I am on vacation. My Certified Financial Planner came up to meet with me. I am doing OK. I will be able to start drawing down some accounts next year if I want to. Still I am too young to retire.
In two years, I turn sixty and the Saudis tend to fire people based on age and nationality. When the time comes, I old Americans will be first on the chopping block. Still, I am good for the next two years.
So anyway, my CFP said she would love to hire me as a CFP. It involves a rather-expensive (how much?) online course followed by a real-life test. After than you need to do a three-year (paid) apprenticeship. (Apprentice, at my age?)
Still, it is mostly legal and indoors, two things I value in my third career. I like helping people, but do not want to be any sort of salesman.
Sounds like the ragged fringes of multi level marketing almost. I’d be suspicious that the CFP gets some sort of gain by signing someone to the program. Dangling the potential of a future job, just seems like a carrot to me.
I’d be backing away from this offer, myself, but that’s just me.
So, I have views on the CFP. It’s… Ok. It’s absolutely better than it was. If you had asked me 5 years ago I would have told you it was a scam.
What you should know is that the CFP is a relatively new, in my opinion somewhat gimmicky, credential that is equivalent to the (imo) much more rigorous ChFC. But, at the end of the day, all they are are industry credentials. They will both allow you to act as a fiduciary, but so would a 65 and a 65 is faster and easier to get if you are genuinely dying to get into financial planning and let’s you do most of the same things. You will eventually need a 7 too if you are going to be serious. It’s a long path. The classes and tests are hard no matter which road you take. You probably want and insurance license too.
Know this. ALL FINANCIAL PLANNING IS SALES. Anyone who tells you otherwise is trying to sell you something or they are lying to themselves.
I’m sure your financial planner has your best interests at heart. But, does she stand to make money off you if you join her? Recruiting your clients is big business in the world of financial planners. It’s called building a downline from your natural market. How would you get paid? What product portfolios will you have access to? What software?
Is it provided or do you have to get your own? Office space, provided or do you rent it? Training (the CFP class won’t teach you how to do the job, just the theory and the law.), how do you get it? Where does your book come form? Do you have to build it from scratch?
Lots and lots you need to know. Much of it stuff you probably wouldn’t think to ask. If it’s a retirement career for you and its fun (I think it’s fun) great. If you are good at it you can make a whole lot of money in the right situation. And you can genuinely help people. If you don’t care so much about the money, that will help because it can be stressful if you do.
But, yes, it’s sales. CFP classes will spend a bit of time on how to sell. They probably won’t call it that anymore, but it’s what it is.
Feel free to PM me. Financial planning is literally my family business. I’ve been in and around the industry since I started noticing what my dad did. I now work full time in senior benefits, but I’m still connected to many financial planners at independent shops as well as places like Edward Jones, NYL, Wells Fargo and Merrill Lynch.
Every insurance and financial planning company is set up in a way that is more similar to an MLM than anyone outside the industry would be comfortable with. Banks are pretty much the only exception, and even then it’s probably still too close for most people’s comfort if they knew.
Insurance, which sounds like it is set up in a very similar ways, has offered the following benefits to my BiL. I think they will translate. Yes, he had to go through training. Yes, he is in Sales. Yes, it really does have an element of MLM in it (he hires folks and does better they better they do).
Firmly on the plus side though, he is very employable now that he is trained.
I need to go back and look at your massive credential list from the other thread :). It may be that you would do better picking up something like data analytics, which is growing and is often a work from home gig. It also pays very well. My husband’s company is always looking for these folks. No sales involved.
All in all, I suspect I will head down to the Barns & Noble and pick up some test prep books. This will serve as a low-cost introduction before I plunk down big bucks for on-line courses. Thank you all.
I’m studying for it now. However, it is absolutely unnecessary to succeed in the business. I certainly haven’t needed it. The fact that she’s requiring you to get a CFP is strange as I know of no other large firm that requires it. It is encouraged after a certain level of business is achieved, yes, but to start it can be a distraction.
If you want more info send me a PM. I’ll be glad to answer.
I know people working in the field with all of the big firms and this is largely untrue. For my firm - one of the biggest - it’s entirely untrue. Even were I to recruit someone I derive no benefit from their being hired.
It’s true that some of the insurance companies treat it that way - established players getting a share (usually 5-10%) of the performance of people they manage or recruit - but it’s not true of most of the brokerage firms I’ve known.
Right? It’s really a weird ask. Especially since a 65, while not having prestige, is cheaper, faster and actually allows you to do anything the CFP would. (CFP essentially waives the need for a 65).
Out of curiosity, why did you decide on CFP instead of ChFC?
Maybe the industry is changing? My guess is not as much as it looks like to you from the inside.
Large firms, probably not so much anymore I suppose. Though the last time I paid attention Merrill Lynch did. But 80% of the industry is not large firms.
Don’t get me wrong, it’s not MLM, it’s just closer than most would expect.
I don’t have either. I got my Series 7 and 66 and moved on from there. The CFP designation will get you a waiver on the 65 but it looks like it varies from state to state as to whether you’d get a waiver on the 66. Getting a waiver on the Series 7 appears to be a chore and the 'net is filled with stories of people applying at the federal level and not getting it.
Well, the joker in that deck is that even if most of the industry isn’t large firms most of the actual business is done by large firms. Even if a small boutique dealer is out there they’ll still clear their trades through one of the big firms. Very few of the smaller indies spend the time and effort to connect directly and do their own technology and compliance work. Way too expensive for two guys in a garage.
