Becoming a Financial Advisor

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Topic Author
mchampse
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Becoming a Financial Advisor

Post by mchampse » Thu Apr 25, 2019 11:37 am

I'm at a crossroads in my life and thinking of what comes next. My own money is completely in Vanguard index funds that I rebalance every year. I've counseled many friends and family to do the same, but with mixed results. Sometimes it's just a matter of follow through. Sometimes they meet an advisor and its like who are you going to believe, a professional or your friend that manages his own money? So it occurs to me that there is probably a need for people who really could manage their own money, but need some hand holding and assurance that a "professional" is giving them that advice.

I'm reasonably financially secure so I wouldn't need to do it for the money and could charge accordingly. My thought was to offer my services for free to anyone under a certain asset threshold or income level and then offer my services at a reasonable cost on a fee-only basis to anyone with assets or income beyond that threshold.

Any feedback on the above? Is what I'm planning feasible? I know that there are compliance costs and such and I assume that I might have to work for an advisory firm that may or may not be thrilled by my plan. I live in California if that has any bearing on anything.

mouth
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Re: Becoming a Financial Advisor

Post by mouth » Thu Apr 25, 2019 11:45 am

subbed ... you're situation is my situation.

mega317
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Re: Becoming a Financial Advisor

Post by mega317 » Thu Apr 25, 2019 11:59 am

I think the barrier to entry which includes a years-long apprenticeship is too high for this. And then it takes a lot of work to build a client base. Do you want to put in that work in order to give people vanilla advice for little to no money?

coachd50
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Re: Becoming a Financial Advisor

Post by coachd50 » Thu Apr 25, 2019 12:00 pm

And when your "clients" lose money?

Jack FFR1846
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Re: Becoming a Financial Advisor

Post by Jack FFR1846 » Thu Apr 25, 2019 12:21 pm

What do people want to know?

How much will I need to retire?

you: Figure out how much you spend now. Multiply by 25. That's how much you need.

What should I invest in?

you: 3 fund portfolio. Next?

What should my AA be?

you: Your age in bonds. The rest in Equity. If you want international, 25% of equity.

you: That'll be $100 please.
Bogle: Smart Beta is stupid

Topic Author
mchampse
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Re: Becoming a Financial Advisor

Post by mchampse » Thu Apr 25, 2019 12:21 pm

mega317 wrote:
Thu Apr 25, 2019 11:59 am
I think the barrier to entry which includes a years-long apprenticeship is too high for this. And then it takes a lot of work to build a client base. Do you want to put in that work in order to give people vanilla advice for little to no money?
The little to no money isn’t a concern for me, though the apprenticeship is a good point.

Topic Author
mchampse
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Re: Becoming a Financial Advisor

Post by mchampse » Thu Apr 25, 2019 12:24 pm

Jack FFR1846 wrote:
Thu Apr 25, 2019 12:21 pm
What do people want to know?

How much will I need to retire?

you: Figure out how much you spend now. Multiply by 25. That's how much you need.

What should I invest in?

you: 3 fund portfolio. Next?

What should my AA be?

you: Your age in bonds. The rest in Equity. If you want international, 25% of equity.

you: That'll be $100 please.
As I noted in my original post, I’ve counseled lots of my friends with mixed results. This would be an opportunity to help more people. Income is not a big concern for me.

bondsr4me
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Re: Becoming a Financial Advisor

Post by bondsr4me » Thu Apr 25, 2019 12:25 pm

Doing financial planning and investment advice can be very rewarding for both you (and I’m not talking about money) and your clients.
What you are suggesting sounds reasonable. It will take time, money and effort on your part.
Going the “fee only” route is the honest way to go (just like Vanguard).
Always treat others the same way you would treat Jack Bogle if he was your client.
Good Luck to you.

coachd50
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Re: Becoming a Financial Advisor

Post by coachd50 » Thu Apr 25, 2019 12:25 pm

And when they lose money.....

bondsr4me
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Re: Becoming a Financial Advisor

