FinancialAdvisory

NicolasLaMorte

EnglishIIIHonors
Mrs.Kopp
February26,2015

LaMorte1

NickLaMorte
Mrs.Kopp
EnglishIIIHonors
February26,2015
FinancialAdvisory
Theprimaryroleoffinancialadvisorsconsistsofdeliveringmeaningful,relevant,and
usefulinformationtoclientsaboutfinancialgoalsandhowtobestachievethem.Theyassist
withinvestments,taxes,andinsurancedecisions.Mostfinancialplanningjobsexistinfinancial
servicesandtheinsuranceindustry.Financialplannerstypicallyworkfulltimeandmaymeet
withclientsintheeveningsoronweekends.Researchindicatesthatthefinancialadvisory
industryhasbecomeincreasinglyanalytical(NofsingerandAbhishek247).Nofsingerand
Abhishekexplain,Becausementalprocessingcapacityislimited,effortfulprocessestendtobe
serial.Effortlessprocessescanoccurinparallel.Thus,analyticalthinkingrequiresmore
concentration(247).Afinancialplanningcareergivesindividualswithentrepreneurialskillsan
opportunitytostartabusiness,or,forthoseindividualslookingtojoinafirm,beginwork
immediately.
Studentsdecisionstoenrollinafinancialplanningcourseinmostcaseshavebeen
influencedindirectlybyfamilyandfamilialties.Suchinfluenceslikelychangeaccordingto
students'ethnicbackgrounds.Girlswillmostlybecomeinfluencedfromfamilyrelationships
whencomparedwithmalestudents.Prospectsforbusinessownershipandoccupational
inheritancecansignificantlymotivatesomeethnicminoritygroupstostudyfinancialplanning
(Willis34).

LaMorte2

Enteringayoungprofessionstillintheprocessofdefiningitselfpresentsachallenge.
Presently,financialadvisorsremainamongthepioneersofthefinancialplanningprofession.
Often,thetroublewiththeinitiatingsideofatrade,pioneeringdoesnotpaywellcomparedto
otherestablishedcareers.Theobstaclesthatblocknewcareerpathscanfrustrateandintimidate
someplannerstothepointwherenovicefinancialadvisorsmaygiveup.Manycomplexities,
uncertaintiesandconfusionsmanyclientsexperienceonadailybasis.Financialplanning
professionalsareobligatedtohelpacustomerachievetheirtargetsthroughtheprinciplesand
practicesofqualityfinancialplanning.
TheeducationalrequirementforattainingaCertifiedFinancialPlanningcertification
consistsoftwomajorparts,oneofwhichbeingthecompletionofcollegeoruniversitylevel
courseworkthroughatleastoneprogramregisteredwiththeCertifiedFinancialPlanningBoard.
Theprogramshouldaddressthemajorpersonalfinancialplanningareasasstipulatedbythe
CertifiedFinancialPlanner(CFP)Board.Thecandidatesmustverifythattheyholdanaccredited
collegeoruniversitybachelor'sdegreeorhigher.Theinstitutionshouldhavecertification,and
thisaccreditationrecognizedbyUnitedStateDepartmentofEducationatthetimethatthe
graduatereceivestheirdegree.Studentsareobligatedtofinishtheircourseworkrequirementsby
thetimetheysitdownfortheCertifiedFinancialPlanningCertificationExamination.
Asafirststeptocertification,studentsmustcompletetheCertifiedFinancialPlanning
CertificationBoard'seducationrequirementsinthemajorpersonalfinancialplanningareas.The
areasincludegeneralprinciplesoffinancialplanning,insuranceplanning,incometaxplanning,
retirementplanning,estateplanning,investmentplanning,interpersonalcommunication,and
professionalconductandfiduciaryresponsibility.Thecourseworkrequiresthecompletionofa

