CPA considering career change to financial advisor
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Hi all,
I recently bought a house and got married and as a result, have dug into my personal finances much more recently. This led to a sort of epiphany that I may have chosen the wrong career path (I'm currently a CPA working in Corporate Accounting). A little backstory about myself, I interned at a small financial advising firm in college but was an Accounting major and had tunnel vision with that career path, as older members of my family had gone on to become CPAs with relative success. I went on to get my Masters in Accounting and passed the CPA exam while still in school. I worked in Audit for a Big 4 Accounting firm for almost exactly 3 years and recently left for a Corporate Financial Reporting job, as many auditors do. I knew audit wasn't for me long term and was able to secure a decent raise in my salary with less stress and fewer hours than the audit job. However, I don't necessarily like what I do now any more than I did at the Big 4 firm. I just work a little less and get paid a little more now. My work suffers because of this lack of passion and I'm not sure that I have the drive/passion for this field to climb the corporate ladder for the next 30+ years.
Fast forward to today, I'm 26 years old and I'm strongly considering making a career change. I've always been more interested in business than accounting itself and my interest in Finance/investing has been an itch since my college internship, I just didn't give it enough consideration since I was already on the inside track to become a CPA. We don't have any kids yet and if I do make a career change, it would obviously be easier to do before any kids were in the picture. The biggest thing dissuading me from diving all in is the sales aspect. I don't think I would be unsuccessful but I'd prefer to have a more even split of sales vs. investing research/strategy compared to what most of the firms are (90%+ sales). I don't mind having to do a little sales, especially if I owned my own firm one day, but I'm not sure I want to give up my current career for some financial analysis dream that ends up becoming a career as a salesman.
I've talked to a couple personal contacts, one who works at Edward Jones as an advisor and one who works as the "brains" behind investment strategy for a small boutique firm, and both positions sound intriguing although working in "operations" in the back office is more rare and less lucrative in the long term. If I do make the jump, I want to own my own firm in the long-term. In the short-term, however, I currently make $80k and I'd love a position that provides a salary with a small firm to learn the ropes, get my necessary work experience for the CFP certification, and maintain some of the lifestyle that my wife and I have gotten used to without a huge pay cut if possible. My Edward Jones contact showed me the comp structure and it seems doable in the short term, although most of the work is purely getting new clients vs. investment strategy.
I would love some information from those of you in the industry of what the job is like and if a career change could be worth it for me. What is the day to day work like? What are the hours like? Should I work on a certification before starting somewhere? Is a salaried position pointless compared to being a fee-based advisor if my long term goal is to start my own firm since I'll have to start from scratch building a book? Are salaried positions common and do they pay well for an entry-level or just above entry level? Any info would be helpful and appreciated. Thank you!
depending on where you live, you will have a hard time finding salaried positions in the financial advisory field, the majority of your income will come from sales. If a salary is available it is very low compared to what you make now. A suggestion would be to find a financial advisor firm that also provides tax services and work your way into the advisor side.
The Edward Jones position is all sales. They do have a great training program to get your series 7 and other licenses. I don't know the exact amount of pay for the first two years anymore, but after that it is commission. I left EJ 12 years ago and haven't looked back.
CPA here also. CMA and MBA to boot. Have you looked into the CFP program? Much broader than accounting - most all of the knowledge within CFP will be useful to particular individuals you meet. More interesting I feel. When was the last time your neighbor needed to know something about insurance, trusts, investments, retirement planning? Often. How about booking convertible debt? Nada!
IMHO most financial jobs outside of CPA have it beat in spades. Take a look at CFP and a planning position. You can challenge the knowledge part, are only required to take one online Capstone course ($700 - $1200), then study on your own for the exam. Exam content is not nearly as difficult as the CPA exam - just much, much broader. But readily doable.
Best!
As someone considering a job in financial planning, I understand I may have to start off primarily in sales, but as it progresses, I can use my experience to work at a firm which is primarily fee-based, right? I know that CFP is fee-based, but I assume I could also work my way up at fee-based firms (perhaps after a few years working commission-based at a firm) in a job which gets me financial planning experience while still not working off commission for the most part.
I understand... you must learn how to prospect and bring in new buseinss. Prospecting = full pipeline = leads = New business = you get paid. Solves everything.
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the guide to cold calling is literally the only thing anyone needs to be successful in this industry. I brought in 40 mill in 3.5 years, starting from scratch! I live on the phones and do seminars I will teach you everything . I love to help!!!
bluedemon24, you mentioned Edward Jones in your post, so I'll share my EJ experience. Within the last year I left my job in Information Technology after working in that field for nearly two decades. I had two main motivating factors: 1) Desire to be my own boss and have direct control over how much money I make. 2) I've always been interested in financial products.
