Considering career change to IFA, thoughts?
Discussion
Current profession is a large dumpster fire so I've been considering my options for a career change. Still very much in the planning and research gathering stage but one idea I keep coming back to is that of an IFA.
I have no background in finance or sales but am masters educated, understand the exam process for obtaining advisor status and confident of my ability to fund & pass these without being arrogant.
At present this is being considered as a plan B and my preference would be to have the qualifications ready and done in time for when/if current work stops. This would mean NOT working in the industry until necessary. Is this backwards? Would those in the industry suggest start as trainee before exams?
More top level, would those who are IFAs recommend the career. What are some things to know?
TIA
I have no background in finance or sales but am masters educated, understand the exam process for obtaining advisor status and confident of my ability to fund & pass these without being arrogant.
At present this is being considered as a plan B and my preference would be to have the qualifications ready and done in time for when/if current work stops. This would mean NOT working in the industry until necessary. Is this backwards? Would those in the industry suggest start as trainee before exams?
More top level, would those who are IFAs recommend the career. What are some things to know?
TIA
Hi OP,
At the top end of the pile, with a substantial client base and a seat at a respected independent firm/private bank/family office, it is an engaging and rewarding career choice. I worked as a stockbroker in the City for 13 years before qualifying as a CWM a decade ago and moving into financial planning and I haven't regretted a second of it.
However, that is a world apart from getting a level four qualification and flogging products for a restricted adviser (this is what most PHers understand an IFA to be btw).
The journey is a long one if starting at ground level. No (reputable) firm is going to just let you loose on clients because you've gone and got your diploma. With no direct experience, they would likely expect you to work as a paraplanner, perhaps even an admin and work your way up. If you want to walk into an advisory role you would likely need around 50m under your management as a starting point (and the experience that goes with an existing client bank).
Can I ask how old you are OP?
As noted above, if you get through that you then have client acquisition to consider and that's where the failure rate really ramps up...
Consider also, that the thing that makes the job interesting is also the thing that makes it hard, and also the reason why many fail. You need a broad set of skills.
Academic background? great! Lousy at dealing with people, oh...
Super analytical mindset? great! No sales drive or hunger to succeed, oh...
Self-motivated and driven? Yes! No direct experience and lacking credibility in the face of wealthy clientele, oh...
I know a lot of advisers, but only a handful that have really smashed it and excelled. Typically people will lack in one area and that holds them back. I know advisers that earn £1m+ a year and others that plateaued at 100k years ago and have never moved on.
So be under no illusion that getting your diploma means "you're in" it is really just the start. If you want to be taken seriously I would aim to get full chartered status before even approaching a company, but I'm not terribly familiar with the CII route. I came through the CISI pathway and you need 10 years of advising before you can even sit the CWM exam.
Not to be too negative.
If you want to have complete freedom over your hours, earnings limited only by your own ambition and a highly varied and stimulating career don't let the barriers put you off. But be under no illusion that the road to success is tough and far from guaranteed.
PM me if you have questions you'd rather ask in private.
At the top end of the pile, with a substantial client base and a seat at a respected independent firm/private bank/family office, it is an engaging and rewarding career choice. I worked as a stockbroker in the City for 13 years before qualifying as a CWM a decade ago and moving into financial planning and I haven't regretted a second of it.
However, that is a world apart from getting a level four qualification and flogging products for a restricted adviser (this is what most PHers understand an IFA to be btw).
The journey is a long one if starting at ground level. No (reputable) firm is going to just let you loose on clients because you've gone and got your diploma. With no direct experience, they would likely expect you to work as a paraplanner, perhaps even an admin and work your way up. If you want to walk into an advisory role you would likely need around 50m under your management as a starting point (and the experience that goes with an existing client bank).
Can I ask how old you are OP?
As noted above, if you get through that you then have client acquisition to consider and that's where the failure rate really ramps up...
Consider also, that the thing that makes the job interesting is also the thing that makes it hard, and also the reason why many fail. You need a broad set of skills.
Academic background? great! Lousy at dealing with people, oh...
Super analytical mindset? great! No sales drive or hunger to succeed, oh...