LaMorte3

financialplandevelopment(Capstone).Thecapstone'sobjectivesboosttheknowledge,skills
andabilitiesofindividualsworkingtoachievetheCFPcertification.Inaddition,inorderforone
tobecomeafinancialadviser,theywillneedtopossessexcellentcommunicationandlistening
skills.Theskillisessentialinunderstandingaclient'sneedsandcommunicatingsolutions.A
financialadvisorshouldputthemselvesinthepositiontoexplaincomplexinformationclearly
andprecisely.Everyclientpresentsauniqueneedforthisreason,theplannershouldanalyse
andresearchinformation.Financialplanningentailsclientsconfidingtheireconomicstatusesto
professionalplannersthisentailsthatplannersmustrespecttheprivateandconfidential
informationoftheirclients.Inaddition,passionandinterestinthefinancialproductsand
marketswillserveasmotivationtodevelopacareerinthefinancialplanningprofession.Colleges
havevaryingresourcesandfinancialaidpolicies.Theamountrequiredtocompleteadegree
programinfinancewillvaryfrominstitutiontoinstitution.Studentsaspiringtostudyfinancial
planningareencouragedtocontactthefinancialaidofficepersonally.
Thechallengesexperiencedbyyoungprofessionalstryingtodevelopacareerinthe
financialplanningworldcanseemneverending.Financialplanningfirmsusuallycanturnaway
businessduetothedemandforthisservice.Sincethisfieldisntasseasonedasmoreprominent
fields,thecurrentestablishedadvisorspavedtheirownpaths.Experiencedcoworkersmay
bringaspiringadvisorsintotheprofession,buttheymaysometimeslackthecapacitytobring
themupthroughtheranks.Howtofindandengageaclientpresentsalargequestionfornew
planners.Evenafterdevelopingexperienceinthesector,obtainingnewclientsrequiresmuch
hardwork.Financialplanninginvolvesmultiplestrategiestobuildacareer.Also,planners
cannotescapesellingaproduct.Evenindependentfinancialadvisorsusesomeoneelse'sproduct

LaMorte4

topromotetheirprospect.Learningthetechnicalaspectsoffinancialplanningissimplerthan
learningthesalesandmarketingskillsneededtobuildaclientbase.Thecurrentyoung
generationischangingthewaytheywouldinteractandcommunicatewithclients.Texts
messages,emailsandtweetsvaryfromthemailedlettersthatolderfinancialclientsusually
expectfromtheiradvisers.Onlythebrokerageindustrythathasmadeeffortstoreinventitself
bydesigningonlineplatformswhereuserscanresearchsecuritiesandtradeelectronically.
Inspiteofsubstantialsalaries,thefieldisnotdrawingmuchinterestfromyoungpeople.
Thelackofnewrecruitsintheprofessionmaybemotivatedbythefailureofstudentswhomajor
infinanceormorespecifically,financialplanning,tojointheprofession.Moststudentswho
earnabachelor'sormaster'sdegreesinfinancialplanningfailtotaketheCertifiedFinancial
PlanningCertificationtest.Mostmovetothoserelatedfieldssuchasworkingwithbrokerage
salesagents,financeandbudgetanalyst,orasrealestateagents.Themostprobablereason
behindthechangecouldbethefactthattheseotherpositionscanpayabettersalary.According
tothedataavailablefromtheBureauofLabourStatistics,theaveragepayforfinancialmanagers
restsaround$123,260.Financialservicesalesagentslikebrokers,tradersandinvestment
bankersearnanaverageof$100,910.Theseprofessionsenjoyanabsoluteadvantagethatcan
attractthebeststudentsbecauseofthehighsalaries.Incontrast,anentrylevelfinancialplanner
willearnlessthan$80,000.
Thecurrentyounggenerationischangingthewaytheywouldinteractandcommunicate
withclients.Textsmessages,emailsandtweetsvaryfromthemailedlettersthatolderfinancial
clientsusuallyexpectfromtheiradvisers.Onlythebrokerageindustrythathasmadeeffortsto