Post by bondsr4me » Thu Apr 25, 2019 12:27 pm

coachd50 wrote:
Thu Apr 25, 2019 12:25 pm
And when they lose money.....
You advise them just as Vanguard/Bogleheads do......Stay the course.

mega317
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Re: Becoming a Financial Advisor

Post by mega317 » Thu Apr 25, 2019 12:39 pm

mchampse wrote:
Thu Apr 25, 2019 12:24 pm
This would be an opportunity to help more people.
Which people? You are going to have to find them. You can't just put a sign on the door that says free financial advice. It's not a soup kitchen.

coachd50
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Re: Becoming a Financial Advisor

Post by coachd50 » Thu Apr 25, 2019 12:45 pm

bondsr4me wrote:
Thu Apr 25, 2019 12:27 pm
coachd50 wrote:
Thu Apr 25, 2019 12:25 pm
And when they lose money.....
You advise them just as Vanguard/Bogleheads do......Stay the course.

So then, what is the purpose?
My point is that the underlying principle the OP is highlighting is the behavioral phenomenon where people don't respect/value information that seems simple or free. However that is exactly what the OP seems to be proposing to some degree here.

My two cents, just counsel them to read/discover on their own. I really don't see much of an upside here, particularly because the OP seems to feel as if he would be doing people "a favor". Hence my question "When they lose money...."

mega317
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Re: Becoming a Financial Advisor

Post by mega317 » Thu Apr 25, 2019 12:48 pm

coachd50 wrote:
Thu Apr 25, 2019 12:45 pm
the behavioral phenomenon where people don't respect/value information that seems simple or free.
I gotta say as someone who spends most of the day giving people information that is often not simple or free, they don't respect that either.

MittensMoney
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Re: Becoming a Financial Advisor

Post by MittensMoney » Thu Apr 25, 2019 12:52 pm

Give it a go. There was a post a few days ago about how easy it is to get the Series 65 license, so you can hang your own shingle as an RIA doing that. Unsure what the start-up and ongoing regulatory costs are as an RIA, but looking at small firms on https://www.adviserinfo.sec.gov/IAPD/Co ... earch.aspx I don't think the regulatory filings look that complicated.

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White Coat Investor
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Re: Becoming a Financial Advisor

Post by White Coat Investor » Thu Apr 25, 2019 12:56 pm

mega317 wrote:
Thu Apr 25, 2019 12:48 pm
coachd50 wrote:
Thu Apr 25, 2019 12:45 pm
the behavioral phenomenon where people don't respect/value information that seems simple or free.
I gotta say as someone who spends most of the day giving people information that is often not simple or free, they don't respect that either.
I've experienced this as well. I charge $5K to fly across the country to give a talk. Dozens to hundreds show up and thank me profusely. Then I give the same talk for free at my local alma mater and perhaps 25/400 medical students show up. Something about "a prophet in his own country" maybe?

But yes, I agree that paying more does make you pay a little more attention and value the information a bit more even if it is the same information. That actually affected how I priced one of my products, as silly as it sounds, I thought it would do more overall good (although admittedly more good per buyer for fewer buyers) at a higher price.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course

smitcat
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Re: Becoming a Financial Advisor

Post by smitcat » Thu Apr 25, 2019 1:11 pm

mchampse wrote:
Thu Apr 25, 2019 12:21 pm
mega317 wrote:
Thu Apr 25, 2019 11:59 am
I think the barrier to entry which includes a years-long apprenticeship is too high for this. And then it takes a lot of work to build a client base. Do you want to put in that work in order to give people vanilla advice for little to no money?
The little to no money isn’t a concern for me, though the apprenticeship is a good point.
Perhaps do the same by teaching it at a high school or college course - pay is likely minimal and their is no apprenticeship.

Thick Planchet
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Re: Becoming a Financial Advisor

Post by Thick Planchet » Thu Apr 25, 2019 1:33 pm

It sounds like you are a "teacher." Go for it. You'll figure it out as you go.

