Financial Planner as a viable profession?

[dennis in se pa]

Real estate has been great for awhile, but it is very slow now so I am considering a career change. Anyone out there a financial planner? Would you recommend this profession to a friend? Your thoughts and advise are appreciated. How difficult are the tests?

[legion]

I think many of the same things that are hurting RE are also hurting financial planners--namely no one has any money right now. Many of the firms that employ financial planners are laying them off by the tens of thousands.

That said, this type of climate does present an opportunity. I suspect many people who still have some money and lost a lot in what they were told were "conservative" investments are fed-up with their current financial planners and are looking for a move. This would be a great time for someone with integrity to establish themselves. Unfortunately, it will take a lot of time and hard work now and the payoff won't be for several years. (You might make nothing or almost nothing until the market rebounds depending on how your compensation works.)

[turbo6bar]

Yeah, but how many folks will be willing to listen to the type of financial planner (pessimist) who would have steered folks clear of the housing and equity disaster? I remember in late 1999 talking to an adviser at the local bank about equities. He wanted me to put funds in relatively safe growth companies and avoid the high flying tech stocks. I would have nothing of it and lost my ass in 2000. I eventually learned a valuable lesson, but again, who wants to take advice from an overly-cautious, if not pessimistic financial planner?

Nevertheless, there's always demand for honest, knowledgeable professionals no matter the field.

On the other hand, why jump from one sinking ship to another? If you can survive in this RE market, you'll never be hungry. Have you considered transitioning towards the distressed RE side? jurgen

[pwd72s]

Originally Posted by dennis in se pa

Real estate has been great for awhile, but it is very slow now so I am considering a career change. Anyone out there a financial planner? Would you recommend this profession to a friend? Your thoughts and advise are appreciated. How difficult are the tests?

Just don't tell folks that "the price of real estate always goes up"...

[dennis in se pa]

The price of real estate does always go up.........eventually.

[Porsche-O-Phile]

It doesn't "always" go up. It goes up and down - and trends upwards over time tracking inflation, like everything else.

I get what you're saying and sorry to split hairs, but the world "always" means just that - always. At all times. This is not a true statement and an incorrect use of the word.

Generally speaking, if you hold MOST things long enough, you'll make money (in terms of absolute dollars, not necessarily in terms of inflation-adjusted dollars) for them.

[MRM]

Being a financial planner can be a good career. I have a friend who was asked to office with a credit union in order to provide financial service advise to the credit union members. He did quite well. Getting into that kind of situation is possible, but you have to work at it.

If you are thinking of financial planning as a career, you have to be able to answer a couple of questions correctly before anyone will hire you. First, how are going to get paid - hourly or as a percentage of trades, by commissions on products you sell, or a percentage of the portfolio you manage? Second, what are you giving the person for the money that they can't do themselves or can't get anywhere else. Third, are you getting into financial planning only because your old career isn't working anymore? And finanally the classic question of are you rich? If so, why are you asking to manage someone else's money instead of your own, if not, why should someone trust their money to you?

If you can successfully answer those questions, you enjoy the work, and you have access to clients, you'll do well.

[the]

It can be a good career. BUT, like anything, it is at it's core a sales job. You have to be a great salesman.

The way you make money in it is by building up a book of business/clients, and getting their funds under your management control.

When you do that, your career becomes very secure and you become a very hot commodity. I know a couple of guys who are "Financial Advisors" who built up nice books at one of the big brokerages. They were recruited and are going to another brokerage. The are getting signing bonuses of between $600K and over $1 milllion (paid out over time).

You gotta be a people person, and you have to be able to sell.

[Zeke]

The last 2 posts nailed in IMHO. It takes time. So does real estate, but you can get lucky in RE and some out of the blocks with some listings and some sales in the right time period. But, overall, both professions have to be nurtured.

I'd just go get a job at a bank if you can find one. Good launching pad.

[Vintage Racer]

I retired early as a financial planner/money manager.

You just need to find 100 people that will give you $1M to invest (don't waste your time with much less). It helps if you time it so that a President like Ronald Reagan is elected and lowers tax rates while providing an economic environment for increased productivity.

After reading the recent newspaper headlines, I'd recommend being a tax lawyer or criminal lawyer. It is true: "Crime pays; ask a lawyer".