LaMorte5

reinventitselfbydesigningonlineplatformswhereuserscanresearchsecuritiesandtrade
electronically.
Internshipscompriseapivotalpartofthejourneytowardsbecomingacompetent
financialadvisor.Successfulinternshipprogramsaddandprovideplentifulexperiencefor
studentspursuingafinancialplanningmajor(Newswire2).AfterinterviewingScottPaul,
managingdirector/executiveoffice,tolearnabouthispositionattheirfinancialplanningfirm.
Withadedicatedstaffof17employeesthatconsistsofsixplannersandthesamenumberof
interns,thefirmmanagesover$250millionforabout190clients(Paul).Hehasengagedinterns
sincetheyear2000.Accordingtohim,thesecretforhissuccessisentirelystraightforward.
Hisgoalinthisinternshippolicyistoengagethestudentsearlierintheircollegecareer
andtokeepworkingatthecompanyuntiltheygraduate.Heexplained,"majorityoflearnersdo
notseekinternshipsuntiltheirsenioryearatcollege,andIseethatasahugemistake(Paul).
Anotherstrategyistheprovisionofplentyofinhousepracticaltraining.Thefirm'sfinance
internsrotateundertheentiresixfinancialadvisorsandreceiveabout120hoursoftrainingper
year.Theyworkonaverageforaperiodof250hourseachsemesterandabout400hoursduring
thesummer.Thefirmpaysmodestwagesstartingat$7anhour,inadditiontobonusesand
movesuptoanaverageof$10bythetimetheyreachtheirsenioryear.However,theexperience
andtrainingtheyreceiveareallinvaluable.
Atrainingstrategyinthisparticularfirminvolvesgivingthetraineesalistofspecific
tasks.Thefinanceinternsundertakeastockresearch,computecostbases,identifywhereto
harvesttaxlosses,helpinthepreparationoffinancialstatements,andengageinsecurities
trading.Inaddition,theyareassignedrevenueprojections,interestratesensitivityanalysisand

LaMorte6

portfolioproposaldevelopment.Internsalsocompletedataentrytobecome"Excelexperts"by
theendoftheirinternship(Paul).
Theworldhascontinuedtoexperienceincreasedcompetitionandpressureonthejob
positionsinthemarket.Thetrendshavepromptedfinancialadvisorstoacquireadditionalskills
andknowledgeinordertofacilitatelandinginthecareeroftheirchoice.Fortunatelyfor
planners,careeroptionshaverecentlyincreased,presentedbyawiderspectrumthanbefore.For
experiencedandtalentedplanners,manyothercareerchoicesareavailable.Financialplanning
studentsneedinformationregardingtheseopportunitiesastheyengageinplanningfortheir
futurecareers(Gibbs85).ScottPaulstatesthatcommunicationskillsarethemostimportantfor
theadvancementofanyfinancialadvisor(Paul).
Forgingcareerpathsfornewfinancialadvisorsremainsatoughbutattainabletarget.
Therearemanychallengesfacedmyentreeleveladvisors.Itisofinterestishowfirms
accommodatethesenewadvisors.Inaddition,howcareerchangersenterthefieldoffinancial
planningwithouttakingmassivecutsinsalary.Thefinancialadvisoryprofessionfailstosupply
ahighqualityoflifefornewentrantsintothefield(Lewin1).However,asignificantamountof
foundationworkhasalreadybeenachievedinthesector.Firmshavecoinedanapprenticeship
programthatusesamentoringmodeltodealwiththeunavoidablechallengeofestablishing
clientbasesandpromotingtheirservices.Firmshaveturnedinternshipprogramsintoawinwin
situationforbothplannersandtheinterns.Companiesprofitwhiletheinternsattainthe
muchneededexperience.Inaddition,anorganizationliketheFinancialPlanningAssociation
makeseffortstoprovideanattractivearrayofresourcesfornoviceplannersandexperienced

