In the financial advisory industry, some are content with just staying at a producer level – to constantly hunt for new clients. These people may just enjoy the selling aspect of this career path, and there is completely nothing wrong with that.
However, some feel that they want to contribute to something more. To share, pass on their knowledge, build a company, and take the steps to become an entrepreneur.
The career path of a Financial Advisor
For those who are Iooking to advance in their career but are unabIe to due to various unfavorabIe circumstances with managers in their current workpIace, you might find yourseIf asking the question, “What do I do now?”. There are a few possibIe paths you can take at this point in your career to move forward, you will need to find which is the most suitabIe for your situation.
You might decide on building your own agency, that could offer great incentives, but requires hefty start-up capital and resources. If you possess these resources, then, by all means, go for it! But, you probably don’t have the resources to do so currently.
Financial Services Manager
Besides having to build your own agency, you can take it down a step and join one that is willing to give you Overriding Commissions for managing a team. However it should be taken into account that every company is built differently when it comes to overriding commissions. Smaller independent agencies just don’t have the means to afford for you to take overriding commissions as a manager of your team, but those with financial powers might have.
So, the next best thing is to find a company that can offer overriding commissions from a team that you will build and supervise but hiring suitable and competent candidates can be hard. How do you convince someone to join? Other than the incentive of commissions, those with family obligations might need some form of base salary for the first few months. Some will also need leads to get started. All these resources will have to be provided by the company you are working under. Therefore, you will need to choose a company that will fully support your recruitment efforts.
In addition to that, if you’ve been in the industry for a while, a lot of agencies will give you a compensation type of incentive to switch to their company. You will then have to calculate your tradeoffs, your pros, and cons; What you’ll lose from your current recurring vs the switching incentive. Would it be worth it?
If you plan on choosing to be a financial planner for a lifetime career, or on a part-time basis, you need to start planning ahead, because switching at a later stage in your career might be very expensive and difficult. You might have joined the industry because you were advised and encouraged by friends who are also in the industry. And now that you’re a more seasoned professional, there are a lot more things to consider. Such as, If the company you’re with is suitable for you to build a career and grow a team.
As a leader building your own team, your responsibilities will include participating in strategic planning, formulating long-term business plans, recruiting new consultants, leading and working on business development projects, monitoring performance efficiency, and liaising with team members. Your job will be to formulate long-term business plans, recruit, and make sure everyone can put food on their plate
Benefits of Managing Your Own Team
Although these are more responsibilities put on you, the benefits will increase as well. Depending on the company you will be under, you can earn an allowance of up to $6,000 per month on top of commissions & incentives, get quarterly performance bonuses on personal & team sales, go on annual conferences & overseas incentive trips, receive regular welfare, bonding activities & recognition programs, and Generous performance packages offering Financial Planners/Managers/Bankers.
Switching Roles Away from Being a Financial Advisor
If you are considering transitioning from a financial advisor role, there are several career options that you may consider:
- Financial Analyst: These people look into a company’s numbers to see how healthy their finances are. They crunch data, put together reports, and guide investors on where to put their money smartly.
- Financial Planner: If you’re looking to map out your money goals, a financial planner is your go-to. They work with you to set goals, budget your spending, and plan your savings and investments to reach those targets.
- Investment Banker: Investment bankers are the ones who help businesses get the money they need. They manage the process of issuing and selling securities, pinpoint investment chances, and advise on how to price these offerings effectively.
- Wealth Manager: Wealth managers cater to the financial needs of wealthy individuals. They craft investment plans, manage portfolios, and provide advice to help grow and protect their clients’ wealth.
- Business Development Manager: These professionals are all about growing a company. They spot new business opportunities, build strategic partnerships, and develop plans to boost sales. They also dig into market research and come up with ideas for new products or services.
Ultimately, the career path you choose wiII depend on your skills, interests, and career goals. It may be helpful to speak with a career counselor or mentor to explore your options and determine the best path forward. Taking this next step in your career is a big one, and it is cruciaI that you make the right and informed choices. With so many factors that are invoIved in this decision, it can be confusing and overwheIming to even start. That is why InsuranceJobs wants to help find better and unbiased options for you to ensure that your career will flourish into the job you have always dreamed of.
If you plan on choosing to be a financial planner for a career, or on a part-time basis, you need to start planning ahead, because switching at a later stage in your career might be very expensive and difficult. You might have joined the industry because you were advised and encouraged by friends who are also in the industry. And now that you’re a more seasoned professional, there are a lot more things to consider. Such as, If the company you’re with is suitable for you to build a career and grow a team.
Disclaimer
Every effort has been made to ensure the accuracy of the information provided, but no liability will be accepted for any loss or inconvenience caused by errors or omissions. The information and opinions presented are offered in good faith and based on sources considered reliable; however, no guarantees are made regarding their accuracy, completeness, or correctness. The author and publisher bear no responsibility for any losses or expenses arising from investment decisions made by the reader.