Fallible
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Re: Becoming a Financial Advisor

Post by Fallible » Thu Apr 25, 2019 1:38 pm

coachd50 wrote:
Thu Apr 25, 2019 12:25 pm
And when they lose money.....
....they are apt to blame the advisor for losing it. A reason some investors use advisors is because they then have someone to blame if things go wrong.

OP, this piece by Michael Kitces on "Do Clients Hire Advisors For Their Experties, Or Simply to Pass The Buck on Blame?" may be of interest:

https://www.kitces.com/blog/steffel-fin ... nsibility/
"John Bogle has changed a basic industry in the optimal direction. Of very few can this be said." ~Paul A. Samuelson

skepticalobserver
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Re: Becoming a Financial Advisor

Post by skepticalobserver » Thu Apr 25, 2019 1:46 pm

Getting a fee for babysitting AUM is the nearest thing to a tollboth. Go for it. Some of us actually have do something to get paid.


Oh, and WC Fields had some thoughts on this...
mchampse wrote:
Thu Apr 25, 2019 11:37 am
My thought was to offer my services for free to anyone under a certain asset threshold or income level and then offer my services at a reasonable cost on a fee-only basis to anyone with assets or income beyond that threshold.

Topic Author
mchampse
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Joined: Mon Feb 26, 2007 1:45 am

Re: Becoming a Financial Advisor

Post by mchampse » Thu Apr 25, 2019 1:50 pm

coachd50 wrote:
Thu Apr 25, 2019 12:45 pm
bondsr4me wrote:
Thu Apr 25, 2019 12:27 pm
coachd50 wrote:
Thu Apr 25, 2019 12:25 pm
And when they lose money.....
You advise them just as Vanguard/Bogleheads do......Stay the course.

So then, what is the purpose?
My point is that the underlying principle the OP is highlighting is the behavioral phenomenon where people don't respect/value information that seems simple or free. However that is exactly what the OP seems to be proposing to some degree here.

My two cents, just counsel them to read/discover on their own. I really don't see much of an upside here, particularly because the OP seems to feel as if he would be doing people "a favor". Hence my question "When they lose money...."
Great point. I also realized that I will be competing with a lot of other advisors who also offer "free" advice and how do I differentiate myself by telling people my advice actually is free and I'm not trying to sell you products that will generate a commission for myself. I guess that becomes a question for this board...how can I market myself so that people get that I'm giving advice that will benefit them and not me.

TheMadEph
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Re: Becoming a Financial Advisor

Post by TheMadEph » Thu Apr 25, 2019 1:52 pm

I am planning on doing the exact same, OP. Good luck. Plan is to launch (beta/private) later this year for a very limited group. Then quit full time job sometime early next year.
I will be charging all clients however, because I do think that people will (i) be more apt to follow advice if they are paying for it, (ii) I want them to continually evaluate whether i am adding value, and (iii) I am concerned I won't do as a good job if I don't feel like I need to "deliver". I don't want that many clients anyway, since this is not about making money - its about staying busy, staying helpful, exploring my interests. So I agree with some of the other commenters about charging.
I also think that a lot of people who are "not interested" in finances will not do the reading that you point them too. I expect that a number of my clients will want to be completely hands off, though I will offer to walk them through everything (even if my teaching them results in them dropping me as an advisor, or scaling back usage). But you will need some manner of getting clients - unless you are already networking (which has been my approach). Also, my partner (and various siblings) are in high income professions and i expect a substantial number of clients will come through those contacts.

coachd50
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Re: Becoming a Financial Advisor

Post by coachd50 » Thu Apr 25, 2019 1:52 pm

Fallible wrote:
Thu Apr 25, 2019 1:38 pm
coachd50 wrote:
Thu Apr 25, 2019 12:25 pm
And when they lose money.....
....they are apt to blame the advisor for losing it. A reason some investors use advisors is because they then have someone to blame if things go wrong.