Self-motivated and driven? Yes! No direct experience and lacking credibility in the face of wealthy clientele, oh...
I know a lot of advisers, but only a handful that have really smashed it and excelled. Typically people will lack in one area and that holds them back. I know advisers that earn £1m+ a year and others that plateaued at 100k years ago and have never moved on.
So be under no illusion that getting your diploma means "you're in" it is really just the start. If you want to be taken seriously I would aim to get full chartered status before even approaching a company, but I'm not terribly familiar with the CII route. I came through the CISI pathway and you need 10 years of advising before you can even sit the CWM exam.
Not to be too negative.
If you want to have complete freedom over your hours, earnings limited only by your own ambition and a highly varied and stimulating career don't let the barriers put you off. But be under no illusion that the road to success is tough and far from guaranteed.
PM me if you have questions you'd rather ask in private.
Edited by DoubleSix on Tuesday 5th November 07:23
DoubleSix said:
Hi OP...
Thank you, appreciate the points and frank assesment. Completely agree re experience being paramount over a level 4 diploma. Edited by DoubleSix on Tuesday 5th November 07:23
I'm 32. May I ask why relevant?
I think what I was trying/hoping to achieve was a level of preparedness whilst still in current job (known entity) before pulling the trigger on the change, but think it may be better to just make the change and see what happens.
I asked your age because you are effectively coming at this (or any career move) from a standing start and would likely be working at a junior level alongside junior colleagues and potentially taking a big step back in salary. I don't know what you are earning now but paraplanners and admin are not highly paid positions. Even if you found a firm willing to take you on as a junior adviser maybe even with a route to client acquisition, they tend to mitigate their risk by offering you a low basic. The earnings come when you have a client bank.
The above is not the end of the world in your late 20's or even early 30's, but if you were 45 with meaningful outgoings that might be a bigger or even impossible pill to swallow.
What's your role now if you are happy to share?
The above is not the end of the world in your late 20's or even early 30's, but if you were 45 with meaningful outgoings that might be a bigger or even impossible pill to swallow.
What's your role now if you are happy to share?
DoubleSix said:
I asked your age because you are effectively coming at this (or any career move) from a standing start and would likely be working at a junior level alongside junior colleagues and potentially taking a big step back in salary. I don't know what you are earning now but paraplanners and admin are not highly paid positions. Even if you found a firm willing to take you on as a junior adviser maybe even with a route to client acquisition, they tend to mitigate their risk by offering you a low basic. The earnings come when you have a client bank.
The above is not the end of the world in your late 20's or even early 30's, but if you were 45 with meaningful outgoings that might be a bigger or even impossible pill to swallow.
What's your role now if you are happy to share?
I have a related question to OP's, if you don't mind my asking.The above is not the end of the world in your late 20's or even early 30's, but if you were 45 with meaningful outgoings that might be a bigger or even impossible pill to swallow.
What's your role now if you are happy to share?
I'm in my late 30's, worked in Banking/Finance then into Finance IT & consulting my whole career. I've also managed my own portfolio doing trading including derivatives for the last 17 years - how feasible is it to start something like this on the side as an additional income stream assuming one could build a small client base? Is it an all-or-nothing kind of role?
This appears to be SJPs bread and butter.
Take someone wanting a career change, get them qualified and set them up with a business. In return you get saddled with a debt to them and presumably no easy way to move away.
A close friend went down this path and I had an initial conversation with them. Their approach was worrying at best, very quick to provide advice and slow to acknowledge they had been given incorrect information which they were relying upon for their advice. Being from a finance background I wasn’t swept along but I do wonder if others would be.
Take someone wanting a career change, get them qualified and set them up with a business. In return you get saddled with a debt to them and presumably no easy way to move away.
A close friend went down this path and I had an initial conversation with them. Their approach was worrying at best, very quick to provide advice and slow to acknowledge they had been given incorrect information which they were relying upon for their advice. Being from a finance background I wasn’t swept along but I do wonder if others would be.
TownIdiot said:
It's incredibly difficult to find the type of clients you need to be profitable.
They tend not to be type to respond to "marketing" so you'd need to be developing relationships with professional introducers.
