can you easily unwind things?

People are going to have to come up with and pony up $200-$400 per year, just for a couple of sessions. People may grow weary of that. There is a reason financial planners pull money directly out of the managed investment accounts - because the fees get buried. If people have to pay your fees out of their everyday working fund the might balk.

I hope it works for you. I wouldn't mind a similar sort of side hustle once into retirement, but I'm skeptical it is worth the time and effort.

bsteiner
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Re: Side Hustle: Hourly financial planning

Post by bsteiner » Sun Feb 25, 2018 8:22 pm

Sheryl Garrett has done this successfully and franchises it. You might look at her website.

I suggested that she and her franchisees ought to focus on wealthier clients but her model is to focus on middle income clients.

The hard part is getting enough work to fill up enough of your time without selling any products or charging AUM fees. It may be easier if it’s a sideline.

mega317
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Re: Side Hustle: Hourly financial planning

Post by mega317 » Sun Feb 25, 2018 8:33 pm

Don't you need like years of apprenticeship to get a CFP?

552BB
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Re: Side Hustle: Hourly financial planning

Post by 552BB » Sun Feb 25, 2018 8:36 pm

Hello BH,

I like this thread.

At work, so I will check in later.



:D


:sharebeer

redhotlama
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Re: Side Hustle: Hourly financial planning

Post by redhotlama » Sun Feb 25, 2018 8:40 pm

mega317 wrote:
Sun Feb 25, 2018 8:33 pm
Don't you need like years of apprenticeship to get a CFP?
2 years under a CFP or else 3 years.

normaldude
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Re: Side Hustle: Hourly financial planning

Post by normaldude » Sun Feb 25, 2018 8:44 pm

Someone should start a website that lists hourly fee-only CFPs, with the hourly fee range clearly displayed.

I would send all my friends & relatives to a website like that.

The NAPFA.org & CFP.net websites don't list the hourly rates.

venkman
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Re: Side Hustle: Hourly financial planning

Post by venkman » Sun Feb 25, 2018 9:01 pm

nedsaid wrote:
Sun Feb 25, 2018 8:16 pm
One thing you have to overcome is this, "Why should I listen to you rather than the Edward Jones advisor?" So it is establishing enough credibility so that people will want to buy your services. I think you will find that you will need to charge at least $150 an hour for your services to make this pay for you. Also, you will face a lot of competition.
This. It's the other side of "Once you know enough to choose a good financial advisor, you no longer need one."

It might work if you can get a lot of word-of-mouth referrals. But the average person who knows little to nothing about investing will have to choose between you, who wants money up front that the client will need to physically write a check for, and the EJ guy, who is willing to work for no money up front and will only charge what seems to be a pretty small percentage fee that will be deducted automatically and he has a professional-looking office and I can just give my money to him and never have to worry about it again...

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tfb
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Re: Side Hustle: Hourly financial planning

Post by tfb » Sun Feb 25, 2018 10:36 pm

Driving On wrote:
Sun Feb 25, 2018 5:27 pm
My relatives in the financial services industry have assured me this model will not work.
It may not work if you are trying to make $200k a year but I don't see how it can't work if you are not trying to make a living on it. You have very little cost in doing the work. Say you charge $500 per person for a few hours of work per year. With only 20 clients you will make $10,000. If you have your network of state employees who trust your knowledge about the state's specific programs you will have a niche. While $10k a year can't sustain someone looking for full time work, it's a nice add-on for a retiree. You get the satisfaction of helping fellow state employees. You clients also thank you for your honest service. Win-win.
Harry Sit, taking a break from the forums.

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steadyeddy
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Re: Side Hustle: Hourly financial planning

Post by steadyeddy » Sun Feb 25, 2018 10:49 pm

I’ve thought about this, but a part-time gig charging only reasonable hourly rates would barely cover the cost of E&O. I’ve decided it’s better to give away my advice for free to the very few people that solicit it.

