Consumerism Commentary - Latest Comments in Be A Financial Advisor

Re: Be A Financial Advisor

Anon — Fri, 10 Sep 2010 10:23:40 -0000

Thanks for your advice. It seems to me, one is better off starting on your own or structuring a small hedge fund so that you not only make a percentage of holdings but also a percentage of profit.

I almost went to a ML recruitment event. Pffft on that. Why not just steal the leads and start your own book in a different biz structure.

Re: Be A Financial Advisor

FortunateandCurious — Mon, 23 Aug 2010 22:41:46 -0000

35 years old. Happily Married, 2 Children. Make 150k a year (our budget is based on 100k per year) in a career that is not "fulfilling." I have zero debt, and ultimate freedom to be at all of my children's events. I rode a 4year high in the subprime market and made a bundle, but lost job 2.5 yrs ago, and went into more stable career field (Medical Sales). I'm not a science guy, but was fortunate in socking most of $$$ away during the subprime "run", thus feel no financial stress. Only mistake was buying too much house, but paid cash for it. Have lost 100k in equity, but still in a good spot with total assets of 400k (sans free/clear home). I dont want to wait 5years to have autonomy, so give me best case of how long will it take for me to get to 100-120k as an FA with freedom to come/go as I please. Thank you.

Re: Be A Financial Advisor

Hopeful — Fri, 12 Feb 2010 01:53:34 -0000

to the whistleblowers

Is it really that bad? What hopes does a newbee have with little experience and peers who are financially challenged. Sounds like its better to work for $30k, being frugile and try selling at flee markets occassionally rather then to give up years of wasted weekends and watch a suffering family.
Every websites are advertising stocks, trading platforms, etc. Who cares!?. I have a little money, but not enough to risk it on a some guy who is trying to increase his portfolio and not enough to play with trading.

What am I to do? Getting older, 34 now, but still wasting time. I don't have enough money to live from the interest, and not enough to risk it either. College is expensive, how much more time to invest in school, lose quality with family and yet wonder if I'll ever make at bare min 6figures.

Would like to get a law degree, CFP/similar. Truth be is it even worth it to look towards being a FA? What other industries pay without headaches and risking a heart attack?

Even though this blog has a lot of negative comments, I still have hope. Where are the comments from those who are truely successful?

Re: Be A Financial Advisor

Attitude — Tue, 15 Dec 2009 21:45:30 -0000

I am an FA and will agree it's not all smiles and $$ signs but if it were everyone would do it! Disgruntled Smith Barney guy...you can rant and rave till you're blue in the face and make copious amounts of excuses but at the end of the day, you couldn't cut it. I will agree it's not like it was 15-20 years ago but the statistics are plain as day and although someone may have blown smoke up your A$$, you can see the attrition rate. Everyone out there thinking about doing this...do it smart. Do your homework and try to get on with a firm or bank where someone can mentor you and you can bring them in as veterans on the big time appointments. Better yet, try to work your way in where you know someone trustworthy. Unlike SB, stay positive and keep your activities up and if you have to wait tables a few nights a week to make ends meet do it. If you make it you can live like few do. Good Luck!

Re: Be A Financial Advisor

FA losing hope — Tue, 08 Dec 2009 14:35:42 -0000

Smith Barney guy you are hilarious!

I am a independent financial advisor, have been now for just under 5 years. I drank the kool aid twice in my short stent of a career. Started with Edward Jones cause they won all these awards for customer service AND i REALLY WANTED TO HELP PEOPLE. In my first months of selling I cold called across the country selling financial bank stocks cause according to my trainer, "they would not ever hurt my client" What a crock. After wearing out countless pairs of shoes door knocking and going to meeting after meeting listening to these other advisors chant like queers about how great it is to be an advisor, only because they are trying to receive LP cause its the only way to make any money at Jones, I had it. I started there and got "a book" and office to work with. The advisor switched offices and the company promised me 10 mil to start with but I had to relloacte. Being I was only 23, I thought WOW $10 mil OK!! I opened my doors for the first time and was left with under $2 mil after leaving my home and rellocating, NICE! I turned that office into 15 mil in under 3 years. Should have been rolling in cash right? After Jones' cut, and taxes as bonuses (thats right, jones guys look at their compensation structure and how its taxed) I made under 40k every year. So here I am independent. My second bill of goods. An advisor I ran into liked me very much said son why dont you come work for me, and take over my practice. Holy shit just the break I've been waiting for. I might as well be mopping the stalls at a holiday inn! Get ready to cold call people your advisor hasnt spkoen too in over 20 years. Also, my particular case, all my boss sells is FIA's (for those of you who dont know what equity indexed annuities are, they are the used cars of the industry). So in a nutshell, after self employment expenses here I am making under 40 k while beating the advisor average for bringing in new assets. I had to expand on what the smithbarney guy had to say because he is the only one on here saying it how it is. I am sitting in on the CFP in Jan, and soon after pursuing the CFA. I'm done selling shit to people who dont want to buy. Im sick of compromising my own morals to make sure I can pay my rent this month. I'm going into the analysts side of things. For all you salesmen out there I give you kudos, if you can sell cars you can do this job. For those of you who want to help people, become a SOCIAL WORKER!

