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looking to start out as an independent financial planner

Discussion in 'Financial Planning' started by whitgr, 1st Jul, 2009.

  1. whitgr

    whitgr Member

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    3rd Jun, 2009
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    Location:
    Sydney
    I am 34, having completed B.Comm (Econ & Fin), Grad Dip in Applied Finance and Investment with Kaplan (formerly Securities Institute when I did it) and currently enrolled in subject 2 of the Diploma in Financial Planning with Pinnacle and am looking to move into a role as an independent financial planner (i.e. starting up my own business upon completion of the Diploma in Financial Planning.

    I have been working in corporate & institutional lending and securitisation for my work career so far

    I am a little unsure about going out on my own as an independent financial planner, as I am not able to see how I would obtain clients (i.e. no referral source) as I am essentially just starting as a Financial Planner.

    Any help or links to websites would be great?
     
  2. AsxBroker

    AsxBroker Well-Known Member

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    Welcome Whitgr,

    Are you going to start your own licensee or use an existing licensee?

    Ok, if you have no referral source your not going to get clients. You'll have to work on how you will get potential clients. Also what are you going to do for clients? How are you going to help them and also think about the fee structure you are going to use.

    Cheers,

    Dan
     
  3. Andrew Newman

    Andrew Newman Well-Known Member

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    Hi Whitgr

    My thoughts would be to work for a financial services company for at least 2 years (find a company that has similar values to yourself), learn as much as you can from advisers with greater experience and when you are ready, then start your own business.

    Note, as you are working and earning an income, you can be planning your business venture in your spare time.

    Cheers
     
  4. Chris C

    Chris C Well-Known Member

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    Part of every business is sales and marketing. It doesn't matter how good your product is, if you haven't got a way to let people know about it your not going to sell anything.

    So I'd be rephrasing the question to, how do current financial planners get most of their clients?
     
  5. whitgr

    whitgr Member

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    That is probably a better way to phrase what I am seeking, how do financial planners obtain their clients?

    I understand that a lot of it is by referral, holding seminars, linking up with accounting firms

    any other ideas?
     
  6. greygoose

    greygoose Member

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    if you try to start a financial planning business from complete scratch with no leads or existing clients, you will be eating beans on toast for the next 5 years if you don't go bankrupt.

    solution = buy an existing client base.

    due to the fact that client base prices are based on a multiple of earnings, and earnings are generally down anywhere between 20-50% due to significant drop in investment values, your going to be getting very good value in this market
     
  7. Chris C

    Chris C Well-Known Member

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    I'm a massive fan of online marketing streams, for a number of reasons. Comparatively cheap, very relevant advertising targeting, easy and accurate tracking of ROI, and geographical targeting. In terms of bang for your buck I don't think you can get any better when it comes to advertising.

    Though I may be biased because its closely related to my profession.

    :D
     
    Last edited by a moderator: 9th Jul, 2009
  8. Dolfinwise

    Dolfinwise Well-Known Member

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    I think the Beans on toast suggestion is a bit generous. I think toast would be a luxury starting a financial planning business with no clients or referral sources.

    In order to be taken seriously by clients one needs professional premises, software, IT systems, PI Insurance for starters. The few independent licensees will want at least $30,000p.a. to provide a you with a proper authority. I'd suggest you will need a least $100,000 of income to cover costs before you earn a cent.

    The barrier to entry in financial planning is now extremely high. You will need several years of experience under your belt to avoid making career ruining mistakes. Once you have the experience then buying a client base is the best solution to have immediate advice opportunities.

    Good Luck

    Jason Bragger
     
  9. TROM

    TROM Active Member

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    17th Jul, 2006
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    Location:
    WA
    Hi I am to interested in learning about financial plannning.

    What suggestions does anyone have regarding what I should study.

    I am currently working full time at the moment in the building industry as a project manager. Though not sure if this is the career for me.

    Would like some advice on what is the starting salary for a mature age person 40yrs of age, has some relevant experience with property and shares.

    Though no formal qualifications - I was thinking about learning from AMP training are they any good. What reasonable salary could you start on and where could get a job to get experience etc, etc.

    Any thoughts or advice please

    Also what are the attributues that you need in this type of business. Do you have to be quite good with mathematics or just be able to talk and sell your products?

    Cheers for the help as I am quite seriously interested in changing my career.

    Thanks