Finding clients before designations

77 replies [Last post]
Wildcat_02's picture
Offline
Joined: 2006-09-04

As a newcomer to the FA area, but not the financial industry, I was wondering...
I am already Series 7 licensed, so my training program will also involve me acquiring the 66 and Insurance licenses.  Within the two-year program, I will also be sitting for the CFP designation, and my own personal goal is to eventually gain my CFA charter. 
The question is, how does one obtain new clients' confidence (ESPECIALLY strangers), before obtaining at least the CFP?  More importantly, why would a client chose someone at my firm who is not designated v. one that is?

knucklehead's picture
Offline
Joined: 2006-07-27

If you think you're gonna gain people's confidence with a bunch of letters after your name, you are dead in the water.

NASD Newbie's picture
Offline
Joined: 2005-08-01

For those who have not been following along--Knucklehead is proud of the fact that he was not smart enough to pass Series 7, that he screws everybody he can with high juice annuities, and that he will never be able to get a CFP because he doesn't have the requisite background.
That he denigrates anything and everything that bears the earmarks of a successful financial professional is not unexpected.
Pay attention to nothing--as in NOTHING--he has to say.

Philo Kvetch's picture
Offline
Joined: 2005-05-17

He's already forgotten much more than you'll ever know.

anonymous's picture
Offline
Joined: 2005-09-29

Wildcat, it has been my personal experience that the subject of designations almost never comes up.  The best way to instantly have credibility is to get referrals from well respected people.

Cowboy93's picture
Offline
Joined: 2005-05-10

I generally concur w/NASD's assessment above about
knucklehead/dirk...except that his comment above does ring
true.

NASD Newbie's picture
Offline
Joined: 2005-08-01

anonymous wrote:Wildcat, it has been my personal experience that the subject of designations almost never comes up.  The best way to instantly have credibility is to get referrals from well respected people.
I disagree, and I think their imporance is going to become even more critical in the coming years.
We're reading about the "group" Bill Singer is trying to start to open the business up to the bandits and thieves.
A very similar grassroots effort could be started to develop the image that the only people who can be trusted are those with CFP designations.  I am amazed it hasn't happened already.
Saying that not having a CFP is not a disadvantage is akin to trying to prove a negative--when you don't get a deal you are rarely told that the reason was because you didn't have something.
But when you do close a deal it may very well be because your business card said CFP after your name.  People do notice your card, they notice things like titles and professional qualifications.  Only those without such things on their cards will swear that they don't matter.
What I've never thought was very good is "Assistant Vice President," which seems more like an insult than a reward.

Cowboy93's picture
Offline
Joined: 2005-05-10

I agree...to some extent the personal finance press pukes are already pushing the CFP as minimum standard gospel...they may not be the best people to give advice, but people read it.  All things being equal, it's obviously better to have a respected designation.

Indyone's picture
Offline
Joined: 2005-05-30

What I've never thought was very good is "Assistant Vice President of Paperclips," which seems more like an insult than a reward.
Forgive me for the editorial license...I just couldn't help myself...
Agree with your premise...assistant vice seems a redundant insult...

rightway's picture
Offline
Joined: 2004-12-02

I have a CFP tm  and am a  CFA and I have found both of the
designations useful.  The CFP tm helps with the general HNW retail
business, especially when working with estate and tax planning
issus.  The CFA has been valuable in that we target large assets
pools and we run private portfolio's.  Discouraging the pursuit of
such designations is just not right.    

Lieberman's picture
Offline
Joined: 2006-08-22

rightway wrote:Discouraging the pursuit of such designations is just not right. Ida know, Philo thinks that guy used to be a genius.

troll's picture
Offline
Joined: 2004-11-29

Indyone wrote:What I've never thought was very good is "Assistant Vice President of Paperclips," which seems more like an insult than a reward.
Forgive me for the editorial license...I just couldn't help myself...
Agree with your premise...assistant vice seems a redundant insult...You rock!