Re: Be A Financial Advisor

Already an Adviser — Mon, 23 Nov 2009 18:52:06 -0000

Being a financial advisor, I can tell you that there are great opportunities for those who have the personality for it. Choose your own hours, unlimited salary potential, and helping people are a few of the priviledges this career holds.

The price, as some of you are wondering about, is starting your book of business (clients). You usually start from $0 and are expected to build a book of business from nothing - which means 80 hours/week your first 2-5 years spent mostly prospecting (getting people to invest with you). This is where 95% of people fail.

As for wanting to "help" people, and educate them, that is another luxury you are given AFTER you build a sustainable book of business. Until then, it's your survival and food on your table. I came into the business with the attitude of helping people with their finances the way a doctor helps people with their health. You ARE a salesman, you will be taught SALES techniques, and you will be required to SELL stocks, bonds, mutual funds, insurance, whatever - even if they sometimes do not need it. Many firms terminate you if you do not meet ongoing expectations (accounts open, assets under management, gross revenue generated).

As for the person who commented that ANYONE can call themselves a financial advisor and charge for financial advice, you are mistaken in an illegal way. Unless you are Series 7 and Series 66 licensed through FINRA, charging for financial advise (or even calling yourself a financial adviser) can be punishable with fines and jail time - especially if you're advertising financial services to the public. Not even a CPA can charge for investment advice unless it is somehow related to taxes or they have their FINRA licenses.

All the hype about the benefits of this profession are true...if you're among the 5% to succeed in making this your full time career. Good luck to you all!

Re: Be A Financial Advisor

michael0909 — Fri, 30 Oct 2009 09:38:38 -0000

I am interviewing with ML for their Practice Management Development Financial Advisor in NY and I wondered if anyone has experience with the interviews and more importantly what the basic salary is - I have $100k in loans to pay to for my MBA so not really looking to be destitute for the first year.

Re: Be A Financial Advisor

futureinvestmentadvisor — Tue, 09 Jun 2009 16:30:03 -0000

Hello,
I have found these posts useful, especially those from experienced advisors. I have been managing
my porfolios for 15 years, with detailed tracking of 8 personal portfolios vs. various indexes, and
enter the value of each converted to a NAV on a friday closing basis, so I can track all this over time
on an excel sheet, during various market cycles and market events.

I exited the marke largely in 2007/2008, and have largely re-invested (70%) mostly in March/April,
anticipating a bottom to the bear market. I follow market cycles and look at a lot of historical data
and trends. I have perhaps 10-15 friends and aquaintences that have asked me to manage their
accounts, and I've looked at starting an RIA business. But I would prefer to work with an established
RIA for the mentoring, and so I would not have to re-invent the wheel. I basically would charge a %
of assets under management (1%+), but primarily educate and guide clients on all their financlal
and related matters, as I have a natural nack for this, and meet people all the time who need help.

I almost took a position with AG Edwards (which I thought was one of the better Brokerage firms), but
they were very inclined to push high fee accounts, and didn't seem to care about market cycles or
protecting the clients portfolio. I also talked with 2 private money managers, and would like to work
with a money manager as a support person, and also to grow an expanding client base on a
platform of asset allocation which makes sense and takes advantage of market cycles and trends.

If there is any advisor in the NJ area who might need some help or is willing to help with information;
I really would like to help the growth of a business, while I grow my own business and assets.