OP, this piece by Michael Kitces on "Do Clients Hire Advisors For Their Experties, Or Simply to Pass The Buck on Blame?" may be of interest:

https://www.kitces.com/blog/steffel-fin ... nsibility/
That is my point. The OP seems to think that his gesture will be received as a magnanimous one, and that relationships forged with those counseled will be live enrichening. I am just pointing out the very real possibility that things will get sticky in a downturn.

skepticalobserver
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Re: Becoming a Financial Advisor

Post by skepticalobserver » Thu Apr 25, 2019 1:54 pm

Getting a fee for babysitting AUM is the nearest thing to a tollboth. Go for it. Some of us actually have do something to get paid.


Oh, and WC Fields had some thoughts on this...
mchampse wrote:
Thu Apr 25, 2019 11:37 am
My thought was to offer my services for free to anyone under a certain asset threshold or income level and then offer my services at a reasonable cost on a fee-only basis to anyone with assets or income beyond that threshold.

Fields also nailed the annuity thing in "It's a Gift."

Topic Author
mchampse
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Re: Becoming a Financial Advisor

Post by mchampse » Thu Apr 25, 2019 1:55 pm

TheMadEph wrote:
Thu Apr 25, 2019 1:52 pm
I am planning on doing the exact same, OP. Good luck. Plan is to launch (beta/private) later this year for a very limited group. Then quit full time job sometime early next year.
I will be charging all clients however, because I do think that people will (i) be more apt to follow advice if they are paying for it, (ii) I want them to continually evaluate whether i am adding value, and (iii) I am concerned I won't do as a good job if I don't feel like I need to "deliver". I don't want that many clients anyway, since this is not about making money - its about staying busy, staying helpful, exploring my interests. So I agree with some of the other commenters about charging.
I also think that a lot of people who are "not interested" in finances will not do the reading that you point them too. I expect that a number of my clients will want to be completely hands off, though I will offer to walk them through everything (even if my teaching them results in them dropping me as an advisor, or scaling back usage). But you will need some manner of getting clients - unless you are already networking (which has been my approach). Also, my partner (and various siblings) are in high income professions and i expect a substantial number of clients will come through those contacts.
My thought was to only offer free services to people who otherwise couldn't afford to pay a fee-only advisor. Above a certain income or asset level, I would charge.

coachd50
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Re: Becoming a Financial Advisor

Post by coachd50 » Thu Apr 25, 2019 1:56 pm

mchampse wrote:
Thu Apr 25, 2019 1:50 pm
coachd50 wrote:
Thu Apr 25, 2019 12:45 pm
bondsr4me wrote:
Thu Apr 25, 2019 12:27 pm
coachd50 wrote:
Thu Apr 25, 2019 12:25 pm
And when they lose money.....
You advise them just as Vanguard/Bogleheads do......Stay the course.

So then, what is the purpose?
My point is that the underlying principle the OP is highlighting is the behavioral phenomenon where people don't respect/value information that seems simple or free. However that is exactly what the OP seems to be proposing to some degree here.

My two cents, just counsel them to read/discover on their own. I really don't see much of an upside here, particularly because the OP seems to feel as if he would be doing people "a favor". Hence my question "When they lose money...."
Great point. I also realized that I will be competing with a lot of other advisors who also offer "free" advice and how do I differentiate myself by telling people my advice actually is free and I'm not trying to sell you products that will generate a commission for myself. I guess that becomes a question for this board...how can I market myself so that people get that I'm giving advice that will benefit them and not me.
By directing them to sites such as this, books written by people who share your philosophy.

Lets face it, the financial advice most that frequent this board adhere to can be put in a pamphlet as opposed to a book.
How can one in good conscious create a business plan to disseminate a pamphlet worth of thoughts and theories that aren't even original in nature?

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willthrill81
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Re: Becoming a Financial Advisor

Post by willthrill81 » Thu Apr 25, 2019 1:56 pm

mchampse wrote:
Thu Apr 25, 2019 12:24 pm
Jack FFR1846 wrote:
Thu Apr 25, 2019 12:21 pm
What do people want to know?

