Ask Jill: A Career In Financial Services
I've received a lots of good questions from people interested in the financial services industry. We sure do need qualified and passionate entrants into the profession, so let's get right to i! From Andrea in NYC:
BK (before kids), I worked in institutional sales at a large investment banking firm. I actually graduated college with a degree in economics. While raising my kids, I have been thinking about re-entering the business, but would prefer to work with real people. How do you suggest that I get into that side of the business?I have fielded this questions countless times--in essence, how can I become qualified to enter the world of personal financial advice? Many brokerage houses or insurance companies will hire you to be a "financial consultant", but few will train you to be anything more than a commission-based salesperson. I will say that in the past, insurance companies have tended to have a more holistic approach to the client, but it really depends on the company and perhaps more importantly, the mentoring that occurs. One way for Andrea to transition her skill set is to explore the Certified Financial Planner (CFP®) certification.
The CFP is not a securities license, but a professional designation. It requires that professionals meet rigorous education, examination, experience and ethics requirements. Since I'm still a CFP practitioner, I can vouch for the rigor part--that two-day test was serious!
There are lots of colleges that offer the coursework necessary for anyone interested in the CFP. For Andrea, I know that Hofstra and Fordham are local possibilities. The cool thing about the CFP is that it can provide broad-based education in almost every aspect of the financial planning process. The program can also provide great networking possibilities.
Here's another question that brings up another designation:
Before I get into it, I enjoy listening to you on "The 404" podcast. Since your first appearance on that show I have been a frequent viewer of Moneywatch.com and "The Financial Decoder". Keep up the good work. My question comes from a career crossroads that I find myself staring at. I'm currently with my second employer after graduating in 2007. For about a year and a half I worked as a NYL agent and now I'm on the service side of things working with a 401k/pension administrator. I am Series 7/63 licensed.So Michael is at a crossroads--his question boils down to this: do I want to help regular people with their financial issues or move into the more lucrative world of private equity, venture capital or institutional money management?My question stems from the age old, "Where do I go from here" question. I want to further my qualifications with a designation and eventually go to grad school as well. Looking at both the CFP and CFA options, I'm torn between them. On one hand, I would like to work in private equity or venture capital, but the other side of me would like to help people with their own finances and plan for their future. I was hoping you could shed some light on my dilemma as I would like to enroll in a CFP or CFA program (such as The American College) ASAP.
Respectably, Michael
It's hard to answer the question without really knowing what floats Michael's boat, but I'll try. Both the CFP and the CFA require hard work, though in my humble opinion, the CFA is a harder test. That said, the CFA will focus almost entirely on investments, while the CFP will cover a more general investment section, along with insurance, taxes, estate issues...you get it.
My suggestion is that Michael talk to as many people as he can in all of the fields that interest him. He should ask questions like, "tell me what your day is like," or "what should I know about a career in (fill in the blank) that nobody will tell me?" The careers that he's considering are so different -- one deals with the public, which can be rewarding, but challenging; the other may focus on minutiae of a mathematical model to determine how to make money for large institutions or how to help a small company become a big one.
Michael needs to conduct some market research and listen carefully to what people tell him. I have a feeling that after a few conversations, he will find himself identifying with one more than the other.
