Career change to... Financial Advisor?
Discussion
My FA (who is also a friend) is just into his 50's and starting to prepare for retirement 
Whenever we meet, he makes a point of saying that I would be good at doing what he does. He's even brought me round one of his study books so I can see the kind of exams I would have to contemplate doing should I wish to take that path. I get the impression he's quite keen for someone he trusts to take over his portfolio when he eventually retires. I admire his belief in me (which is much more than I have in myself!).
I'm not a fan of my current role (Motor Trade Accountant) and can't see it getting enjoyable any time soon. My career has not progressed for some time now (due to current employer) and opportunities to move have been few and far between.
I also like the idea of working for myself, especially after seeing my missus go self employed less than 2 years ago and doing very well for herself. She works a 4 day week with all the flexibility that working for yourself has (and zero commute added in).
Anyone here do the job who can offer some intelligent insight?
Whenever we meet, he makes a point of saying that I would be good at doing what he does. He's even brought me round one of his study books so I can see the kind of exams I would have to contemplate doing should I wish to take that path. I get the impression he's quite keen for someone he trusts to take over his portfolio when he eventually retires. I admire his belief in me (which is much more than I have in myself!).
I'm not a fan of my current role (Motor Trade Accountant) and can't see it getting enjoyable any time soon. My career has not progressed for some time now (due to current employer) and opportunities to move have been few and far between.
I also like the idea of working for myself, especially after seeing my missus go self employed less than 2 years ago and doing very well for herself. She works a 4 day week with all the flexibility that working for yourself has (and zero commute added in).
Anyone here do the job who can offer some intelligent insight?
Sounds like you have an interest, aren't too enamoured with your current job and a ready client base. I'd say go for it!
But... keep in mind that there is the 'sales' aspect of any business, especially since RDR. They will be paying you before you've 'given' them anything. Getting up to Level 6 takes time so be prepared to study. If you are to take over his portfolio, work out something crystal clear and make sure a firm contract is in place. I too know an IFA who is keen to hold on to his clients and have someone take over the work so I can see why he wants this and it certainly can work well.
If you do it, I'd say do some of the basic level exams first. Then if its actually going to happen start working for the chap as a paraplanner with a view to quickly doing the FA work. Then have an agreed scale of how and when you take over and then firm agreements on the finances.
But... keep in mind that there is the 'sales' aspect of any business, especially since RDR. They will be paying you before you've 'given' them anything. Getting up to Level 6 takes time so be prepared to study. If you are to take over his portfolio, work out something crystal clear and make sure a firm contract is in place. I too know an IFA who is keen to hold on to his clients and have someone take over the work so I can see why he wants this and it certainly can work well.
If you do it, I'd say do some of the basic level exams first. Then if its actually going to happen start working for the chap as a paraplanner with a view to quickly doing the FA work. Then have an agreed scale of how and when you take over and then firm agreements on the finances.
Baldy881 said:
My FA (who is also a friend) is just into his 50's and starting to prepare for retirement
Whenever we meet, he makes a point of saying that I would be good at doing what he does. He's even brought me round one of his study books so I can see the kind of exams I would have to contemplate doing should I wish to take that path. I get the impression he's quite keen for someone he trusts to take over his portfolio when he eventually retires. I admire his belief in me (which is much more than I have in myself!).
I'm not a fan of my current role (Motor Trade Accountant) and can't see it getting enjoyable any time soon. My career has not progressed for some time now (due to current employer) and opportunities to move have been few and far between.
I also like the idea of working for myself, especially after seeing my missus go self employed less than 2 years ago and doing very well for herself. She works a 4 day week with all the flexibility that working for yourself has (and zero commute added in).
Anyone here do the job who can offer some intelligent insight?