Thanks, FIV

Re: Be A Financial Advisor

2FAornot2FA — Mon, 25 May 2009 03:27:13 -0000

Smith Barney Advisor,

Thanks for your candid rant...I feel enlightened and appreciate your posts!

I recently retired from the Military (23 years) and was pursuing a second career as a FA. I have a B.S. in Computer Science & Mathematics and a MS in Computer Science. Neither degree is current nor do I have a passion to become a 'code monkey'. For me programming and technology has always been a recreational interest. I always told myself my second career needed to be a passion regardless of income; hence, the idea of becoming an FA.

I don't have formal training in finance but I've always been passionate about investing. With that said, I'm currently in the last phase of the being hired as a FA with Edward Jones. One of the steps prior to the final interview with Edward Jones was to knock on doors and conduct surveys. The exercise was very applicable and generally defined what would be expected. I spent 4 hours knocking on 110 doors that resulted in 15 'decline to interviews' and 25 'full interviews'. Many people were not home or chose not to answer the door. I believe in the value of being a FA and I can sell the hell out of things I believe in. I can easily see my self doing this for 2 years or so to develop my client book eventually shifting more to an advisory roll vs a client building roll; however, the possibility of having the rug pulled out from under me after putting the insane effort into building a client book has me second guessing the FA path. My final interview is scheduled for Friday and I find myself browsing the web for nuggets of clarity. What to do what to do?

Options as I see it:
1. Become an FA. Obtain the series 7 license and CFP designation. Fulfill the 3 year contract obligation and then decide to remain a FA or take my new found experience and move on to another area within the finance industry...maybe become a Financial Analyst instead. 3 years wasted??? Depends on how you look at it. Fortunately, I'm collecting a retirement and my family won't starve if I'm limited to making chump change.
2. Considering the crappy economy and the current unemployment rate, go back to school and earn my MBA. I'm considering an Executive MBA but don't know the pros and cons of an EMBA. Bottom line: Those baby boomers WILL eventually retire and corporate America will need management types to move up the food chain. I used to manage Defense contracts for the government and I believe a fast track may be there for me, who knows.

Anyway, I just wanted to post a Thank You for the insight you provided.

Re: Be A Financial Advisor

paperpusher — Sun, 10 May 2009 02:36:37 -0000

Smith Barney Advisor:

I can remember getting my B.S. in finance and later my MBA and interviewed with MSDW, SSB, the Pru and Axa. Everytime I was offered a job I didnt like the 1) instability of the economy (my B.S. was earned and 9/11 happened immediately after, consequently driving the stock market down..and upon getting my MBA we have hit a major recession) and 2) the attrition rates. I opted for the accounting side of business and have worked in it for close to 10 years. I found the stability of a paycheck a better bet than making the big bucks. I make around 50k now but I work in the educational finance field. I occasionally get offers from advisors.."well, hey you have degree in finance and an MBA, you would do great" To me that sounds more like they are recruiting someone with a heartbeat. I dont get paid a whole lot but great health benefits and stability give me more piece of mind. Now in my 40's and single w/ no children I still will opt for the slow and steady (and smart) route to retirement rather than jump on a fast train to nowhere. Your writing has helped me understand what I need to understand at mid-life...I'm just not cut out for the sales oriented business..my gut has always told me this..so I stick with govt work, rely on years of service and highest pay grade to solidify my happy retirement. Thanks for the words

Re: Be A Financial Advisor

Charles — Tue, 13 Jan 2009 17:32:17 -0000

Hello,
I am a recent business commerce graduate and interested in becoming an Financial Advisor and starting my own business. I read a blog here recently referring to advisors transitioning a Financial Advisor Business to a successor. Discussing also the growing population of investors becoming underserved by advisors due to financial advisors retiring at the same time baby boomers are requiring retirement planning services. I've not yet found a Mentorship program or advisor in my area looking for a junior advisor to step in as a successor, but all of the research I've done seems to come back to The Advisor Business Exchange site looks like a great way to get your foot in the door! I'm hoping this year with depreciated portfolio values and also baby boomers retiring, the timing will be right for me to start a career as a financial planner.