NASD Newbie's picture
Offline
Joined: 2005-08-01

joedabrkr wrote: Indyone wrote:
What I've never thought was very good is "Assistant Vice President of Paperclips," which seems more like an insult than a reward.
Forgive me for the editorial license...I just couldn't help myself...
Agree with your premise...assistant vice seems a redundant insult...
You rock!
You two yo-yos would kill to have my deal.
I'm sixty-one and drawing a rare defined benefits pension of close to $300,000 per year--in addition to my (so far) excellent run with Google strips, straps and straddles and a semi impressive 401(k) that I let my wife fool around with.
She keeps telling me about the Fortune Brands she bought at 36.  When she does I ask her how the Boston Chicken is working out.
What you boys have to remember is that I'm the expensive overhead that you whine about--but see if you can arrange your life in such a way that when you're my age you'll be able to have a pension that pays you more than you're making now.  You should be able to do that, right--after all you're world class financial advisors, right?
A bit of news based on a dinner conversation last evening.  The wife is coming around to the idea that we leave the Big Apple--Hilton Head or Amelia Island are attractive, but we like to travel so much we will probably just buy a condo somewhere so we can simply close it up and hit the road most of the year.
Atlanta more than likely--got lots of friends there and from what I hear they have an airport.
She, more than me, hasn't wanted to leave because of things she does--minor league patron of the arts type stuff mostly--but we both especially love our bus ride up to 96th and B'way and our stroll back to midtown several nights a week--even in the dead of winter.  Well, in winter we ususally get off the bus in the 80s 'cause that wind can rip you a new one on certain days.
Sometimes we ride the subway to Christopher Street, have dinner in the Village, and stroll back up Sixth Avenue to Midtown.
We both worry that if we get away from the walking we won't get enough exercise--but I keep reminding her that those walks almost always involve stopping off somewhere for an ice cream, or a chunk of something that tastes good but is the epitome of "A moment on the lips, a lifetime on the hips."
Have you ever walked though Central Park in a gentle rain?  Nothing beats it.  New York is a fantastic place when you don't have to ask yourself if you can afford to do what you'd like to do--and I'm not talking about putting on a tux every weekend and going to some big deal.
But when there's thirty live theaters going within a ten minute walk of your house--well, your apartment--and there's Central Park, and Lincoln Center, and Rockefeller Center, and the Yankees, and tennis, and pizza on every corner what is there not to love?
But we've been here long enough--like the swallows there comes a time to go home.
NYC real estate is still hot as fire--we should be able to sell our place up here and buy a place down South for what we made in profit alone in the city so nice they named it twice.
Yep, being in charge of ordering paper clips was a horrible gig.  You should be so lucky.

knucklehead's picture
Offline
Joined: 2006-07-27

NASD Newbie wrote:joedabrkr wrote: Indyone wrote:
What I've never thought was very good is "Assistant Vice President of Paperclips," which seems more like an insult than a reward.
Forgive me for the editorial license...I just couldn't help myself...
Agree with your premise...assistant vice seems a redundant insult...
You rock!
You two yo-yos would kill to have my deal.
I'm sixty-one and drawing a rare defined benefits pension of close to $300,000 per year--in addition to my (so far) excellent run with Google strips, straps and straddles and a semi impressive 401(k) that I let my wife fool around with.
She keeps telling me about the Fortune Brands she bought at 36.  When she does I ask her how the Boston Chicken is working out.
What you boys have to remember is that I'm the expensive overhead that you whine about--but see if you can arrange your life in such a way that when you're my age you'll be able to have a pension that pays you more than you're making now.  You should be able to do that, right--after all you're world class financial advisors, right?
A bit of news based on a dinner conversation last evening.  The wife is coming around to the idea that we leave the Big Apple--Hilton Head or Amelia Island are attractive, but we like to travel so much we will probably just buy a condo somewhere so we can simply close it up and hit the road most of the year.
Atlanta more than likely--got lots of friends there and from what I hear they have an airport.
She, more than me, hasn't wanted to leave because of things she does--minor league patron of the arts type stuff mostly--but we both especially love our bus ride up to 96th and B'way and our stroll back to midtown several nights a week--even in the dead of winter.  Well, in winter we ususally get off the bus in the 80s 'cause that wind can rip you a new one on certain days.
Sometimes we ride the subway to Christopher Street, have dinner in the Village, and stroll back up Sixth Avenue to Midtown.
We both worry that if we get away from the walking we won't get enough exercise--but I keep reminding her that those walks almost always involve stopping off somewhere for an ice cream, or a chunk of something that tastes good but is the epitome of "A moment on the lips, a lifetime on the hips."
Have you ever walked though Central Park in a gentle rain?  Nothing beats it.  New York is a fantastic place when you don't have to ask yourself if you can afford to do what you'd like to do--and I'm not talking about putting on a tux every weekend and going to some big deal.
But when there's thirty live theaters going within a ten minute walk of your house--well, your apartment--and there's Central Park, and Lincoln Center, and Rockefeller Center, and the Yankees, and tennis, and pizza on every corner what is there not to love?
But we've been here long enough--like the swallows there comes a time to go home.
NYC real estate is still hot as fire--we should be able to sell our place up here and buy a place down South for what we made in profit alone in the city so nice they named it twice.
Yep, being in charge of ordering paper clips was a horrible gig.  You should be so lucky.

