Join our investing community

Starting own Risk Advice Business

Discussion in 'Financial Planning' started by Megs, 25th Jan, 2010.

  1. Megs

    Megs Member

    Joined:
    26th Sep, 2009
    Posts:
    11
    Location:
    Canberra
    Hi there,

    I have been working in the financial planning industry for nearly 4 years with my ultimate goal being to work as a financial planner. I'm currently working in small firm where I am exposed to both admin and paraplanning and am looking to move into a client-facing "associate adviser" type role soon (risk business only). It's only been in the last 6 months that I have been exposed properly to the risk management side of planning and discovered something that I am really passionate about. My long term (or maybe not so long term!) goal is to work as an independent risk advisor, concentrating almost solely on risk business.

    I'd thought I'd put a post out there to see if anyone had any useful hints, comments or suggestions regarding this idea. Is it possible to be an idependent risk advisor? Or, more importantly, if I wanted to work for myself do you think I could raise enough revenue to pay the dealer group fees necessary to become an authorised representative? If so, does anyone have any suggestions for a dealer group that is willing to support a new advisor in the business?

    At the moment I really am just in the planning stages, however want to make sure I'm heading in the right direction and know what will be ahead of me in the future...

    If there are any specialist risk advisors out there I would love to hear from you! Would also appreciate any other comments regarding running a small business etc and working for yourself rather than for an organisation??

    Thanks,

    Megs
     
  2. Johny_come_lately

    Johny_come_lately Well-Known Member

    Joined:
    1st Jul, 2009
    Posts:
    703
    Location:
    SE Queensland
    Hi Megs

    I can only tell you about my personal experience. Years ago when I first started investing, my financial planner asked me 6 questions. The answers to these questions were to evaluate my 'risk profile'. At no time was monetary values proposed like; You might lose 50% or $50,000.

    Given the choice, I would take the minimum risk for the outcome I desired.

    Nowadays, software is more significant ei. IFA.COM risk evaluator, But this is only backtesting data.

    How can you make a business out of predicting the future? I'm very interested.



    Johny.
     
  3. Megs

    Megs Member

    Joined:
    26th Sep, 2009
    Posts:
    11
    Location:
    Canberra
    Thanks Johny, although what I meant by risk advisor was an insurance specialist. Industry term for insurance planning is "risk management". I didn't actually realise that nowhere in my post did I actually use the word "insurance"!!
     
  4. jdf81

    jdf81 Member

    Joined:
    28th Oct, 2009
    Posts:
    20
    Location:
    Mornington Peninsula, VIC
    I'm not advising yet, but I think it's vital to setup a referral network if you want to be successful. Try to build up some relationships with local accountants, mortgage brokers etc. Of course, this may involve paying them a referral commission, but it will probably be worth it if they provide you withe enough business.

    There are businesses out there that do pure risk, so I don't see why it wouldn't be a possibility.
     
  5. jeckt

    jeckt Member

    Joined:
    10th Aug, 2007
    Posts:
    6
    Location:
    [Syd - NSW]
    When you say pure risk, do you mean insurance type companies or are you referring to something different?

    If so could you please state some examples as I'm also interested in doing what the OP is interested in as a long term goal but haven't found it feasible.
     
  6. jdf81

    jdf81 Member

    Joined:
    28th Oct, 2009
    Posts:
    20
    Location:
    Mornington Peninsula, VIC
  7. Megs

    Megs Member

    Joined:
    26th Sep, 2009
    Posts:
    11
    Location:
    Canberra
    Thanks Jdf81... always interested to read articles about the success of insurance advisors - only makes my ambition to reach this goal so much stronger!! I know an advisor that has used PIS Dealer Group before and it sounds like they support risk advisors really well. Will look into their fees and support structures etc.

    Does anyone else have any suggestions for articles, reference materials I could read to help me increase my knowledge in insurance area. Would be nice to see some good examples of insurance strategies etc... And read articles regarding debates surrounding trauma insurance for example.