Any advice would be greatly appreciated if there are other approaches I should consider.

thx, Charles

Re: Be A Financial Advisor

Smith Barney Advisor — Mon, 12 Jan 2009 21:28:09 -0000

The bigger firms have more to offer clients more fund choices, more private money mangers, separately managed accounts, more resources period, CDs from many banks, bond trading desks, insuraqnce, lending, you name it. It really is who is the client and what makes sense for them given what is out there period. An insurance guy who offers nothing but insurance solutions isn't a financial advisor. At least not in my opinion. There are major differences in the top fims (UBS, Merril, Morgan Stanley, Smith Barney,) vs. mid tier and regionals Raymond James, Edward Jones, AG Edwards (now Wachovia I mean Wells Fargo. Merril, I mean Bank of America and Smith Banrey Soon to mean Morgan Stanley), the insurance carriers Lincoln, John Hancock, Prudential, Pacific Life, .., and the low end Ameriprise, lowest end primerica. The banks are equal to the regionals in offerings usually unless connected to the wirehouses. Last but not least you can work with Allstate, statefarm, etc. Primerica is about as low as you get. They convince the masses in that one. It is more important to sign someone else up then it is to selll anything or give advice. Educate yourself, be smart ask serious questions, don't rush into it and know what it is you are selling besides yourself. Don't jeopardize your family. I have said enough. Too many people in here talking circles about the idea. I wish I would have had more facts and committed to the idea of an exit strategy sooner. Good luck. If you know a lot of business owners and can bring in millions in assets this could be the easiest job you ever had. Ex. If you had 1 client worth 100 million and you charged 1%. At most firms you likely would get 50% grid - that's money. The fact is the less clients you have that are really wealthy the easier it will be. If you can't have $5 million in assets the first year and at least that every year after you should assess who you are going to work for and what you will be paid. 15 million you only make about 50k a year. The insurance guys make a lot more - closer to 90% grid. Then you get insurance and you offer insurance. Hi mr. client of our 5 insurance products you fit into plan B. I really should stop now. Sorry about the grammer, spelling, run ons etc. This was more a factual vent. Given this career I have jeopardized my family and now need to get paid. This game is over for me. Also, I think it is important to note I interviewed with American Express now Ameriprise, Wachovia, Edward Jones. I took a job at Legg Mason first based on the corporate culture which was very important to me. I went to Smith Barney through citigroup acquision. I have had conversations with many advisors from many firms and have discussed and work with many advisors at insurance companies. I actually got Life & Health certified back in the day looking into Primerica. Once they told me it was more important to sign people up then it was to work with clients I did some short research and realized that was nothing but multi level marketing. I hope my ramble helps someone. I am not checking back to follow up here and only hope that I am not hunted down by the eye in the sky for my honesty. Understand how you get paid and said time limts for your expectations and goals. Have an exit strategy. I can't tell you how many great FA's I listened to preach their pitch set up by the company because they were doing great - only to find them no longer in the business a year or two later. I will shut up now.

Re: Be A Financial Advisor

Smith Barney Advisor — Mon, 12 Jan 2009 20:43:23 -0000

I read the statement after 5y ears Smith Barney advisors make $250,000. If you think that is true you are clueless. They may make $250,000 in production. That would be about 75k likely a little more. That is right. If you survive the first 5 years and your production is 250k or more your grid depending on the firm is 30-40%. You can call every branch in your state. 250k in income at 5 years what a hoot.. If you find that to be true ask to see he is pay check. Then, still you better understand how he got there and how that relates to you. That statement my friend is very naive and is without merrit. A lot of hype and hope. Another thing someone else said if you like investing and want to play the market it likely isn't for you. That is not what the business is about. Stockbrokers are the minority. You can still do it but good luck trying to be succesful with your business. Not too mention every trade you do for yourself even after the 50% discount is still going to cost you $30 - $150 per trade. That is right you the broker your fee. My advice: Get the facts and don't jeopardize your family.