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woof755
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Re: Side Hustle: Hourly financial planning

Post by woof755 » Sun Feb 25, 2018 11:25 pm

redhotlama wrote:
Sun Feb 25, 2018 8:40 pm
mega317 wrote:
Sun Feb 25, 2018 8:33 pm
Don't you need like years of apprenticeship to get a CFP?
2 years under a CFP or else 3 years.
At the end of the day, CFP is just a commercial endeavor making money selling a certificate so your name looks better with letters after it.
in competing with people who have gone through the hassle, if you don't have it you might suffer in comparison. But it's just the client's perception.

Like "who's who among people who paid for our course and passed, then jumped through our arbitrary hoops."

I believe the coursework would be helpful, and might even take it. But, unless it's consistent with my plan, I wouldn't sweat the hours needed to complete the certificate. Can just consider yourself "board eligible" for the CFP. It's the brains that matter, not the letters.
"By singing in harmony from the same page of the same investing hymnal, the Diehards drown out market noise." | | --Jason Zweig, quoted in The Bogleheads' Guide to Investing

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woof755
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Re: Side Hustle: Hourly financial planning

Post by woof755 » Sun Feb 25, 2018 11:25 pm

steadyeddy wrote:
Sun Feb 25, 2018 10:49 pm
I’ve thought about this, but a part-time gig charging only reasonable hourly rates would barely cover the cost of E&O. I’ve decided it’s better to give away my advice for free to the very few people that solicit it.
I like this idea, too.
"By singing in harmony from the same page of the same investing hymnal, the Diehards drown out market noise." | | --Jason Zweig, quoted in The Bogleheads' Guide to Investing

aristotelian
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Re: Side Hustle: Hourly financial planning

Post by aristotelian » Sun Feb 25, 2018 11:38 pm

I have thought about something along these lines too, but I have become convinced that it's probably not realistic. You have the startup costs of liability insurance and compliance at a minimum, plus taking CFP coursework in order to do an ethical and competent job. Once your startup costs get into the $10K+ range, you probably need to do it as a full time job to make it worthwhile.

Shallowpockets
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Re: Side Hustle: Hourly financial planning

Post by Shallowpockets » Mon Feb 26, 2018 8:07 am

How are you going to feel if, on review, your financial,planning for someone falls short of expectations? You seem genuine, but financial recommendations are capricious.
Remember, this is people's lives and money. I think most FA lean towards the car salesman mode of ethical thinking. In order to be successful, you have to suspend a certain moral character.
Are you prepare to do that?

JoeRetire
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Re: Side Hustle: Hourly financial planning

Post by JoeRetire » Mon Feb 26, 2018 8:57 am

Driving On wrote:
Sun Feb 25, 2018 5:27 pm
My plan is to fill out the u10, pass the series 65, register with my state, get proper insurances, start meeting face to face with customers. Then begin taking night classes for CFP. Please poke holes in this plan.

It is my goal to provide excellent customer service and boglehead advice to mainly state employees. Hopefully, this will result in a profitable and enjoyable part time career as I begin transitioning towards early retirement in the next 5-8 years.
- Targeting only state employees seems rather limiting
- Many folks wouldn't want to pay for a non-CFP
- Seems like you'll be spreading yourself thin - primary job, side hustle job, classes, trying to find clients - all at the same time
- Many folks wouldn't want to establish a relationship with a solo adviser who wasn't going to be around after 5-8 years
- Many folks wouldn't want to work with an adviser doing a "side hustle" rather than someone committed full-time
- It can take a long time for a beginning solo practitioner to attract clients

That said, you can still start out and see where it leads you. Maybe you'll attract enough clients quickly enough, maybe you won't.