How much will I need to retire?

you: Figure out how much you spend now. Multiply by 25. That's how much you need.

What should I invest in?

you: 3 fund portfolio. Next?

What should my AA be?

you: Your age in bonds. The rest in Equity. If you want international, 25% of equity.

you: That'll be $100 please.
As I noted in my original post, I’ve counseled lots of my friends with mixed results. This would be an opportunity to help more people. Income is not a big concern for me.
That's better than my track record, which hasn't been mixed much at all. Friendly advice I've offered and at times even been solicited for has been robustly ignored nearly every time.

I believe that your heart is in the right place. I've actually considered a similar route myself post retirement, but the problem you're likely to encounter is the same as that of most consultants: hard work on your part followed by the client doing something else entirely.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

Socal77
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Re: Becoming a Financial Advisor

Post by Socal77 » Thu Apr 25, 2019 1:59 pm

Have you thought about working for a company that best approximates the Boglehead philosophy like Betterment?

aristotelian
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Re: Becoming a Financial Advisor

Post by aristotelian » Thu Apr 25, 2019 2:00 pm

OP,
I posted a similar idea and got some good feedback, not all positive. The big problem is getting certified and maintaining insurance, compliance, etc. The only way to get CFP certification is to work in the industry, which I am unwilling to do.

viewtopic.php?t=214368

"Financial Coaching" is one possible model that might work.

https://www.kitces.com/blog/financial-c ... ecome-one/

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FlyAF
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Re: Becoming a Financial Advisor

Post by FlyAF » Thu Apr 25, 2019 2:02 pm

TheMadEph wrote:
Thu Apr 25, 2019 1:52 pm
But you will need some manner of getting clients - unless you are already networking (which has been my approach). Also, my partner (and various siblings) are in high income professions and i expect a substantial number of clients will come through those contacts.
Ah, the 'ole pester the friends and family for contacts. The first play in every FA's playbook and every young college grad that gets duped into working for EJ, ML, et all.

Sounds delightful.

spectec
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Re: Becoming a Financial Advisor

Post by spectec » Thu Apr 25, 2019 2:33 pm

skepticalobserver wrote:
Thu Apr 25, 2019 1:54 pm
Getting a fee for babysitting AUM is the nearest thing to a tollboth. Go for it. Some of us actually have do something to get paid.


Oh, and WC Fields had some thoughts on this...
mchampse wrote:
Thu Apr 25, 2019 11:37 am
My thought was to offer my services for free to anyone under a certain asset threshold or income level and then offer my services at a reasonable cost on a fee-only basis to anyone with assets or income beyond that threshold.

Fields also nailed the annuity thing in "It's a Gift."
Glad you clarified that WC Fields reference. Whenever I hear his name, I usually think of the phrase "...never give a sucker an even break, or smarten up a chump", which I've always assumed was the motto of so many in the FA field.
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. - Will Rogers

Topic Author
mchampse
Posts: 225
Joined: Mon Feb 26, 2007 1:45 am

Re: Becoming a Financial Advisor

Post by mchampse » Thu Apr 25, 2019 3:20 pm

aristotelian wrote:
Thu Apr 25, 2019 2:00 pm
OP,
I posted a similar idea and got some good feedback, not all positive. The big problem is getting certified and maintaining insurance, compliance, etc. The only way to get CFP certification is to work in the industry, which I am unwilling to do.

viewtopic.php?t=214368

"Financial Coaching" is one possible model that might work.

https://www.kitces.com/blog/financial-c ... ecome-one/
My question about financial coaching is how many people actually change their habits and actually keep them changed? While well meaning, I suspect that financial coaching has some similarities to the diet industry.

aristotelian
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Re: Becoming a Financial Advisor

Post by aristotelian » Thu Apr 25, 2019 3:31 pm

mchampse wrote:
Thu Apr 25, 2019 3:20 pm
My question about financial coaching is how many people actually change their habits and actually keep them changed? While well meaning, I suspect that financial coaching has some similarities to the diet industry.
If someone is willing to pay for the advice, they should be able to follow it. More like a personal trainer than a fad diet.