Re: Be A Financial Advisor

Smith Barney Advisor — Mon, 12 Jan 2009 20:24:29 -0000

Get the Facts. Can you bring in 30 to 50 million in Assets in 2 or 3 years? The firms care about production. If you are not 250 to 400,00 in production within 5 years you have wasted your career and the industry is pushing you out. I left a 6 figure job to become an Financial Advisor. Ever since this industry has gotten worse. Are you ready to cold call every day, go door to door knocking? They expect it yet the success rate of doing so is very poor. Oh by the way you could open accounts all day long and you will fail if it isnt enough money. I am talking big accounts. All the big firms are pushing to eliminate pay on accounts under 50k - proposed by Smith Banrey, already 75k or close at Morgan Stanley, Merril, who knows who else given the landscape over the last year. I left a 100k job have been in this business over 3 years worked 3 of 4 weekends per month for the first year or so. I busted my ass. My last pay check for 30 days was under $2000. I dress sharp, have succeeded in every job I have ever had and built a nest egg of over 400k before entering this business. I am 40. I was about making money, investments, providing education and taking care of clients. My work ethic was never in question. There is not one FA in my office under 8 years that is confident about there future, their business. If you are retired already and want to do it or if you are 2o something and aren't making any money aNYWAY. Go for it. My honest opinion is this business is a piece of shit. That being said everything about investing, taking care of clients is great. Compliance is terrible. It is business hinderance. The firms, they want someone to bring in million dollar accounts and relationships. If you can't do that regularly you will be basing a career on hope and hype. Trust me I am living it, I am a professional, hard working and educated. This career move has me in a position I can barely feed my family. If I didn't already have the assets to live from I would be in foreclosure. MOst firms pay sALARY for one year, most banks 20k to low 30's base. I wish someone would have been more blatenly open with me. In the time frame of my training there was over 125 people that went through training. Of that amount 25 are left. I know 12 of them. Three will likely survive. Two joined teams and the other was given assets/business (so were many others and they will still not survive). I could write a book on this. I am 4 years into a piece of shit career built on the hope and hype that was relayed to me. Average guy makes 160k year. It wasn't until years later I found that was based on the average person being in the business for 15 years. If you can make it past 5 years you have a chance if your production numbers are over 400k. Do you know what it akes to get there? How much in assets? I know guys with well over 30 million in assets and they are not there. Get your facts, get the answers and ask questions before taking the leap. Lets say you charge 1 percent on fee based you get paid to grid 30 to 40 percent. So if everything goes perfect your client invests 100k and everything is under fee you raise $1000 for the firm. You get paid to grid 30, 35, maybe if your lucky 40%. That's 300 - 400 per year for that. How many $100,000 accounts do you need to make 50 or 60k a year. Exactly. Think about it. How many millionaires can you make be part of your business? Even if you know some the process is the larger the money the longer it takes to get there business. Good luck. Do not be as Naive as I was. I felt it was what I wanted to do I was going to work hard and never look back. I jumped in hard with the premise this is what I was going to do no matter what. What the ___ was I thinking. Call around and ask a lot of guys that have been in the business 5 to 8 years what they are making - really. Have them show you there paycheck after the salary runs out. You will be surprised. Ask those under 5 years if they would recommend the job to their best friend. Are they comfindent about there career or future? I guess it is all relative if you wish to make 30, 40, 50 or 60k. At least for awhile until the firm doesn' want you because your production is to low. Lowest quintile and at 5 years oh, your pay - that's right your grid falls to like 20. What happens when they stop paying you a salary! Sorry, to be negative. People act like this is the best job ever. The only people I see making it are the ones that were handed business (money/assets) and a lot or plain got lucky or new many millionaires willing to give them money. Hard work doesn't mean anything don' let them full you. The industry is much different then it was even 5 years ago. I wish I could share more. Let's see Wachovia, Merril, Smith Barney keep naming names. How many times did employees wonder who they were going to be working for? what there pay would be or if they were going to get cut. Don't jeopardize your family on this career move without facts.

Re: Be A Financial Advisor

Rob — Tue, 05 Aug 2008 19:43:03 -0000

I've been selling long term care insurance for years and am licensed in CT, NY and MA I'm doing well but would like to work more with CFPs. Specifically, I'd like to be the backoffice for all their client's LTC needs. This would include doing all the work from marketing, conducting semianrs under the CFP's name, client meetings, administration and appeals. All done pursuant to a split commission arrangement. I'd appreciate any advice on approaches or strategies to becoming a CFP's backoffice on long term care insurance.

Re: Be A Financial Advisor

lookingatFA — Fri, 16 May 2008 15:20:18 -0000

Witty,

Thanks for your post. That really gave some great information. I am currently interviewing with Smith Barney and Wachovia Securities. I really like the fact that Smith Barney doesn't decline the salary for two years. Most first start declining the salary very quickly.