Good luck!

camden
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Re: Side Hustle: Hourly financial planning

Post by camden » Mon Feb 26, 2018 9:36 am

What about liability? There is always the risk that a disgruntled client whose portfolio is perceived by them to have performed poorly while acting on your advice may sue you. Can you get insurance? What would that cost?

barnaclebob
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Re: Side Hustle: Hourly financial planning

Post by barnaclebob » Mon Feb 26, 2018 10:49 am

Dealing with people who don't know about finances or who have different ideas about what you should be doing is much different than talking to bogleheads where we all already believe in roughly the same strategy.

KSActuary
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Re: Side Hustle: Hourly financial planning

Post by KSActuary » Mon Feb 26, 2018 12:45 pm

I think that the biggest challenge you will have is to get people to actually pay you.

Who is your custodian?
Which firm will you affiliate with so that you have compliance oversight? SEC frowns on the one man shop.

For example, say someone with a million dollar IRA walks up and wants your help. You decide the expected fee is $2,500. Where does the $2,500 come from? Out of pocket, good luck. Out of the IRA? Better chance of getting paid.

What about repeat business? May not have much if you are good.

fishboat
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Re: Side Hustle: Hourly financial planning

Post by fishboat » Mon Feb 26, 2018 2:27 pm

Not intending to cast any aspersions, but to address the elephant in the room on this thread..

You may not want to refer to a financial planning service as a "hustle" or "side hustle".

While what you're proposing is laudable and much needed in the world, particularly in the financial service industry, using old-fashioned terms like "part time job" or "small business" might be a reasonable idea.

Driving On
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Re: Side Hustle: Hourly financial planning

Post by Driving On » Mon Feb 26, 2018 4:45 pm

Thanks for all of the replies.
First, small business will replace side hustle as soon as I figure out how to edit previous posts. I completely agree.
Second, I agree getting folks to pay cash up front may present a problem. (Especially at $150/hr. A more reasonable number)
Third, sort of viewing this as a challenge, mental exercise. Looking forward to gaining certifications.
Fourth, I’d still love to hear from anyone who has done this successfully. (Hourly, advice only, part time, upper middle class clients)
Thanks.

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nedsaid
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Re: Side Hustle: Hourly financial planning

Post by nedsaid » Mon Feb 26, 2018 10:19 pm

venkman wrote:
Sun Feb 25, 2018 9:01 pm
nedsaid wrote:
Sun Feb 25, 2018 8:16 pm
One thing you have to overcome is this, "Why should I listen to you rather than the Edward Jones advisor?" So it is establishing enough credibility so that people will want to buy your services. I think you will find that you will need to charge at least $150 an hour for your services to make this pay for you. Also, you will face a lot of competition.
This. It's the other side of "Once you know enough to choose a good financial advisor, you no longer need one."

It might work if you can get a lot of word-of-mouth referrals. But the average person who knows little to nothing about investing will have to choose between you, who wants money up front that the client will need to physically write a check for, and the EJ guy, who is willing to work for no money up front and will only charge what seems to be a pretty small percentage fee that will be deducted automatically and he has a professional-looking office and I can just give my money to him and never have to worry about it again...
In my work experience, I have seen the other side of the financial business and know the realities of making a buck trying to do this. It is easy to trash advisors for charging too much but there is another side to this. It flat costs money for the overhead of a business plus hiring people to help you. You need to charge enough and then have a critical mass of clients and client dollars to make this all work. The business world isn't easy and in the financial business there is a lot of fierce competition. For every hour that an advisor meets with a client, there is at least two or maybe three hours of their time or somebody else's time for preparation.

So it makes sense to do as much of it yourself as you can as this will save a lot of money. But most people are not Bogleheads. Even as knowledgeable as I am, I would like to hire a planner before retirement to make sure I am doing things right. A lot of decisions around retirement are irrevocable or difficult to reverse. It is smart to get advice from someone who has helped a lot of clients, a good advisor has seen a lot and can help guide you around the pitfalls.
A fool and his money are good for business.