Edward Jones did a tremendous job of preparing me for the Series 7 and Series 66 exams, which I passed on the first attempt with scores in the 80s. I also passed my state's insurance exam on the first attempt, so first major hurdles cleared.
Next was a week of KYC (Know Your Customer) training where we did a lot of role playing to prepare us for door knocking. This training was helpful for me since it was not something I had to do for my previous jobs.
Many EJ advisors and former EJ advisors said that door knocking would be the hardest part of the early years at EJ and I would agree with that statement. It's not that knocking on doors is physically difficult, instead it is that only about 20% of the people you visit will open the door, often the "decision maker" is not home and rarely will the resident be interested enough in what you are offering to give you their phone number. That being said if you knock on enough doors at the right time of day you will have success prospecting. I found that door knocking was most effective from 5:15 to 7:30 PM on weekdays and almost all day Saturday. I did not bother people on Sundays.
Now I am working roughly 10 hours per day, 6 days per week, but that's basically what I expected. I think it is reasonable to expect to work very hard for 2-3 years to build your business. If you survive those 2-3 years you can reap the benefits for the rest of your life and leave behind a legacy. If you were to work for Edward Jones you may decide that after your 3 year contract is up you want to go independent or you may decide to stick with EJ.
There absolutely is a strong sales aspect to working for Edward Jones. They have a recipe that works and they don't expect you to be super technical and analytical. They have a research department at the Home Office that reviews stocks and makes Buy/Sell/Hold recommendations. In a nutshell, so far my EJ experience has been positive. I hope whatever decision you make brings you happiness and success. Congrats on the house and marriage.
@czechplease: I hope you purchased enough laundry detergent to wash off all the sweat dripping down your nuts while doing those house calls, you lame fool.
@bluedemon24: Don't listen to these bafoons. Cold calling/selling sucks. You have big 4 experience, I guarantee you'll be missing your clients air conditioned fancy office while your out "prospecting" door to door in the hot sun while your nuts are sweating. Find your satisfaction outside of the work place.
If you are a Certified Public Accountant (CPA) and are considering a career change to becoming a financial advisor, there are a few things you should keep in mind. Firstly, while both professions deal with financial matters, they have different focuses. A CPA primarily provides assurance and tax services, while a financial advisor provides advice and guidance on financial planning and investment management.
Secondly, you will likely need to obtain additional licenses or certifications to work as a financial advisor. The specific requirements vary by state, but you may need to pass the Series 7 and Series 66 exams and register with the Financial Industry Regulatory Authority (FINRA) in order to become a registered representative of a brokerage firm.
Thirdly, you may need to gain experience in financial planning and investment management, which you may not have gained as a CPA. This can be done through internships, mentoring programs, or working in the financial services industry before becoming a full-time financial advisor.
Lastly, it’s important to research the financial advising industry and the specific roles and responsibilities of a financial advisor before making the transition. It may be helpful to speak with professionals already working in the field to understand the day-to-day tasks and the long-term career prospects.
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Bluedemon24, you mentioned Edward Jones in your post, so I'll share my experience with EJ. In the past year, I made the decision to leave my Information Technology job, where I had been working for almost two decades. My motivation stemmed from two main factors: 1) the desire to be my own boss and have direct control over my income, and 2) a longstanding interest in financial products.
Edward Jones played a crucial role in preparing me for the Series 7 and Series 66 exams, both of which I passed on the first attempt with scores in the 80s. Additionally, I successfully cleared my state's insurance exam on the first try, marking significant milestones in my journey.
Following this, I underwent a week of Know Your Customer (KYC) training, involving extensive role-playing to prepare for door-knocking activities. This training was particularly beneficial for me, as door knocking was not a task I had encountered in my previous roles.
Many EJ advisors, both current and former, emphasized that door knocking would be the most challenging aspect of the early years at EJ, and I can attest to that. While the physical act itself is not difficult, the low response rate poses a challenge. Approximately 20% of people would open the door, the "decision maker" was often not at home, and residents were rarely interested enough to provide their phone numbers. Despite these challenges, consistent door knocking during specific times, such as 5:15 to 7:30 PM on weekdays and almost all day on Saturdays, proved effective in prospecting. I made a conscious decision not to disturb people on Sundays.
Currently, I am putting in roughly 10 hours a day, six days a week, which aligns with my expectations. It's reasonable to anticipate working hard for 2-3 years to establish your business. Surviving this initial period can lead to lifelong benefits and the creation of a lasting legacy. If you choose to work for Edward Jones, you might decide, after the initial three-year contract, whether to go independent or continue with EJ.
Working at Edward Jones undoubtedly involves a strong sales component. They provide a proven recipe and don't necessarily expect you to be highly technical or analytical. The Home Office has a research department that evaluates stocks and issues Buy/Sell/Hold recommendations. In summary, my experience with EJ has been positive thus far. I hope the decision you make brings you happiness and success. Congratulations on your house and marriage.