Why would he want to hand over his business for nothing? People will buy his business so why wouldn't he sell itWhenever we meet, he makes a point of saying that I would be good at doing what he does. He's even brought me round one of his study books so I can see the kind of exams I would have to contemplate doing should I wish to take that path. I get the impression he's quite keen for someone he trusts to take over his portfolio when he eventually retires. I admire his belief in me (which is much more than I have in myself!).
I'm not a fan of my current role (Motor Trade Accountant) and can't see it getting enjoyable any time soon. My career has not progressed for some time now (due to current employer) and opportunities to move have been few and far between.
I also like the idea of working for myself, especially after seeing my missus go self employed less than 2 years ago and doing very well for herself. She works a 4 day week with all the flexibility that working for yourself has (and zero commute added in).
Anyone here do the job who can offer some intelligent insight?
Would you take on his liability for past advice? Don't just bat this question off offhand it is very serious.
If his clients are any good they will be sophisticated and you wont know what you're doing for years (with or without exams) as you wont know about fund ters, charges, platforms, wraps and all the historic issues. It takes years to know.
My guess is he will be seeing this recurring income as his pension and will want to hang onto it but sign all liabilities over to you or get you to borrow to invest in it, or make you work hard and keep the lions share for him.
Make no mistake, an IfA that has been doing the job years will know what he is doing, exit strategy, PII cover, liabilities etc.
This is absolutely NoT something to go in on lightly, one complaint could bankrupt you.
I don't think its a goer, by all means enter the profession but as an employee in a big firm to know the ropes.
Also, it could be argued to be a dying industry post RdR numbers are down and many people go online and don't want an adviser going to their home or they don't want to go to the office, especially as people get more internet savvy.
Ok guys, thanks for the differing advice. I've no idea what his plan is after he's finished but it was just an impression I get. He seems really keen to encourage me into the profession saying I'll be good at it. He's been doing it all his working life (and quite successfully if retiring not long after 50 is on the cards!).
I've emailed him today and we're going to meet up for a chat about it over a beer. What sort of things I should look to be researching/doing to get the ball rolling, how his income works etc. Obviously much to discuss!
One things for sure, I don't need to be doing what I'm currently doing for too much longer!
I've emailed him today and we're going to meet up for a chat about it over a beer. What sort of things I should look to be researching/doing to get the ball rolling, how his income works etc. Obviously much to discuss!
One things for sure, I don't need to be doing what I'm currently doing for too much longer!
Edited by Baldy881 on Friday 15th August 18:02
jonah35 said:
My guess is he will be seeing this recurring income as his pension and will want to hang onto it but sign all liabilities over to you or get you to borrow to invest in it, or make you work hard and keep the lions share for him.
I have to say that I was thinking exactly the same.I'm certainly no expert in IFA matters, but as I understand it a well established IFA will be earning well from ongoing business, so it would be reasonable (from a layman's viewpoint) to assume that he's keen to protect his regular income. Now whether that conflicts with him telling the OP that he could do well in that profession, I wouldn't know...
jonah35 said:
My guess is he will be seeing this recurring income as his pension and will want to hang onto it but sign all liabilities over to you or get you to borrow to invest in it, or make you work hard and keep the lions share for him.
I have to say that I was thinking exactly the same.I'm certainly no expert in IFA matters, but as I understand it a well established IFA will be earning well from ongoing business, so it would be reasonable (from a layman's viewpoint) to assume that he's keen to protect his regular income. Now whether that conflicts with him telling the OP that he could do well in that profession, I wouldn't know...
Dont forget a huge part of the job is sales. More so when you are new and don't have people coming to you.
IME you can teach most people the basics of being an IFA with time.....you can't teach sales as easily.
I was a gym instructor and car salesman prior to being an IFA - both put me huge leaps ahead of the uni guys coming in with accountancy qualifications but to converse (and sell to) adults!
IME you can teach most people the basics of being an IFA with time.....you can't teach sales as easily.
I was a gym instructor and car salesman prior to being an IFA - both put me huge leaps ahead of the uni guys coming in with accountancy qualifications but to converse (and sell to) adults!
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