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unclescrooge
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Re: Side Hustle: Hourly financial planning

Post by unclescrooge » Tue Feb 27, 2018 10:52 am

camden wrote:
Mon Feb 26, 2018 9:36 am
What about liability? There is always the risk that a disgruntled client whose portfolio is perceived by them to have performed poorly while acting on your advice may sue you. Can you get insurance? What would that cost?
A lawsuit wouldn't really cost anything. They would file a complaint with finra, and go through arbitration. Unless you've been negligent like putting a 70 year old in 100% tech stocks, or sold an annuity to a 90 year old, or embezzled money (all of which are true stories) they don't really have a case.

A more likely scenario is you will run afoul of compliance, and get fined for that. I heard this story of a financial advisor in Florida who put up his website before getting approval from the state. He was fined $10k for improper marketing, and has to disclose this forever.

E&O insurance, 3rd party compliance, taxation and accounting fees, financial planning software, performance reporting software and a crm tool will run about $8,000 a year. This doesn't include start up costs.

And the national brokerage platforms won't let you on unless you have several million in assets under management.

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unclescrooge
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Re: Side Hustle: Hourly financial planning

Post by unclescrooge » Tue Feb 27, 2018 11:17 am

KSActuary wrote:
Mon Feb 26, 2018 12:45 pm
I think that the biggest challenge you will have is to get people to actually pay you.

Who is your custodian?
Which firm will you affiliate with so that you have compliance oversight? SEC frowns on the one man shop.

For example, say someone with a million dollar IRA walks up and wants your help. You decide the expected fee is $2,500. Where does the $2,500 come from? Out of pocket, good luck. Out of the IRA? Better chance of getting paid.

What about repeat business? May not have much if you are good.
Advisors managing less than $100 million are not SEC registered. They are state registered.

Starting out presents a chicken or egg problem. No one wants to hire someone who hasn't already been doing this for ten years.

Customers would rather hire an incompetent baboon with 10 years experience selling whole life insurance than a newly minted advisor with ten years experience on BH.

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unclescrooge
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Re: Side Hustle: Hourly financial planning

Post by unclescrooge » Tue Feb 27, 2018 11:19 am

woof755 wrote:
Sun Feb 25, 2018 11:25 pm
steadyeddy wrote:
Sun Feb 25, 2018 10:49 pm
I’ve thought about this, but a part-time gig charging only reasonable hourly rates would barely cover the cost of E&O. I’ve decided it’s better to give away my advice for free to the very few people that solicit it.
I like this idea, too.
No one values free advice. Most people out in the real world associate the worth of advice as a direct correlation to cost.

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djpeteski
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Re: Side Hustle: Hourly financial planning

Post by djpeteski » Tue Feb 27, 2018 11:43 am

To me the biggest hole in your plan is that you are going to ask people to pay for advice they don't want.

Sure some people want good advice, but most don't. Drive by your local AmScott locations. Most cars in that parking lot are a whole lot nicer than mine. How come they need payday loans? Look at peoples reoccurring habits: smoking, drinking, lottery, coffee, etc. Had they invested that money from the time that they were 18 until 60 they would probably be millionaires even if they did nothing else.

I feel that you will fail if you attempt to market your services to the general population. I have taught the Dave Ramsey FPU course and have seen people on both ends of the spectrum. Some with an intense desire to change their future, and others who are in collections on their credit cards and will not give up the regular mani-pedi's.

You have to find a population of people that are not 100% sure of their finances, but have a desire to be wealthy. Marketing to them will be key.

aristotelian
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Re: Side Hustle: Hourly financial planning

Post by aristotelian » Tue Feb 27, 2018 11:47 am

Driving On wrote:
Mon Feb 26, 2018 4:45 pm
Thanks for all of the replies.
First, small business will replace side hustle as soon as I figure out how to edit previous posts. I completely agree.
Second, I agree getting folks to pay cash up front may present a problem. (Especially at $150/hr. A more reasonable number)
Third, sort of viewing this as a challenge, mental exercise. Looking forward to gaining certifications.
Fourth, I’d still love to hear from anyone who has done this successfully. (Hourly, advice only, part time, upper middle class clients)
Thanks.
These people may not exist, and that tells you something.