Thanks for sharing that with us. I feel a lot closer to you.

NASD Newbie's picture
Offline
Joined: 2005-08-01

knucklehead wrote:
Thanks for sharing that with us. I feel a lot closer to you.
You're welcome.  If I  had known how much you care I would have invited you to mass today--I did the collection plate drill.  We could  have used a generous soul such as yourself.
http://www.actorschapel.org/

knucklehead's picture
Offline
Joined: 2006-07-27

NASD Newbie wrote:
knucklehead wrote:
Thanks for sharing that with us. I feel a lot closer to you.
You're welcome.  If I  had known how much you care I would have invited you to mass today--I did the collection plate drill.  We could  have used a generous soul such as yourself.
http://www.actorschapel.org/

My dad is Jewish and was asked to do the collection basket-on-a-pole at St. Patrick's in NY. He was glad to help, but noone told him that making a dontation to the basket is voluntary, so he just kept standing there until people gave in and threw something in the basket.

NASD Newbie's picture
Offline
Joined: 2005-08-01

knucklehead wrote:
My dad is Jewish and was asked to do the collection basket-on-a-pole at St. Patrick's in NY. He was glad to help, but noone told him that making a dontation to the basket is voluntary, so he just kept standing there until people gave in and threw something in the basket.
Damn Knuckle, it sounds like your father is even dumber than you.  Who could not know that making a church offering is voluntary?
Do you know your mother, or were you found on the steps of a Temple?

Indyone's picture
Offline
Joined: 2005-05-30

Nasty, it all sounds nice, but really, I'm fine.  I've just opened my solo(K) and will dump about half the max in this year, and start maxing it out next year, assuming a very modest amount of growth (I know, I know, the bottom is falling out and next year I'll be destitute).  Will I have $300K/year in retirement?  Don't know.  I'm comfortable that I'll have more than enough.
The AVP of paperclips was something I just couldn't resist and besides, it wasn't really directed at you.  I think even Joe acknowledges that you were probably at a rank of VP.

Wildcat_02's picture
Offline
Joined: 2006-09-04

All,
Appreciate the comments.  One more question for those in the camp that think a designation is a benefit in gaining clients...
Assuming it takes me from now to the normal period to gain my CFP (and the CFA is three years off, by nature), what's a proactive method, in your opinion(s), to building a book of business pre-designation?

knucklehead's picture
Offline
Joined: 2006-07-27

Wildcat_02 wrote:
All,
Appreciate the comments.  One more question for those in the camp that think a designation is a benefit in gaining clients...
Assuming it takes me from now to the normal period to gain my CFP (and the CFA is three years off, by nature), what's a proactive method, in your opinion(s), to building a book of business pre-designation?

If you need to be a cfp to build a book, how can you build a book without being a cfp? Now that I think about it...how did I build a book without being a cfp? Oh, yeah. I remember...I worked hard, figured out what people and wanted and sold it to them. Gosh, I'm smart.

Proton's picture
Offline
Joined: 2005-08-28

I am in the group that thinks CFP status is a good idea.  However, it really won't make any difference to the relative success of your prospecting methods.
The CFP is not a magic bullet that will feed qualified prospects into your office.  In other words, you will need to use the same prospecting methods before and after you are certified.
There are any number of ways (cold calling, seminars, networking, etc.) that are used by many folks to prospect.  My advice to you is to try a couple methods and find the one that works best for you.
Your next step is to work hard over the coming years to prospect with the goal of getting qualified people into your office that will ultimately become clients.  If you think this sounds like a long and tedious process, then I've succeeded in explaining the reality of the business for a newcomer.
Bottom line - CFP is still a great idea, but it does not (and never will in my opinion) replace the need for hard work in building a business.