Did you start with Smith Barney?

Re: Be A Financial Advisor

Dave — Fri, 02 May 2008 13:26:27 -0000

Many of you looking at his career opportunity are not seeing the whole picture. There's more to being an advisor than asset management. There are 77,000,000 'Boomers' that have run out of time to build a portfolio and simply need solutions to their retirement problems such as:
1. How to get out of debt before retirement.
2. How to get the maximum sustainable lifetime income from the nest egg.
3. How to get control of monthly expenses.
4. How to minimize tax liabilities.
There are 3 quadrants of the personal balance sheet that are being completely ignored by the wirehouse advisors.
....and, you don't need to be a "registered rep" to work with people in these areas. You can be completely independent, make a good income, and it's not about selling, either. It's about educating. It's about positioning.
People have big problems out there. There are practical and effective solutions. By positioning yourself between the two, your have value. Client will seek that value and you don't have to "sell" anything.

Re: Be A Financial Advisor

wittylinehere — Sun, 13 Apr 2008 02:02:24 -0000

After reading this blog here are a few of my comments.

I have been investigating this job thoroughly because I am interviewing for positions and am planning on accepting my offer from Smith Barney.

If you love finance but you do not like sales, then this is not the career for you. You would likely be happier as an analyst at an investment company. Similarly if you are an excellent salesman but have not started studying finances this is going to be very difficult and probably not a good choice long term. A financial advisor must posses two very different personality traits they must be highly social and highly analytical.

The first few years you need to build a book of business. After you get your insurance and broker licenses you are basically expected given a business card and told that you have X amount of time to get Y millions of dollars under management. Now what? Here is where you will need to sell. In order to sell to people the idea that you should advise them on their finances and investments they will expect you to know about finances. Hopefully you are like me and investing is has been a passion of yours for years.

As time progresses the job transitions from sales to consulting. Eventually you have built a large enough book of business, and have enough clients that trust you with their investments, such that you do not spend much of anytime selling. Now the job is to make sure that all of your clients are meeting their financial goals, and that their assets are allocated properly. If you do this well you should get a few more referrals and your business continues to grow to your ideal level.

All of the companies out there have different offers. Northwestern basically wants you to peddle insurance. You make money no matter what you sell, but you make a heck of a lot more when it is their insurance. I could never work in an environment like that. I want to be able to do what is truly best for my clients. Then their are companies like Ameriprise financial. They seem to want everyone with a bachelors degree that can pass a relatively easy test. They had about twenty of us in a conference room where they tried to sell us on the job. Evidently the base salary and commission is in the middle tier and they charge clients in the middle range. Ameriprise also expects the financial advisor to front the $1,000 for the insurance and brokerage licenses. Then after about ten weeks of study and waiting for the results, if you pass they will hire you and they will reimburse you for the licenses.
Edward Jones pays slightly higher than Ameriprise.

At the high end of training and salary are Smith Barney, Merrill Lynch, Morgan Stanley, and UBS. These are full brokerage wirehouses that also have the resources of the largest investment banks in the world. For example Smith Barney is owned by Citigroup. In the list of the top 100 advisors in terms of assets under management it is dominated by Smith Barney and Merrill Lynch, with a slight edge to Smith Barney.

I don't know about all of these companies internal pay scales, but I went through interviews with Smith Barney and have received an offer. They allow advisors to build the business as that advisor seems appropriate within approved guidelines. This means you can build a business where you make purely a commission on everything that your clients buy and sell, or you can make a fee for assets held under management. Like most Smith Barney Advisors I would choose to build my business in a Fee Only or Fee Based style. I do not like the idea of my income being purely tied to when a client buys or sells stock. It creates a bad incentive for me to buy and sell stock rather than create wealth. I will want my clients to know that I only make more money by making them more money.

