At this point, I'm honored to get about an email a week from someone asking about how to get into the financial planning business. Sometimes, I get multiple emails in a day!

Here are four examples that I mention on the show today:

Hi Joshua, I consider personal finance and financial planning a hobby and I dole out my amateur advice to friends, colleagues and family. A little bit of background -- I'm 25 years old and currently working as an auditor in big 4 in my third year and I've just been early promoted to Senior Associate. The thing is I don't see myself auditing forever and I really want to get into financial planning. My plan is to start taking the courses for the CFP in May/June 2015 after my busy season is over. I feel secure in my job but I just don't love it. Do you have any advice for a 20 something wanting to transition to a career in financial planning with zero experience?
Hi Joshua, I’m writing because I’d love to get your insight in a career as a financial advisor. A little background on myself, I’m a 28 year old CPA who has worked as an auditor at a large CPA firm for the past 4 years. I’ve been thinking about making a career change, and given my interests I’ve begun looking into possibly starting a career as a financial advisor. I really enjoy the technical side of financial planning, including the tax side of planning, but am also enjoying learning about the investing side as well. In talking with a few other people, I have heard that being a financial advisor is basically a sales job where you are asked utilize your own contacts to push financial products on. What I have heard is basically the only way to make money is to have rich friends or family to get established. I really like the fact that I could be helping people, but the cold calling/pushing financial products on people does not sound appealing. Also, I don’t believe I have the wealthy contacts needed to get established. I would love to get your insight on this matter, and to hear if the stories I hear about careers as a financial advisor are correct. Additionally, I would love to hear any recommendations you would have for somebody looking to get into a career as a financial advisor.
Hi Joshua, In 2013 I became completely obsessed with all things finance. I first picked up books about "stock picking" because I thought that was the way to go, but within a month or two I was recommended The Intelligent Investor, and I've been going with the "boglehead" strategy since then. I have been very lucky in getting a job straight out of college that pays quite well (software industry) and since I started in July 2013 I've saved 70-80% of my take-home income. I figure within 2015 I will become "FI" at age 25. I've been listening to your podcast daily since I discovered it last month, and needless to say it has quickly become my favorite podcast. Keep up the awesome work, I listen to every new episode! I am interested in becoming a fee-only financial planner. Every time I get the opportunity to talk with someone who is also interested in finance (believe me, this is super rare!) I get very excited. Nothing makes me happier, basically. I have a bachelor's degree in Computer Engineering right now. I am wondering, what is the shortest path that I could take to get to the place where I can "hang out a shingle" and start advising people for a small fee? I am not interested in charging for "assets under management"; I simply want to share knowledge with people so they can make their own investments and financial decisions. I want to do the opposite of most advisors basically! I'd be okay charging very little money for just a consultation, because I will be FI. You mentioned in one episode that you got a master's degree in financial planning, and I know you need the CFP certification. With just my bachelor's degree, could I get this CFP and start taking clients? Or would I need other certifications as well?
Hi, Joshua, I have realized over time that I am a poor candidate for the traditional early retirement, and instead, would like to focus my next 15-17 years (roughly age 52-67) on doing something that I like--be it an administrator in a medical business that I believe in, being a health coach for middle age guys trying to get back into shape, or opening a gelato shop in my neighborhood. Actually, my dream job would probably be selling tickets in a booth at a ski resort! Maybe later... I have also thought about becoming a personal finance coach or advisor for docs. I see them make stupid mistakes all the time. I could probably do a series of podcasts on stupid things my partners have done.

It's a great question and there are a bunch of ways to answer it. I decided for today to focus on the big picture answer which is primarily about having a good fit between your skills, your firm, your firm's abilities, and your prospective clients.

I might do another show on the actual steps needed to set up a firm if you want to do it independently.

In this show I go through:

Historical practice models for financial planning
Current practice models
The importance of sales and sales skills
Why you need to know what you bring to the table as a planner
The importance of a great marketing plan
The importance of a solid transition plan
The importance of gaining clarity on what you want to do, who you want to work with, and how you want to work with them

Enjoy!

Joshua

Top Ten Stories of the Year | 2021 Crystal Ball Reconciliation | 12/16/21