Late 20's small business owner looking for career change

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closinggoalkeeper
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Joined: Thu May 03, 2018 10:01 am

Late 20's small business owner looking for career change

Post by closinggoalkeeper » Thu May 24, 2018 12:13 pm

I'm 29, and I've been running my own business for almost 6 years now. The product was a passion at first, but now I hate it. Luckily I have two potential buyers for the business that will make the time I've spent on this business somewhat worth it.

Anyway, I have a Bachelor's in Economics, and I've always loved financial planning/advising. By the end of June all of the retirement assets of my spouse and me will be under my management (Goodbye fees!!). In that process, I've realized that I love this even more. As boring as it sounds, I loved studying all the ETFs and funds available at Vanguard, Fidelity, and Charles Schwab. Building our IRA portfolios was a ton of fun, and I managed to diversify the entire portfolio for an average of 7 basis points of expenses.

I say all of this to ask what are some job titles and or firms that I should look at? Also, what are some steps I could take to add some skills to my resume? Get my series 7 certification (I've done a practice test, and I feel like I could pass it without much difficulty)? I don't have any hard experience in the financial industry, and all of the jobs that I would apply for now seem to be a big regression in my career journey. Most of the listings are for High School grads. I seem to be in that horrific stage where I'm overqualified / too old for an entry level position, or too inexperienced for a mid-level job.

The dream is to either have my own RIA firm where I can help people get all there AUM for less than 1% of costs, or work for a firm with a similar vision. The only fear I have with this is that I hate and am atrocious at sales. I feel like with family and close friends I could get close to $2 million in AUM, which if I charge a 1% fee, that would only net me $20,000 in revenue. With taxes and my cost of business, I'd probably not even break even. I guess I'd ideally like to manage a little bit of assets and also work for a firm where I could be on a support team helping other advisors, clients, and hopefully helping and teaching everyone I could about low expense retirement planning.

Thanks for reading my rambling. Any help is greatly appreciated.

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Pajamas
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Re: Late 20's small business owner looking for career change

Post by Pajamas » Thu May 24, 2018 12:32 pm

Have you considered going back to school and then teaching economics or business?

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inittowinit
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Re: Late 20's small business owner looking for career change

Post by inittowinit » Thu May 24, 2018 12:40 pm

This is very cool to read. I'm also in my late 20's and pivoting to a career in financial planning (currently a management consultant). My strategy is to pass the Certified Financial Planner (CFP) exam (in the process of fulfilling the education requirements). Still unsure whether I will try to start my own firm or get a couple years' experience working for someone else to learn the ropes.

If you are really interested in starting your own RIA, there are some great resources out there to check out that can give you a sense of how the industry is evolving and the types of opportunities that are available.

XY Planning Network is where I would send you to start, they have an awesome website with lots of resources on how to start your own firm. They also put out a weekly podcast with interviews of fee-only financial planning entrepreneurs (XYPN Radio).

Another fantastic resource is Michael Kitces' website (Nerd's Eye View). He is a thought leader in the fee-only RIA space and generates prolific, detailed content about various aspects of the planning industry, including how to start your own firm, pitfalls to avoid, business models to consider, etc. Kitces also has a weekly podcast (Financial Advisor Success) that is excellent fodder for prospective RIAs like you.

Feel free to PM me if you want to discuss further, always happy to talk.

closinggoalkeeper
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Joined: Thu May 03, 2018 10:01 am

Re: Late 20's small business owner looking for career change

Post by closinggoalkeeper » Thu May 24, 2018 12:49 pm

Pajamas wrote:
Thu May 24, 2018 12:32 pm
Have you considered going back to school and then teaching economics or business?
That is something that is always in the back of my mind. My wife is getting her advanced degree, so when she is done with hers, I may think about that a little more in depth.

FlyAF
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Joined: Tue Jan 23, 2018 11:14 am

Re: Late 20's small business owner looking for career change

Post by FlyAF » Thu May 24, 2018 12:54 pm

Financial Planning basically IS sales. If you're bad at sales, how in the world are you going to convince someone to give you all of their money?

closinggoalkeeper
Posts: 10
Joined: Thu May 03, 2018 10:01 am

Re: Late 20's small business owner looking for career change

Post by closinggoalkeeper » Thu May 24, 2018 12:58 pm

inittowinit wrote:
Thu May 24, 2018 12:40 pm
This is very cool to read. I'm also in my late 20's and pivoting to a career in financial planning (currently a management consultant). My strategy is to pass the Certified Financial Planner (CFP) exam (in the process of fulfilling the education requirements). Still unsure whether I will try to start my own firm or get a couple years' experience working for someone else to learn the ropes.

If you are really interested in starting your own RIA, there are some great resources out there to check out that can give you a sense of how the industry is evolving and the types of opportunities that are available.

XY Planning Network is where I would send you to start, they have an awesome website with lots of resources on how to start your own firm. They also put out a weekly podcast with interviews of fee-only financial planning entrepreneurs (XYPN Radio).

Another fantastic resource is Michael Kitces' website (Nerd's Eye View). He is a thought leader in the fee-only RIA space and generates prolific, detailed content about various aspects of the planning industry, including how to start your own firm, pitfalls to avoid, business models to consider, etc. Kitces also has a weekly podcast (Financial Advisor Success) that is excellent fodder for prospective RIAs like you.