100% agreed that finding clients when starting out is difficult, but relationships with introducers isn't the only option. Writing decent content, e.g. a book or blogs can also work, although it can be a slow burn. Unbiased used to be good back in the day, but I'm not sure now. They tend not to be type to respond to "marketing" so you'd need to be developing relationships with professional introducers.
ChrisNic said:
This appears to be SJPs bread and butter.
Take someone wanting a career change, get them qualified and set them up with a business. In return you get saddled with a debt to them and presumably no easy way to move away.
A close friend went down this path and I had an initial conversation with them. Their approach was worrying at best, very quick to provide advice and slow to acknowledge they had been given incorrect information which they were relying upon for their advice. Being from a finance background I wasn’t swept along but I do wonder if others would be.
Oh absolutely, their “academy” is a stack ‘em high, sink or swim approach with limited risk to the business and significant risk to the “lucky” candidates. Retain the few that succeed and well… you know the rest…Take someone wanting a career change, get them qualified and set them up with a business. In return you get saddled with a debt to them and presumably no easy way to move away.
A close friend went down this path and I had an initial conversation with them. Their approach was worrying at best, very quick to provide advice and slow to acknowledge they had been given incorrect information which they were relying upon for their advice. Being from a finance background I wasn’t swept along but I do wonder if others would be.
DoubleSix said:
ChrisNic said:
This appears to be SJPs bread and butter.
Take someone wanting a career change, get them qualified and set them up with a business. In return you get saddled with a debt to them and presumably no easy way to move away.
A close friend went down this path and I had an initial conversation with them. Their approach was worrying at best, very quick to provide advice and slow to acknowledge they had been given incorrect information which they were relying upon for their advice. Being from a finance background I wasn’t swept along but I do wonder if others would be.
Oh absolutely, their “academy” is a stack ‘em high, sink or swim approach with limited risk to the business and significant risk to the “lucky” candidates. Retain the few that succeed and well… you know the rest…Take someone wanting a career change, get them qualified and set them up with a business. In return you get saddled with a debt to them and presumably no easy way to move away.
A close friend went down this path and I had an initial conversation with them. Their approach was worrying at best, very quick to provide advice and slow to acknowledge they had been given incorrect information which they were relying upon for their advice. Being from a finance background I wasn’t swept along but I do wonder if others would be.
I'm a qualified/chartered commercial accountant, very similar age to the OP. Whilst working in Financial Services pre-covid, I was bored and did CII exams up to level 6 on the side as the company were willing to pay for them. They were considerably easier than accountancy exams - most of it felt like regurgitation rather than there being much art involved, if I'm truly honest.
The irony of the industry to me, is that there's a lot of older duffers on LinkedIn claiming there is no talent coming through in IFA, but the barriers to entry are too great for anyone that isn't willing to earn an entry level salary as a paraplanner junior. Most firms only want you if you're bringing clients (for reasons mentioned by DoubleSix). It reminded me of trying to do the job of an accountant but nobody wants you to see their ledger in case you steal their lunch.
The irony of the industry to me, is that there's a lot of older duffers on LinkedIn claiming there is no talent coming through in IFA, but the barriers to entry are too great for anyone that isn't willing to earn an entry level salary as a paraplanner junior. Most firms only want you if you're bringing clients (for reasons mentioned by DoubleSix). It reminded me of trying to do the job of an accountant but nobody wants you to see their ledger in case you steal their lunch.
Mr_Megalomaniac said:
I have a related question to OP's, if you don't mind my asking.
I'm in my late 30's, worked in Banking/Finance then into Finance IT & consulting my whole career. I've also managed my own portfolio doing trading including derivatives for the last 17 years - how feasible is it to start something like this on the side as an additional income stream assuming one could build a small client base? Is it an all-or-nothing kind of role?
Is doing stuff like running portfolios and trading derivates normally part of an IFA's repertoire?I'm in my late 30's, worked in Banking/Finance then into Finance IT & consulting my whole career. I've also managed my own portfolio doing trading including derivatives for the last 17 years - how feasible is it to start something like this on the side as an additional income stream assuming one could build a small client base? Is it an all-or-nothing kind of role?
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