I did come across this blog post when I was looking into it.

https://www.kitces.com/blog/setting-up- ... han-10000/

KSActuary
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Re: Side Hustle: Hourly financial planning

Post by KSActuary » Tue Feb 27, 2018 12:23 pm

[/quote]
Customers would rather hire an incompetent baboon with 10 years experience selling whole life insurance than a newly minted advisor with ten years experience on BH.
[/quote]

I do not think this is true today given technology.What you say may have been true 20 years ago when bad advice was sold, not solicited but there are plenty of firms with no real experience grabbing plenty of market share due to their use of technology. Why can't someone put up a nice web site and charge a flat fee while using TD Ameritrade?

GratefulinNC
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Re: Side Hustle: Hourly financial planning

Post by GratefulinNC » Tue Feb 27, 2018 12:53 pm

Really? You are qualified to do financial planning?

Are you qualified and knowledgable enough to work with attorneys on trust planning and estate planning? Do you understand CRUTS? Do you know when to advise clients to set up an LLC?

Can you evaluate and advise on long term care options? Short term care options?

Are you a fiduciary? Prove it!

Do you have proffesional credentials? Are you a professional?

Why would I trust you to advise me on my life savings?

Unless all of the answers to the above questions are"Yes", I see little to no market demand for your services.

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unclescrooge
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Re: Side Hustle: Hourly financial planning

Post by unclescrooge » Tue Feb 27, 2018 12:56 pm

KSActuary wrote:
Tue Feb 27, 2018 12:23 pm

I do not think this is true today given technology.What you say may have been true 20 years ago when bad advice was sold, not solicited but there are plenty of firms with no real experience grabbing plenty of market share due to their use of technology. Why can't someone put up a nice web site and charge a flat fee while using TD Ameritrade?
I think you're missing my point. Anyone can put up a nice site and use technology...But clients with money aren't going to trust someone unless they've been I the business for several years.

TDA wants a minimum $10 million in assets. How do overcome that barrier?

KSActuary
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Re: Side Hustle: Hourly financial planning

Post by KSActuary » Tue Feb 27, 2018 1:10 pm

If experience mattered then Vanguard would be have a much better track record of keeping large accounts in their advisor service. I do not believe that the $10 million barrier is the issue, its compliance oversight and who provides it.

Raabe34
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Re: Side Hustle: Hourly financial planning

Post by Raabe34 » Tue Feb 27, 2018 2:34 pm

Your relatives are right. You either need to be sponsored by an RIA or start your own RIA to provide investment advice for a fee, whether that fee is hourly or AUM. $5,000 is a fair number for estimates there. That doesn't get you out of the gate with any planning software or to an appointment or a rented space for appointments. There will be client acquisition costs if you attempt to acquire clients, otherwise you'll literally be hanging around waiting for the phone to ring.

If you want to be involved in this line of work somehow, you need to talk to someone working in it currently who has a philosophy in managing money that you can somewhat agree with(Passive shop with AUM billing) and see if you can work something out there.

inbox788
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Re: Side Hustle: Hourly financial planning

Post by inbox788 » Tue Feb 27, 2018 2:55 pm

tfb wrote:
Sun Feb 25, 2018 10:36 pm
It may not work if you are trying to make $200k a year but I don't see how it can't work if you are not trying to make a living on it. You have very little cost in doing the work. Say you charge $500 per person for a few hours of work per year. With only 20 clients you will make $10,000. If you have your network of state employees who trust your knowledge about the state's specific programs you will have a niche. While $10k a year can't sustain someone looking for full time work, it's a nice add-on for a retiree. You get the satisfaction of helping fellow state employees. You clients also thank you for your honest service. Win-win.
Just wait till someone sues you for the poor outcome they experience. You don't want to deal with the hassles you'll face in the next downturn for a measly $10k that you probably don't need. It's a wonderful idea, but full of risks.