Feel free to PM me if you want to discuss further, always happy to talk.
I've spent a lot of time on Kitces' website! Those are great resources. I'll PM you, I feel like we are on the same path. Would really be nice to talk to someone thinking through similar thoughts.

closinggoalkeeper
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Re: Late 20's small business owner looking for career change

Post by closinggoalkeeper » Thu May 24, 2018 1:00 pm

FlyAF wrote:
Thu May 24, 2018 12:54 pm
Financial Planning basically IS sales. If you're bad at sales, how in the world are you going to convince someone to give you all of their money?
Yep, I know. I've done good enough at sales with my current business to make ends meet. I know a lot of planners rely on referral business, so that's one avenue. It's all about marketing and education. How do you tell someone that if they invest with you they may literally save hundreds of thousands of dollars without it getting too complicated? (Just a rhetorical question. One that I think through almost every day though.)

psteinx
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Re: Late 20's small business owner looking for career change

Post by psteinx » Thu May 24, 2018 1:06 pm

I think you're being naive.

Financial planning is a hard business, and to succeed, you'd very likely have to hustle.

The "close to $2 million" from family and friends is a drop in the bucket. A very small drop. And don't count your chickens even there, before they hatch.

How would your business thrive on referrals when you have essentially no core customers? Yes, at some point, successful financial planners, insurance salesmen, etc, can take their foot off the throttle to some extent on marketing and salesmanship, but that's generally after they've been doing it a long time and have a big book of business.

Jack FFR1846
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Re: Late 20's small business owner looking for career change

Post by Jack FFR1846 » Thu May 24, 2018 1:15 pm

Thinking of getting your family and friends to work with you, providing $2M in AUM and $20k in fees sounds exactly like where Edward Jones starts all it's prospects. Add to that the door to door knocking and attending all the little league games and all the churches and all the Rotary and Elks and American Legion meetings to become known as "that good guy" and you're on your way.

Read all about this (I did): http://kronstantinople.blogspot.com/p/e ... -saga.html
Bogle: Smart Beta is stupid

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greg24
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Re: Late 20's small business owner looking for career change

Post by greg24 » Thu May 24, 2018 1:36 pm

closinggoalkeeper wrote:
Thu May 24, 2018 12:13 pm
The product was a passion at first, but now I hate it.

---

I've realized that I love this even more. As boring as it sounds, I loved studying all the ETFs and funds available at Vanguard, Fidelity, and Charles Schwab. Building our IRA portfolios was a ton of fun, and I managed to diversify the entire portfolio for an average of 7 basis points of expenses
You now hate your first passion, maybe the same thing will happen with your second.

On a baseball site I frequent, a poster who used to work at MLB.com recently mentioned that everyone working there rooted against perfect games, no-hitters, etc., because it just created more work for them. I have to assume that nearly everyone working at MLB.com got a job there because they love baseball, and then they ended up rooting against great baseball events.

In the end, a job is a job and you only show up because they're paying you.

FlyAF
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Re: Late 20's small business owner looking for career change

Post by FlyAF » Thu May 24, 2018 1:52 pm

I have about 10-12 friends over the years that have tried their hands at CFP. Of them, 2 are still doing it and appear to be doing really well from it. All others have moved on in some form or fashion. It really is a lot of long hours, odd hours, of constant hustling for very little money for quite a few years. I always felt bad for them basically having to beg their friends and family to get on board so they could get started and felt even worse for the ones who actually did when their "guy" eventually throws in the towel. That whole industry just rubs me the wrong way. We'll offer you a job, but only after you rip off all your friends and family. No thanks.

SilverGirl
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Re: Late 20's small business owner looking for career change

Post by SilverGirl » Thu May 24, 2018 3:36 pm

Are you sure you really hate sales?

I always thought I did, and I did when I sold dumb stuff like makeup when I was younger. However now I own a preschool, and my job involves lots of sales, touring prospective families and getting them to enroll. The thing is, it doesn't feel the same when you believe in the product. When you aren't being fake or having to exaggerate anything, sales just becomes a conversation with someone, and when you have a service that can legitimately improve their lives, you get gratitude.


I am naturally an introvert, so the first few minutes of meeting any prospective customer isn't something I enjoy. However after I get to know them and their family a little bit, there is almost always something that intrigues me about them, or a piece of advice they are asking for that I can give, something that turns the conversation from a chore into an enjoyable experience. I think sales is something we hate more when we think we are being fake or the pressure is really high to sell (since my business is doing very well, I don't stress about the outcome of each visit with a new potential customer).

Golf maniac
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Location: Charlotte NC

Re: Late 20's small business owner looking for career change

Post by Golf maniac » Thu May 24, 2018 3:37 pm

You may want to look at getting your CFA and going that route of being an analyst. There are obviously firms in NY that hire, but there are also regional firms that may be in your area that hire. Talk to people in the industry, network, and research. You will find your niche.

mega317
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Re: Late 20's small business owner looking for career change

Post by mega317 » Thu May 24, 2018 5:14 pm

You want to help people get their expenses under 1%, and then you plan to charge even your family 1%?

OP: there are threads like this one periodically, you should search for some to read many posts that further support the comments already made in this one.
greg24 wrote:
Thu May 24, 2018 1:36 pm
In the end, a job is a job and you only show up because they're paying you.
Yikes. You know, some people like their jobs, and OP is looking for some support right now.

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