Someone asked how much they would make with Smith Barney. There is probably a range depending on your background and what you made in your last position. That said, the three year base salary I was offered is in the mid $50s for the first 2 years and then begins to decline. With this base, the research I have seen shows that after all the bonuses and fees the first year total compensation range is $60,000 for such bad performance that you should start looking for a new job to $120,000 for the top ten percent. This is assuming you are brand new and are not bringing existing clients with you from another advisory. As you can imagine they are highly selective about who they will choose. Even after being carefully selected only about 60% of the new advisors build a successful book of business, and survive past one and a half years. The vast majority of those that hit the rigorous 1.5 year keep your job quota will survive to make a successful business. Five years out the average earnings for a Smith Barney advisor is approximately $250,000. Top 10% performers earn in the millions at that point. For a reference Edward Jones had similar failure rates but the average starting earnings was half to two thirds of this and the five year out pay was closer to what is quoted in the above magazine article. It is much like starting your own business except with lower failure rates and not quite as large of a financial pay off. Maybe half make it and they have a solid shot at being a millionaire. Try to start the next Microsoft and you are looking at maybe 2% make it but if you make it you have a shot at getting on the Forbes list. Just like any investment there is a trade off between risk and reward.

There are also independent advisor companies. Raymond James is one of the best in that area. They allow you to buy the franchise and have less oversight. The veterans are moving this way because they do not like the compliance that comes with being with one of the major wirehouses. They also get more freedom, but they have to do all their own back office work and they give up all of the research and company professionals that work for the worlds largest banking companies. In addition, I find the independent route particularly challenging for someone like me who is brand new in the business. I could really use the training, mentoring, and brand name recognition that is available at a company like Citigroup's Smith Barney Advisors, Merrill Lynch, Morgan Stanley, or UBS.

Re: Be A Financial Advisor

Ginger @ Girls Just Wanna HAve — Tue, 04 Mar 2008 14:19:46 -0000

I am also interested in this career path as well... but like you Ive avoided making any really solid decisions about what I really want to with my life. This is after 2 Masters degrees and toying with the idea of a third along with the CFA designation. Web development is something that I really wish I'd pursued when I first moved to DC.

DEcisions decisions...

The only thing that really kills me about the CFA position is the selling. I am sooo not a sales person and I like working from home in my pajamas.

Re: Be A Financial Advisor

Jaye — Mon, 18 Feb 2008 17:24:46 -0000

I am interested in the financial analyst/manager type career move. I have taught government as a full professor for 15 years, I have a law degree, I would change careers for the money. Not as much free time, but more money. Student loans, husband had major surgery that our insurance would not cover. So money is on my mind. I make about 70K now and I have not passed the Bar.

Well, what do you think? I am 45, no children, great husband who also teaches, but we never have enough money!

Re: Be A Financial Advisor

shfintz — Sun, 20 Jan 2008 08:52:57 -0000

I am a third year law student, who is considering becoming a financial advisor. I have been through a few interviews. and it sounds pretty interesting. Can anyone compare financial advisor to being an attorney at a small to mid size firm? The pros and cons? Thanks

Re: Be A Financial Advisor

multiguy — Wed, 12 Dec 2007 21:25:07 -0000

I am an advisor, and make north of the total you mentioned. I am only in my early thirtees, and have made a nice income in my eight years. But the negatives are aplenty:

1 You are always on call. You depend on your clients for your income and referrals, so your cell is always near, and always on.

2. You will get yelled at all of the time. It is a numbers game. With 700 clients, 10% will be mad at you. That is a lot of yelling.

3. People are sue happy. If you happen to start during a bear market, look out. Most advisors are always under the stress of being sued.

Other than that, there are a lot of positives. Best of luck!

Re: Be A Financial Advisor

andre — Sat, 08 Dec 2007 02:46:03 -0000

i am new to this Financial Life and am trying to learn about it. i am almost done getting my bills payed off and will soon be able to start a portfolio. i was hoping someone could point me in the right direction to a good book to help me learn how to manage a portfolio

Re: Be A Financial Advisor

trying to get there — Fri, 07 Dec 2007 20:47:42 -0000

hey clemente mba, what did you find out about smith barney? I am looking to change careers (from the car business to Financial advisor). I am trying to find some needed info and salary expectations.

Re: Be A Financial Advisor

Clemente M.B.A — Sat, 15 Sep 2007 19:31:55 -0000

I am considering a career as a Financial Advisor with SmithBarney for the three year paid training program. I finished my MBA in marketing in May of this year. I am wondering what is the salary they will be offering or what salary I should be asking for? I have many years in sales if anyone could give me some insight on the salary I should be expecting, pros & cons about being a Financial Advisor I will greatly appreciate it.