[Anonymous]

Hi I’m fairly new here and I could use some advice.

Here’s my situation: I graduated this past July and started working in a “financial planing” firm about a month ago. I put it in quotes because what they really do is sell insurance, and outsource any other planning issues. What I do is review a client’s financial information and look for opportunities to sell insurance, and then put it into a presentation.

My superior claims that I have huge potential here because I’m the most educated employee and the boss will likely promote me above everyone else.

My problem is that I really want to work in an accounting firm because that is what I studied in college. Even though the pay is likely to be less, i still feel like I should at least start off working in the field I studied for.

I just want to add that my boss makes a ton of money and he’s generous, so if I help him sell I benefit.

Any help is much appreciated, thanks!

[See Pee A]

Financial planners can do extremely well. Note: extremely. The real money starts when you begin managing people's funds, since you start taking asset management fees. Since client turnover is relatively low, once you build up a decent client base, say $5m under management, and 1% of assets fee, you can start making decent money just by having their account, plus more if you outperform.

Regardless, it depends on what you want. Financial planners do well, but I feel like you're always doing sales in a way that never attracted me. Public accounting is hard work, and you don't get paid a lot. That said, your earnings potential in the future is fantastic. Not that you can expect it, but partners in the Big 4 pull in on average over $600,000 a year. Mid-tier partners probably a bit less, but still a substantial amount. Even those who leave command great salaries due to their experience.

Summary, it depends on what you want. If you really can't see yourself doing financial planning, then get out when an opportunity presents itself. In the meantime, work hard so that when the time comes you can at least get a good recommendation, because you will definitely have to explain in an interview why as an accounting major you chose to enter financial advisory, and why now all of a sudden you want public accounting. Good luck!

BEC 86 (08/30/11)
FAR 84 (10/13/11)
REG 88 (11/08/11)
AUD 86 (11/29/11)

Exam prep - Becker self-study

[Anonymous]

Thanks for the advice!

The thing with this company is that they don't currently do assets under management. And I agree about the sales part. I constantly feel like I'm trying to make a pitch for the clients. I guess I'll try to find a position in an accounting firm. I don't want to be thinking down the line that I hate my job and should have stuck with accounting.

[posty]

@djoshi – If you don't mind me asking, what is the financial planner career path like (salary-wise and work-wise). I ask because I am an Accounting/Financial Planning double major. My Finance degree was tailor made for the CFP designation. I am currently 25% CPA and I haven't ruled out getting the CFP.

FAR - 78 (10/3/11)
AUD - 83 (11/28/11)
REG - 70 (4/7/12), 84 (7/31/12)
BEC - 75! (5/31/12)
Ethics - 98

DONE

[See Pee A]

@posty: I am in the accounting field, however, I did go through campus recruiting last year with financial advisory firms as well. Typically, their salaries are low ($20k-40k). The majority of your comp comes from performance bonus due to your performance, both in sales as well as managing your accounts. A good financial planner, and I mean one who starts managing people's money, can make serious bank ($250k+). But even the best have high volatility in earnings, since it's almost all performance based and will be for your whole career.

That said, it is a completely different field. Real money also comes when you can start getting into managing trusts, estates, and start doing tax planning once you get a good amount of experience. The field is very competitive, since there are many many firms doing it as well as a lot of small shops of just a few people. I have two friends who ended up at Merrill Lynch and ING, and both are doing really well. In summary, more possible upside, but more downside when the market isn't doing so well. Less flexibility also, since you can just up and leave and expect all your clients to stick with you if you're in a different city (some may, if you're that good).

In summary, money definitely isn't the determining factor. In either field, if you are a strong performer you will be heavily rewarded. In terms of relative success, it is probably more difficult to enter the upper echelon in financial advisory than in accounting due to the ultra competitive nature, but both are great fields. Both of my friends at Merrill and ING love their jobs, then again they are typically managing clients with $100k in assets minimum and do very little with insurance (at most they may pull together a few quotes if a client wants to shop around or something). Also, financial planning seems to offer less exit opportunities, since your skill set is fairly specialized. Public accountants go on to do all sorts of things. Of course, 95% of us will have more than one career in our lives, but you just have to decide for yourself where you want to begin while keeping in mind where you (possibly) may see yourself in a decade or two. Good luck!

BEC 86 (08/30/11)
FAR 84 (10/13/11)
REG 88 (11/08/11)
AUD 86 (11/29/11)

Exam prep - Becker self-study

[posty]

@See Pee A – Thanks for the detailed response! I'm not much for risk and volatility. I'll probably ride out the public accounting route for a while and see where it takes me.

FAR - 78 (10/3/11)
AUD - 83 (11/28/11)
REG - 70 (4/7/12), 84 (7/31/12)
BEC - 75! (5/31/12)
Ethics - 98

DONE

[harlodmeck]

Financial planner plays a major role which involves the process that determines the proper management of the financial affairs. Financial planner is a practicing professional who prepares financial planning for people covering various aspects.

wealth management perth | financial planner

[Author]

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