Wildcat_02's picture
Offline
Joined: 2006-09-04

Proton wrote:
I am in the group that thinks CFP status is a good idea.  However, it really won't make any difference to the relative success of your prospecting methods.
The CFP is not a magic bullet that will feed qualified prospects into your office.  In other words, you will need to use the same prospecting methods before and after you are certified.
There are any number of ways (cold calling, seminars, networking, etc.) that are used by many folks to prospect.  My advice to you is to try a couple methods and find the one that works best for you.
Your next step is to work hard over the coming years to prospect with the goal of getting qualified people into your office that will ultimately become clients.  If you think this sounds like a long and tedious process, then I've succeeded in explaining the reality of the business for a newcomer.
Bottom line - CFP is still a great idea, but it does not (and never will in my opinion) replace the need for hard work in building a business.

I can do hard work - no problem!  Thanks for the advice...

anonymous's picture
Offline
Joined: 2005-09-29

The keys to success in this industry fall in this order.
1)Prospecting ability2)Sales ability3)Knowledge (a distant 3rd)
People with prospecting ability, but no sales ability or knowledge can do everything joint work and make a fortune.  People with knowledge, but no prospecting ability end up as paraplanners making $50,000.
It probably takes 500 hours to study for the CFP (just a guess).  In 500 hours, you can walk into 5000 businesses or make 25,000 phone calls.  What's a better use of your time...working or studying?
This is a very tough business.  Time spent studying is going to hurt your chances to survive.  Spend all of your time working on the tasks that will guarantee your survival.  Once your survival is guaranteed, then you can spend the time getting designations.
   

NASD Newbie's picture
Offline
Joined: 2005-08-01

There is a saying that goes like this:
Work Smart Rather Than Hard
Those who are advising that having a CFP designation is not necessary are those who cannot get a CFP designation so they are trying to convince you to join them at the lower end of the spectrum.
Don't do it.  Getting the CFP designation is going to become a minimum standard for credibilty and when it does those who don't have it will fade into the background.

knucklehead's picture
Offline
Joined: 2006-07-27

NASD Newbie wrote:
There is a saying that goes like this:
Work Smart Rather Than Hard
Those who are advising that having a CFP designation is not necessary are those who cannot get a CFP designation so they are trying to convince you to join them at the lower end of the spectrum.
Don't do it.  Getting the CFP designation is going to become a minimum standard for credibilty and when it does those who don't have it will fade into the background.

NASDY, I'm a CPA with a Master's in Accounting. People don't care about the letters after my name. They care whether or not they like me and if I'm telling the truth. People can SENSE the truth when they hear it.

troll's picture
Offline
Joined: 2004-11-29

anonymous wrote:
It probably takes 500 hours to study for the CFP (just a guess).  In 500 hours, you can walk into 5000 businesses or make 25,000 phone calls.  What's a better use of your time...working or studying?
Perhaps the solution is to not study during hours when you could be prospecting......

NASD Newbie's picture
Offline
Joined: 2005-08-01

knucklehead wrote:
NASDY, I'm a CPA with a Master's in Accounting. People don't care about the letters after my name. They care whether or not they like me and if I'm telling the truth. People can SENSE the truth when they hear it.
First I don't believe you regarding the CPA and Masters.  You're too dishonest and focused on taking the short cuts for that to be true, but it's also irrelevant.
The fact is that the industry is grasping at logical steps to develop a more professional image.
With the ongoing attack on the NASD being discussed on another thread the industry has even more compelling reasons to dump the uneducated.
Because of the one firm one vote rule at NASD things like education requirement can never pass--however, what can happen is an organization such as SIA (which is big firm driven) could start an "Investor Education" program that delivers the message that if your broker does not have the CFP designation they are not to be trusted.
Put ads like that in widely distributed retail financial mags, in the WSJ, in Investors Daily, and on talking head shows such as Fox's Business Block and you will reach about 90% of the retail investors.
Next get the Investment Company Institute on board.  If the ICI--which represents the mutual fund industry--establishes a rule that their members may only allow CFP licensed representatives to earn trails not having a CFP becomes damn near fatal.
It's crazy to think that Wall Street is going to lose its power and prestige to the sleazy members of the NASD--and if they're going to fight that they might as well fight for other things as well.
The industry needs to purge itself of people who are unable to obtain a CFP--the biz needs people without CFPs like it needs a dose of clap.

