Devin Whitworth

Business Term Paper

Assessing a Career in Business

My current career interests lie in the financial industry. I have interviewed several people who
work in different occupations with the financial industry, and find that of a Financial Planner to
be of great interest. I interviewed a family friend, RJ Cunningham, regarding his occupation. I
then spent time researching information about this particular career path. Working with people,
and helping them prepare for their future fits many of my life goals.
Job Description Provide details about the day-to-day duties, the big responsibilities people
in this career have
The job description for a financial planner can vary from company to company. It also depends
on the licenses the particular agent or representative chooses to acquire. In general, a financial
advisor will work to develop financial plans for his clients. The financial planning process,
according to the CERTIFIED FINANCIAL PLANNING board are:
1. ESTABLISH A RELATIONSHIP. Explain planning services and define each of
your responsibilities. Along with compensation, discuss how long the professional
relationship will last and how to make decisions.
2. GATHER DATA AND DEVELOP FINANCIAL GOALS. Talk about the clients
current financial situation and gather any necessary documents. Define personal and

financial goals, including timeframes. Discuss risk tolerance.

3. ANALYZE AND EVALUATE FINANCIAL STATUS.
Analyze the clients assets, liabilities, cash flow, current insurance coverage,
investments and tax strategies.
4. REVIEW RECOMMENDATIONS. Review financial recommendations,
explaining the rationale, so the client can make informed decisions. Then, the planner
should listen to any concerns client concerns, and revise the recommendations if
necessary.
5. IMPLEMENT RECOMMENDATIONS. The client and advisor need to agree on
how the recommendations will be implemented. The planner may carry out the
recommendations, or serve as the clients coach; coordinating the process between
himself, and other professionals, like attorneys or stockbrokers.
6. CONTUINELY MONITOR RECOMMENDATIONS. The financial planner
should monitor progress biannually, to make sure the plan is working. If the planner
is in charge, he should call on the client preferably semi-annually, reviewing the
situation and making any necessary adjustments to his recommendations.
http://www.letsmakeaplan.org/learning-center/FinancialPlanningProcess#sthash.jGuJhJPc.dpu
General Career Path Discuss how you get there from an entry-level position
There are various ways to gain entry into this profession. However, one must be licensed with
the state in which he works. Each broker/dealer has a different process. For example, at Fidelity
Investments they pay for the licensing and start the new planner on a set salary. Once he has
passed the needed exams, Fidelity Investments will move the employee into a call center where
he can help with actual customers at Fidelity. He then has the opportunity to move up the ranks

and become a manager over a book of business.

Another example of a financial planner career path is with Northwestern Mutual. They will not
only pay for licensing, but they will pay for college as well. They will pay for the Life/Health
insurance exam, but then will wait until the student has obtained his bachelors degree, before
they will pay for him to take the Securities exams. They allow the student to work during his
schooling, with a mix of salary and commission.
My final example of a potential career path is one in which the planner chooses to venture out on
his own with an independent broker/dealer. This doesnt mean he doesnt have any help, but
what it does mean is that he is in charge of paying for his own licenses, finding his own clients,
and taking only 100% commission.
There are many differences between the various financial companies. These differences include:
promotions, bonus structure, training, and compensation structure.

General Education Experience Note how much education this kind of career
requires, what kind of degree and any additional certifications
A formal college education is not a necessity to become a financial planner. The only
knowledge that is actually required is the ability to pass the specific state and federal licensing
exams. As long as these tests are passed, a person will be allowed to transact business. However,
there are numerous designations an advisor can obtain. The American College offers these
designations for a price. Once a potential planner has passed the coursework and the required
exam, he can put the designation by his name. Even though these designations arent required,
they will definitely help build credibility with his clients.

Earning one of the many professional designations now available will provide you with a lot of
benefits. Increased marketing exposure, credibility and compensation are just some of the
advantages offered to those willing to fulfill the rigorous requirements for certification
http://www.investopedia.com/articles/financialcareers/07/different_designations.asp
Average Salary Base this on the level of experience needed
The median annual salary for financial advisors was $67,520 in 2012, with the lowest-paid
earning less than $32,280 and the highest-paid earning at least $187,199. On top of their salaries,
many advisors earn substantial bonuses.
Salary Range
75th Percentile

$111,450

Median

$67,520

25th Percentile

$44,140

This number is based on salaries. However, many companies pay 100% commission. Another
variable is the Advisors Book of Business, and the company that advisor is with. For example, I
spoke with a manager at Fidelity who is paid $187,000 a year for managing over $300 million
dollars of clients assets. Speaking with an advisor at another firm, I learned that if someone
where managing $300 million dollars at his firm, he would be paid over $3 million dollars a year.
He said as a general rule of thumb, for every $15 million dollars of clients money under
management, the planer should earn $100,000.
Career Outlook Discuss how optimistic a future for this career is
The Financial Planning career is expected to be one of the faster-growing occupations over the

next decade; with a projected growth rate of 27 percent between 2012 and 2022, according to the
Labor Department. Thats an additional 60,300 new positions on top of the 175,470 financial
advisors listed in 2012. Demand for advisory services is expected to be driven by the wave of
baby boomers retiring. (According to the Pew Research Center, the oldest of the boomers turned
65 in 2011.) At the same time, many companies are developing increasingly powerful online
advisory tools that may meet consumers needs.
http://money.usnews.com/careers/best-jobs/financial-adviser
Bio of someone in the profession This could be the result of a personal interview or research
of someone famous

I interviewed RJ Cunningham in depth, regarding the financial planning career path. He works
for Transamerica Financial Advisors. He started there 6 years ago. He has his Life/Health
Insurance license. He also has his series 6, 63, and 65 licenses, which enable him to sell
securities. Furthermore, he has his CFP and CHfC designations. Transamerica Financial
Advisors is an independent broker/dealer. This means that he does not have to exclusively sell
Transamerica products. He has relationships with many companies and will give his client what
he needs, rather than only what one company sells. He says that is why it is important to work
with financial advisors that have all of their licenses. He says there are many out there who hold
themselves out to the public as financial advisors, yet they only have one license. He says that is
like trying to build a house with only a hammer. It would be nearly impossible!
RJs workdays consist of servicing his current clients, as well as continually seeking additional
clients. He helps clients in all varieties and stages of life situations. He helps young people just
getting out of school to start saving money, and he helps older clients, with millions of dollars to

protect and grow their savings. He also works with many middle agers as well. He said that it is
his belief that no one should be overlooked, and that every one deserves and can benefit from
financial advice.
Pros and ConsIdentify the advantages and disadvantages of the career
At the conclusion of my research I have found that the pros of this profession would be: a
growing market space, a growing need, vast earning potential, and the pleasure of helping people
to be more prepared for their futures.
Cons would be: dealing with people who might have doubts and fears; dealing with people who
may not believe that saving and future planning is a priority; and finally, even though financial
planning is a growing market, there is still a lot of competition.
Your fit with this careerConclude with your assessment of how well-suited you are for
this career
I feel that this career path would work well with my talents and personality. I am good with all
different types of people, and I enjoy talking to everyone I meet. I am currently a server at a
restaurant, where I practice this skill. I also enjoy learning about how to preserve money. While
I have been talking to financial planners for this assignment, I have found the freedom of the job
very enticing. I am currently planning to begin working with Mr. Cunningham part time, to
learn the business.