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Looking at becoming a financial planner in a few years?

Discussion in 'Financial Planning' started by hashkent, 8th Aug, 2009.

  1. hashkent

    hashkent Member

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    QLD
    Hi,

    I'm 23, and currently own a small Internet services company, and for about the last 18 months I've been wanting to get out of it and get into financial planning (yes that dirty word!).

    While the recession hasn't affected me or my business, I feel now is still not the right time to sell. Also if I was to sell my company, than I'd be having a hard time finding a job in my new field (at least for the moment). :)

    I've enrolled to do a "Bachelor of Business in Financial Planning" via Open Universities, with the degree being given by RMIT and also giving me RG146 compliance, only doing 2 units to start with to see how it affects my current work commitments.

    Once completed or near competition my plan to is sell my business, take a holiday (I haven't had one for several years) for a few weeks and than try and get a job with a small planning firm after I come back (either locally or moving towns), work there for a few years and possibly go into it on my own by partnering up with an accounting firm, or with a business partner (this is something I wish I had in my current business) or something like that but eventually do something for myself.

    Have I made the right choice with regards to degree (I know Griffith has a commerce based degree for "financial planning", but I didn't wish to relocate just yet and I'm unsure if this would fit in with my existing work commitments)? I did look at Diploma of Financial Services, but I've heard its not "really good enough", with the expected tighter regulation coming soon.

    What are peoples thoughts? I'd be 25-27 by the time this all happens, would clients or employers take me seriously for my age?
     
  2. AsxBroker

    AsxBroker Well-Known Member

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    Hi HashKent,

    What is your motivation for moving industries?

    The B Bus (Fin Plan) is best as it is a business degree with RG146 subjects. I would strongly suggest you look for work experience after completing FNP11, FNP21, FNP22 and FNP23.

    Most employers in the industry will re-imburse relevants studies.

    Cheers,

    Dan
     
  3. hashkent

    hashkent Member

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    Hi Dan

    Something new and challenging firstly. Also the industry I'm in will also require a lot of investment in the next 5-7 years in order for my company to keep up or at least compete commercially, something I'm not prepared to do nor have the financial resources to do it, without taking significant risks.

    Finance and investing also really fascinate me. The fact the average person/couple will earn between $1-3m in ones life time yet is likely to retire with only super, some cash savings and maybe some direct shares which will all run out before one dies is quite alarming, yet shows the industry for financial planning and wealth building hasn't peaked yet.

    I believe there are a lot of opportunities available for competent advisers who don't provide highly geared investment strategies which will ruin the lives of their clients should the market ever go down in a massive way like it did 18 months ago the same "market corrections" will happen again :)

    Advisers which can get their clients budgeting, living on less than they make and investing the rest can help their clients build wealth in a more substitutable way where the "market corrections" won't wipe out everything they gained and some.

    So it sounds like I made a good choice here. :)
     
  4. bigbuddha

    bigbuddha Well-Known Member

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    Brisbane, QLD
    Haskent,

    I would highly recommend doing economics. To many planners just don't have a good grasp of how economics works. Also read anything by Ben Graham, securities analysis is a must.

    One last tip, take a good look at the Austrian School of Economics. It'll keep you and your potential clients out of a lot of trouble.

    regards,
     
  5. hashkent

    hashkent Member

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    Cheers, I'll check both out :)
     
  6. TROM

    TROM Active Member

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    If the Kaplan current course in Financial planning is not up to scratch with the new changes. What other course would be worth doing, would you have to go tUni and study for your financial planning Degree plus what is the Income for a mature age student starting from scratch?

    I too am interested in Finance planning - What are the pitfalls of the job and what the main challenges.

    How do you find work for a company?
     
  7. hashkent

    hashkent Member

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    Bachelor of Business in Financial Planning from RMIT which you can do via Open Universities seems popular, as is the one from Griffith.

    Might be best to ask a financial planner that...

    But I think the main issue going forward is how financial planners and their firms are compensated. The Financial Planning Association seems to want advisers to charge fixed fees for advice, compared to a the different ways fees are charged now which can be confusing to investors (apparently).

    Its kind of like how you'll have some real estate agents who will charge a commission for the property and others which will charge a flat fee for example. Which will make sure you get the best return on your investment? The one doing a $5,500 fixed fee or the one getting 1-3% of $480,000? Which one will push harder for the sale at a higher price and greater return on your investment?

    The problem isn't about how fees are charged, but disclosure. How much does the adviser get for each recommendation etc...

    Just like any job I guess... For me, if I finish my degree, this will be my first "real" job so to speak. :)

    I have a feeling in 2 years time their will be lots of jobs available for financial planners!
     
  8. FinSpec

    FinSpec Member

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    15th Jun, 2009
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    Hi there,

    Have been financial planning here for quite some time, and from a young age as well, so I can give you some tips about my experiences that might help.

    As far as being a planner at a younger age, it's generally not an issue. If you know your stuff, treat your clients with respect and give them the solutions that they are after, generally you'll be ok. I've seen planners in their early 20's get great success, so it's not really a barrier. One thing, however, is that you have to know your limits. Don't profess to know something that you dont - you will get caught out eventually.

    As for how much you can earn as a junior, it all comes down to how good you are and where on the ladder you start. Many planners start out in admin or paraplanning, and that starts at around $45k for degree qualified, and goes up to about $70k with experience.

    Highlights and pitfals for the job? If you like helping people, and are prepared to fight for your clients, you'll have a good time. Subscribe to the bank way of doing things, you're going to struggle if you want the best for your clients becuase the bank is going to tell you what is best. I'm a HUGE fan of independence in financial planning. The other pitfals are the paperwork is a burden, and when things go wrong, your backside is on the line both legally and professionally. So, just like everything else, when things are good you may be apprecaited, but when things go wrong you often get the blame.

    The industry is going through some changes at the moment, and it certainly isn't a mature industry, so getting in and making your mark is still easy to do. As people get more educated about their money, the standards of the industry have to pick up to meet an inreasing demand for GREAT planners, not just guys that hand over brochures.

    And finally, yes - I have to agree that an understanding of economics will help you to serve your clients better. Knowing how capital expenditure is going to effect employment in certain sectors, and therefore consumer demand, interest rates, liquidity and investment markets is very useful for helping your clients steer clear of trouble, but also allows you to pinpoint where apoprtunities are going to be in the future.

    Happy studying and best of luck!

    FS