Philo Kvetch's picture
Offline
Joined: 2005-05-17

Is that why you were forced out?  Because you didn't have a CFP or because you had (have?) the clap?

knucklehead's picture
Offline
Joined: 2006-07-27

NASD Newbie wrote:
knucklehead wrote:
NASDY, I'm a CPA with a Master's in Accounting. People don't care about the letters after my name. They care whether or not they like me and if I'm telling the truth. People can SENSE the truth when they hear it.
First I don't believe you regarding the CPA and Masters.  You're too dishonest and focused on taking the short cuts for that to be true, but it's also irrelevant.

You crack me up.

anonymous's picture
Offline
Joined: 2005-09-29

"Perhaps the solution is to not study during hours when you could be prospecting......"
It sounds good, but I'm just curious, when are these hours?
There might come a day when the CFP is needed, but today is simply not that day.  I know a lot of million dollar producers, but only one has a CFP and he became a million dollar producer before he got his CFP.
A new guy simply can't afford to spend time doing things other than prospecting. 
 

knucklehead's picture
Offline
Joined: 2006-07-27

The only people who are impressed with cfp's are other cfp's.

rightway's picture
Offline
Joined: 2004-12-02

knucklehead wrote:The only people who are impressed with cfp's are other cfp's.

No, this is not true.  Many people begin their search for an
advisor by making this the first screen.  Having the designation
helps and certainly can never ever do any harm. 

troll's picture
Offline
Joined: 2004-11-29

anonymous wrote:
"Perhaps the solution is to not study during hours when you could be prospecting......"
It sounds good, but I'm just curious, when are these hours?
That would be after 8PM and before 5AM. Let me guess, you're cold calling at those hours, right?
anonymous wrote:
There might come a day when the CFP is needed, but today is simply not that day.  I know a lot of million dollar producers, but only one has a CFP and he became a million dollar producer before he got his CFP.
You might want to look into when they started their careers (these million dollar producers you know). There's a world of difference in the biz today and for people begining now than the biz the guys starting even as recently as ten years ago saw.
anonymous wrote:
A new guy simply can't afford to spend time doing things other than prospecting. 

You find me someone prospecting 24 hours a day and we'll talk. Until then, whether you as a non-CFP like it or not, it's a worthwhile use of time when you aren't Prospecting.
BTW, I read through the last "top dog" type article in the trades and was struck by how few of those guys lacked the CFP designation and how not a single one carried an insurance designation on their cards.
 
'Just saying...
 
 

troll's picture
Offline
Joined: 2004-11-29

knucklehead wrote:The only people who are impressed with cfp's are other cfp's.
Funny, the only people that dismiss them are people in the industry that don't have them. I've yet to see a client who didn't think it was a plus and I've yet to a consumer-focused article that played it down....

anonymous's picture
Offline
Joined: 2005-09-29

Mikebutler, I agree that if a new guy has some time between 8:00 P.M and 5:00 A.M. he can study.  I'm not arguing that it's not worthwhile.  I'm arguing that a new person has so much other stuff on their plate that taking time to get letters after their name will decrease their chance for success.
The odds are so stacked against a new guy succeeding.  All of his time during the day needs to be spent seeing people and fighting to see them.  This means that the evenings must be spent getting work done.
I know that CFPs feel that the designation is so important.  I can just speak for myself that the subject almost never gets broached and my practice is almost exclusively business owners.   I am not anti-cfp and will be sitting for it next year.  I'm just not expecting it to have any impact on my practice,........but I might be wrong, thus I'm getting it.
 

WealthManager's picture
Offline
Joined: 2006-05-16

anonymous wrote:
I'm not arguing that it's not worthwhile.  I'm arguing that a new person has so much other stuff on their plate that taking time to get letters after their name will decrease their chance for success.

 
I’m two months into the POA program at ML.  I’ll be sitting for the CFP in March which is about a week after I go production and start needing to gather AUM.  So far I believe that what I’ve been learning will be helpful to me when I do finally get out there.<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
 
--WM
 

JimmytheRocker's picture
Offline
Joined: 2006-06-27

WealthManager wrote:anonymous wrote:
I'm not arguing that it's not worthwhile.  I'm arguing that a new person has so much other stuff on their plate that taking time to get letters after their name will decrease their chance for success.