You're competing with professionals dressed in fancy suits, driving fancy cars and meeting clients in fancy offices. The average person will be more impressed with the fancy stuff than with you. Will you be providing personalized fancy bound 50 page presentations and projections?

There is a reason things are the way they are.
At the end of the day, the business model that got us funded was advertising. The model that got us acquired was analyzing users’ personal homepages so we could better target ads to them. Along the way, we ended up creating one of the most hated tools in the advertiser’s toolkit: the pop-up ad. It was a way to associate an ad with a user’s page without putting it directly on the page, which advertisers worried would imply an association between their brand and the page’s content. Specifically, we came up with it when a major car company freaked out that they’d bought a banner ad on a page that celebrated anal sex. I wrote the code to launch the window and run an ad in it. I’m sorry. Our intentions were good.
https://www.theatlantic.com/technology/ ... in/376041/

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tfb
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Re: Side Hustle: Hourly financial planning

Post by tfb » Tue Feb 27, 2018 3:35 pm

I communicated with many hourly and project fee advice-only advisors all over the country. You'd be surprised to hear how busy they are. Some have all the business they want and they are not taking any new clients. Some are booked solid with a waiting list for several months. Fee-for-consultation is in great demand. Most people don't know it's even possible to get advice without having their money managed or getting sold some products. Once they know, they get it, and they tell others.
Harry Sit, taking a break from the forums.

wfrobinette
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Re: Side Hustle: Hourly financial planning

Post by wfrobinette » Tue Feb 27, 2018 4:15 pm

tfb wrote:
Tue Feb 27, 2018 3:35 pm
I communicated with many hourly and project fee advice-only advisors all over the country. You'd be surprised to hear how busy they are. Some have all the business they want and they are not taking any new clients. Some are booked solid with a waiting list for several months. Fee-for-consultation is in great demand. Most people don't know it's even possible to get advice without having their money managed or getting sold some products. Once they know, they get it, and they tell others.
I believe there is demand but how long did it take them to get to the point of that type of demand?

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DanMahowny
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Re: Side Hustle: Hourly financial planning

Post by DanMahowny » Tue Feb 27, 2018 4:45 pm

Shallowpockets wrote:
Mon Feb 26, 2018 8:07 am
I think most FA lean towards the car salesman mode of ethical thinking. In order to be successful, you have to suspend a certain moral character.
Are you prepare to do that?
True indeed. I know a great many "financial advisors". Occasionally they don't know what the hell they're doing, or they cannot be trusted. Usually it's both. Those that are most successful are great salesmen.
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Re: Side Hustle: Hourly financial planning

Post by tfb » Wed Feb 28, 2018 11:11 am

wfrobinette wrote:
Tue Feb 27, 2018 4:15 pm
tfb wrote:
Tue Feb 27, 2018 3:35 pm
I communicated with many hourly and project fee advice-only advisors all over the country. You'd be surprised to hear how busy they are. Some have all the business they want and they are not taking any new clients. Some are booked solid with a waiting list for several months. Fee-for-consultation is in great demand. Most people don't know it's even possible to get advice without having their money managed or getting sold some products. Once they know, they get it, and they tell others.
I believe there is demand but how long did it take them to get to the point of that type of demand?
It will take time but the OP isn't depending on the business for income.
Harry Sit, taking a break from the forums.

Driving On
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Re: Side Hustle: Hourly financial planning

Post by Driving On » Fri Mar 02, 2018 5:21 am

Thanks again. Lots of excellent points. Still working through all the points raised in responses.

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Re: Side Hustle: Hourly financial planning

Post by DoTheMath » Fri Mar 02, 2018 9:59 am

It sounds like you might be more interested in being a financial coach:

https://www.kitces.com/blog/financial-c ... ecome-one/
“I am losing precious days. I am degenerating into a machine for making money. I am learning nothing in this trivial world of men. I must break away and get out into the mountains...” -- John Muir

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