Greenman72
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Re: Becoming a Financial Advisor

Post by Greenman72 » Thu Apr 25, 2019 5:29 pm

mchampse wrote:
Thu Apr 25, 2019 12:21 pm
mega317 wrote:
Thu Apr 25, 2019 11:59 am
I think the barrier to entry which includes a years-long apprenticeship is too high for this. And then it takes a lot of work to build a client base. Do you want to put in that work in order to give people vanilla advice for little to no money?
The little to no money isn’t a concern for me, though the apprenticeship is a good point.
What about losing money? Is that important?
What about the $5k per year in registration and compliance costs? Is that not important?

If you’re charging money, you have to register. And that costs money. Either do it for free, or charge plenty of money.

AerialWombat
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Re: Becoming a Financial Advisor

Post by AerialWombat » Thu Apr 25, 2019 6:22 pm

Greenman72 wrote:
Thu Apr 25, 2019 5:29 pm
Either do it for free, or charge plenty of money.
Based on the other two threads about this same thing this week, this right here is the same conclusion I’ve arrived at. Good advice.
“Life doesn’t come with a warranty.” -Michael LeBoeuf

zlandar
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Re: Becoming a Financial Advisor

Post by zlandar » Thu Apr 25, 2019 6:51 pm

mchampse wrote:
Thu Apr 25, 2019 11:37 am
Sometimes they meet an advisor and its like who are you going to believe, a professional or your friend that manages his own money? So it occurs to me that there is probably a need for people who really could manage their own money, but need some hand holding and assurance that a "professional" is giving them that advice.
I think you are going to be disappointed trying to convince the hand holders. Many want unreasonable assurances and will go for the FA who sweet-talks them with things they want to hear.

coachd50
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Re: Becoming a Financial Advisor

Post by coachd50 » Thu Apr 25, 2019 7:05 pm

zlandar wrote:
Thu Apr 25, 2019 6:51 pm
mchampse wrote:
Thu Apr 25, 2019 11:37 am
Sometimes they meet an advisor and its like who are you going to believe, a professional or your friend that manages his own money? So it occurs to me that there is probably a need for people who really could manage their own money, but need some hand holding and assurance that a "professional" is giving them that advice.
I think you are going to be disappointed trying to convince the hand holders. Many want unreasonable assurances and will go for the FA who sweet-talks them with things they want to hear.
Not to mention the awkwardness that will undoubtedly come when the market slows down/drops/tumbles. Because remember, this is you counseling other bogleheads. This is you "arm twisting" people to conform to the boglehead mentality.

JoeRetire
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Re: Becoming a Financial Advisor

Post by JoeRetire » Thu Apr 25, 2019 7:22 pm

mchampse wrote:
Thu Apr 25, 2019 11:37 am
So it occurs to me that there is probably a need for people who really could manage their own money, but need some hand holding and assurance that a "professional" is giving them that advice.
There is a market for this. It is serviced by fee-only fiduciary financial planners and advisors.
I'm reasonably financially secure so I wouldn't need to do it for the money and could charge accordingly. My thought was to offer my services for free to anyone under a certain asset threshold or income level and then offer my services at a reasonable cost on a fee-only basis to anyone with assets or income beyond that threshold.
Okay. I can understand the appeal of "free".
Why would folks above the threshold want you rather than other advisors? Would you compete based on low cost?
Is what I'm planning feasible?
It's feasible. Particularly if you lots of time to learn and find a client base without relying on an income.
I know that there are compliance costs and such and I assume that I might have to work for an advisory firm that may or may not be thrilled by my plan.
Yup, there is that.

Depending on the credentials you choose, you might not have to work for a firm. You could just hang out a shingle.