 
I’m two months into the POA program at ML.  I’ll be sitting for the CFP in March which is about a week after I go production and start needing to gather AUM.  So far I believe that what I’ve been learning will be helpful to me when I do finally get out there.<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

--WM
 

Nothing wrong with that.  If you have base salary, it's not a bad idea.
However, if you're an independent and need the cash now, I'd start selling ASAP.  Afterall, it would be unfortunate to go through all of that education when relationship building is what drives your business. 

JimmytheRocker's picture
Offline
Joined: 2006-06-27

WealthManager wrote:anonymous wrote:
I'm not arguing that it's not worthwhile.  I'm arguing that a new person has so much other stuff on their plate that taking time to get letters after their name will decrease their chance for success.

 
I’m two months into the POA program at ML.  I’ll be sitting for the CFP in March which is about a week after I go production and start needing to gather AUM.  So far I believe that what I’ve been learning will be helpful to me when I do finally get out there.<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

--WM
 

 
Come to think of it, you can study and network/prospect at the same time.  Planting seeds and enhancing relationships pan out overtime.  So, you can do that now. 

anonymous's picture
Offline
Joined: 2005-09-29

WealthManager, if you can get the CFP now, that is good.  It just doesn't make sense when you have to produce and fighting like hell to stay in the business.

knucklehead's picture
Offline
Joined: 2006-07-27

A funny thing happened today...I netted an even $4,000.00 today. $50,000 ticket paid at 8%, not subject to the grid.
Not a huge day, but not bad either. The funny part is that I did it without being a CFP. How can that be, you ask? It's nothing short of a miracle.

rightway's picture
Offline
Joined: 2004-12-02

knucklehead wrote:A funny thing happened today...I netted an even $4,000.00 today. $50,000 ticket paid at 8%, not subject to the grid.
Not a huge day, but not bad either. The funny part is that I did it
without being a CFP. How can that be, you ask? It's nothing short of a
miracle.

No, not a miracle.  This is your job, and you get paid for
it.  There are no CFP tm certificants taking those trades from
you.   There is no doubt people can do well without any
designations at all...but that is no reason to NOT pursue them. 
There are benefits, both personal and professional, of getting them so
putting them down is just a waste of time.

rightway's picture
Offline
Joined: 2004-12-02

knucklehead wrote:A funny thing happened today...I netted an even $4,000.00 today. $50,000 ticket paid at 8%, not subject to the grid.
Not a huge day, but not bad either. The funny part is that I did it
without being a CFP. How can that be, you ask? It's nothing short of a
miracle.

Now the sarcastic version:  I bought at stock at 10:00 this
morning and it was up 1% by the end of the day.  It is good to be
averaging a 365% annualized rate of return.  Nothing like taking
short term success and giving it too much credit.

Sorry- I normally don't do this but I thoguht it was funny.

knucklehead's picture
Offline
Joined: 2006-07-27

rightway wrote: knucklehead wrote:
A funny thing happened today...I netted an even $4,000.00 today. $50,000 ticket paid at 8%, not subject to the grid.
Not a huge day, but not bad either. The funny part is that I did it without being a CFP. How can that be, you ask? It's nothing short of a miracle.
No, not a miracle.  This is your job, and you get paid for it.  There are no CFP tm certificants taking those trades from you.   There is no doubt people can do well without any designations at all...but that is no reason to NOT pursue them.  There are benefits, both personal and professional, of getting them so putting them down is just a waste of time.
Waste of time and money could be a reason, couldn't it?

rightway's picture
Offline
Joined: 2004-12-02

knucklehead wrote:rightway wrote: knucklehead wrote:
A funny thing happened today...I netted an even $4,000.00 today. $50,000 ticket paid at 8%, not subject to the grid.
Not a huge day, but not bad either. The funny part is that I did it
without being a CFP. How can that be, you ask? It's nothing short of a
miracle.
No, not a miracle.  This is your job, and you
get paid for it.  There are no CFP tm certificants taking those
trades from you.   There is no doubt people can do well
without any designations at all...but that is no reason to NOT pursue
them.  There are benefits, both personal and professional, of
getting them so putting them down is just a waste of time.
Waste of time and money could be a reason, couldn't it?

I can only draw from my experiences and I was in your camp for 7 years
producing without any certifications and in fact did very high levels
of production. 

Then I went and got the CFP tm and saw the other side of things...and
there are benefits that you do not see.  These benefits are not a
waste of time, and in my case my firm paid all costs associated with
getting and maintaining all designations. 

No shakes against the poeple that choose to not get them...they can do
very well for themselves and their clients.  I just don't like
those throwing rocks at the poeple pursuing them.

knucklehead's picture
Offline
Joined: 2006-07-27

Have you factored in the opportunity cost of diverting your focus? STudying could cost me over $100,000 in lost income! Also, I'm a Master's level accountant. I already feel all warm and fuzzy inside. I don't need a trademarked logo after my name.

ribsnwhiskey's picture
Offline
Joined: 2006-08-16

anon-
I hope that you aren't saying that it takes 500 hours of study time for the exam alone.  If someone needs that many hours to pass the exam, they should find another profession. 
If someone went through a 'program', to obtain the education requirement they would have to go through 6 classes (some programs have more, but only 6 is required).  They would probably be once a week for 12 weeks and a 3 hour class.  So thats 36 hours per class in attendance alone, & 216 total classroom hours for the entire curriculum. 
Even then, if you need to put in an additional 284 hours of study time for the exam, that seems a little steep. 
If someone were to go and do the online program, they could get it done even faster and easier.  Point being, it's not that much work like people make it out to be.  If everyone knows thier stuff in this business like so many of your claim, this test should be a breeze and you should get it out of the way. 
I may have to agree with Newbie for once, I think that the CFP will be a minimum that most affluent people look for within the next 5-7 years.  Notice I said a minimum.  For youngsters with just a series 7 to be running around, that can be a scary thought. 
The only substitute for credentials is probably experience.  And a good bit of it. 

anonymous's picture
Offline
Joined: 2005-09-29

ribsnwhiskey, I'm just guessing at the study time.  However,  500 hours only equates to 3 months of full time studying.  I'm talking total time to prepare for the exam including classes.
I get asked about the CFP about 3-4 times a year.  I think that I've only been asked once in the last 6 months.  The question never comes from an affluent client.  It seems like the question only comes from DIY type people who have read an article in "Money Magazine" or something similar on 'traits to look for in a financial advisor'
About 5 years ago, I considered getting my CFP because the question was starting to be raised about once a month.  I felt that it would become more of an issue every year.  Curiously enough, the subject seems to come up less frequently each and every year.

rightway's picture
Offline
Joined: 2004-12-02

The prospects and clients who see no value in the CFP tm designation
will be just fine working with those sales reps without it...so they
will NOT ask about it.  Those prospects and clients that DO value
it will likely never even meet with someone who does not have the
designation...therefore those without never see these people and never
be asked the question.

I am surprised so many people are actively AGAINST the darn thing. 

rightway's picture
Offline
Joined: 2004-12-02

knucklehead wrote:Have you factored in the opportunity cost of
diverting your focus? STudying could cost me over $100,000 in lost
income! Also, I'm a Master's level accountant. I already feel all warm
and fuzzy inside. I don't need a trademarked logo after my name.

Why waste the time with a masters in accounting?  That education
can and should be learned in real life situations, not in some school
books.  Talk about a waste of time and money.

knucklehead's picture
Offline
Joined: 2006-07-27

rightway wrote: knucklehead wrote:
Have you factored in the opportunity cost of diverting your focus? STudying could cost me over $100,000 in lost income! Also, I'm a Master's level accountant. I already feel all warm and fuzzy inside. I don't need a trademarked logo after my name.
Why waste the time with a masters in accounting?  That education can and should be learned in real life situations, not in some school books.  Talk about a waste of time and money.
I can schmooze with CPA's...I'm in the club. YOU can't do that.

rightway's picture
Offline
Joined: 2004-12-02

Nice "club".  Trust me sport, I don't need to "schmooze" (whatever
value that adds) with any more CPA's.  We disagree.  Good
luck and good selling.

Please or Register to post comments.

Industry Newsletters
Careers Category Sponsor Links

Sponsored Introduction Continue on to (or wait seconds) ×