TheMadEph
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Re: Becoming a Financial Advisor

Post by TheMadEph » Fri Apr 26, 2019 11:55 am

FlyAF wrote:
Thu Apr 25, 2019 2:02 pm
TheMadEph wrote:
Thu Apr 25, 2019 1:52 pm
But you will need some manner of getting clients - unless you are already networking (which has been my approach). Also, my partner (and various siblings) are in high income professions and i expect a substantial number of clients will come through those contacts.
Ah, the 'ole pester the friends and family for contacts. The first play in every FA's playbook and every young college grad that gets duped into working for EJ, ML, et all.

Sounds delightful.
It's only pestering if you need the clients - if the clients need you, it's not pestering, its providing a service.
The whole point is that I am doing this after I have made all my money and I don't need the money. (Not to mention we can live super comfortably on my wife's high income, even if I didn't work at all). That was in the top part of my comment, which you skipped over, so that you could make a point reflecting your unfortunate personal experience that wasn't germane to my point (or OP's goal). The point was that if OP wants to help people who don't know/care about financial planning, how is he going to find those people to offer his services? I have plenty of contacts who, when i mention what my plan is for after my early retirement, indicate that they would want to be a client. Obviously a lot of those will dissappear when I actually start my practice, but... oh well - I don't care cause i don't want to be overworked anyway.... If I wanted to make lots of money and work 40+ hours a week I would stay at my current role.

Greenman72
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Re: Becoming a Financial Advisor

Post by Greenman72 » Fri Apr 26, 2019 12:01 pm

mchampse wrote:
Thu Apr 25, 2019 11:37 am
...I might have to work for an advisory firm that may or may not be thrilled by my plan.
Boy, you can say that again.

"Hi, my name is mchampse, and I'd like to come to work at your RIA. My business plan is to give away our principal product (which is our knowledge) for free to half the clients. Then for the other half, I plan to price my services in a way that will not be profitable for neither me nor the company. Your firm will most likely lose money if you hire me. When can we set up an interview?"

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Dialectical Investor
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Re: Becoming a Financial Advisor

Post by Dialectical Investor » Fri Apr 26, 2019 12:45 pm

mchampse wrote:
Thu Apr 25, 2019 11:37 am

Sometimes they meet an advisor and its like who are you going to believe, a professional or your friend that manages his own money? So it occurs to me that there is probably a need for people who really could manage their own money, but need some hand holding and assurance that a "professional" is giving them that advice.
Part of being a professional is telling a good story and selling a good image. A lot of people aren't going to find your investing philosophy compelling at face value, and they might even be offended to hear it, so you would need to appeal to people in different ways. Oftentimes the facts of the situation don't matter as much as you think, which can mean trouble for you if the facts are on your side and you're overly reliant on them.

mernova
Posts: 23
Joined: Thu Apr 21, 2011 9:38 am

Re: Becoming a Financial Advisor

Post by mernova » Fri Apr 26, 2019 1:20 pm

If your thoughts are to help others there are many organizations that would jump at the chance to get these free services.

My spouse is in the health industry, and has been coaching individuals on how to improve their health. Her clients pay her to not only teach them but she drives them to be accountable to her. She also will spend many hours working/volunteering with different organizations to help those that are less fortunate than we are. Ex. last night she was with a women's group where the women were once homeless and are now getting back on their feet.

If creating an income is not a concern, seek out these groups, they will listen the most.

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mchampse
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Re: Becoming a Financial Advisor

Post by mchampse » Fri Apr 26, 2019 2:03 pm

Greenman72 wrote:
Fri Apr 26, 2019 12:01 pm
mchampse wrote:
Thu Apr 25, 2019 11:37 am
...I might have to work for an advisory firm that may or may not be thrilled by my plan.
Boy, you can say that again.

"Hi, my name is mchampse, and I'd like to come to work at your RIA. My business plan is to give away our principal product (which is our knowledge) for free to half the clients. Then for the other half, I plan to price my services in a way that will not be profitable for neither me nor the company. Your firm will most likely lose money if you hire me. When can we set up an interview?"
:) :) :)

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