LaMorte7

onesalike(Lewin1).Anotherimportantfactorinthecareeradvancementofafinancialadvisor
iscloseandreliablerelationshipswithclients(HansemarkandAlbinsson45).
Thereisanincreasingdemandforfinancialadvisoryservicesthisismotivatedbythe
factthatthemajorityofbabyboomersarenowapproachingtheretirementageandseeking
financialplanninghelp.Inaddition,theaverageageofafinancialadvisorstaysaroundfifty
yearsold.Thisfactorpresentsagoldencareeropportunityforyounggraduateswhoaspireto
makeacareerinthefieldoffinancialplanning.Aftersuccessfullyacquiringexperiencein
financialadvisoryservices,apersoncanchoosetoworkonbehalfoflowerincomeclients.An
opportunityforspecializationinoneofthevarioustypesoffinancialplanningalsoexists.Such
specializationmaybeinpensionandretirementplanningservicesorsavingsinvestments
planning.
Plannerscanalsochoosetomoveupwardswithinthefirmtheycurrentlyworkforand
becomeresponsiblefortheworkofseveralotheradvisers.Forexample,handlingrecruitment
andtrainingofnewemployeesormarketingandpromotingthecompany'sservicescouldbethe
taskofsomeonewhohasmoveduptheranksofafirm.Someplannersengageincompliance
workthatentailsensuringthatinstitutionalrulesandregulationsissuedbyregulatorybodies
remainupheld.Theworkinghourstendtovarydependingontheemployerandthenatureofthe
workassigned.Forplannersworkingasafinancialadvisorinthebankingindustry,oneis
expectedtoworkstandardofficehoursusuallybutsomeinstitutionswillincludeSaturday
mornings.Aplannercanworkinvarioussettingslikeanoffice,abankingcallcenterorareal
estateagency.Ontheotherhandselfemploymentsuppliesanotherlucrativeoptioninfinancial
planning.Themajorityoffinancialsalesconsultantswithasuccessfulemploymentexperience

LaMorte8

tendtoestablishtheirpracticeasindependentfinancialadvisers.Theyenjoytheopportunitiesof
becomingdirectorsorpartnersintheirfirms.
Duringtheonlineinterview,ScottPauldescribedatypicaldayinhisprofession.He
usuallyarrivesatabout7:00am.Thenhepreparesclientreviewsandproposalsforanynew
clientsthathehasobtained.Afterheattendstothenewclients,hefollowsuponadministration
items,emailsandanypendingclientrequests.Usuallyatabout9:00amheconductsreviewsby
phoneorfacetofaceifnecessary.Thenithewillreturnallcallsfromhisclientsandmakeany
necessaryoutgoingphonecalls.At11:00amhehassomeflextimetohavelunch,takeabreak,
relax,orcatchuponanythingthatdidnotgetcompletedduringthemorning.At12:00pmhe
willreturnclientcallsandprepareforanyafternoonappointmentsandalsofinishany
administrativeneeds.1pm3pmheconductsclientreviewsorprospectiveclientproposals.At
3pmhereturnscallsandfinishesanyadministrationneeds.At4pmthedayisfinishedunlesshe
hasaneveningrevieworaproposaldelivery(Paul).
Independentfinancialadvisorshavetheopportunityofworkingfromtheirhomes.They
cantravelorarrangetomeetclientsintheirhomes.Apractitionerwhogivesindependent
financialadvisoryserviceswilloftenrequireworkingintheeveningsandduringtheweekendsto
meettheircustomersneeds(Calhoun15).
Thistypeofflexibilityisnecessaryinthisfieldin

ordertomeetwithclientswhoarenotavailableduringworkdayhours.
Currently,allfinancialserviceproviderscanpresentthemselvesasfinancialadvisors.
However,themajorityoffinancialadvisorscanonlyprovidenarrowlyfocusedadvicetoclients.
Theycanonlyhelpwithinvestments,securitiestradingandinsuranceservices.Clientswill
alwaysexpectfinancialadvisorstogivequalityadvicethattakesintoconsiderationtheimpact

LaMorte9

thattheadvicehasonabroadrangeoffinancialsubjects.Thesetopicsincluderetirement,tax
services,insurance,investmentdecisions,education,andestateplanning.Theprovisionofthe
adviceoughttobeespousedunderafiduciarystandardofcare(AdvertisingAge14).
Atthemoment,therearenouniformregulationsthatensurestrictcompetencyandethics
standardsonthoseofferingfinancialadvisoryservicestoclients.Authoritiescansuspend
brokeragefirmslicenses,butthereisnothingthatcanpreventthesameindividualsfrom
changingandbecomingfinancialadvisors(Owens81).
Withoutcomprehensiveregulatorystandards,currentandprospectiveclientsbecome
exposedtotheriskoffraud.Somelacktheabilitytoconfidentlyidentifycompetentandethical
financialadvisorsinthemarket.Researchhasshownthatsignificantconsumerconfusionposed
bythemanytitlesassociatedwithfinancialplanning.Aprecisedefinitionlacksthetenetsthat
candifferentiateafinancialadvisor,afinancialplanner,investmentadvisorandawealth
manager.Giventhismixup,consumerswholookforfinancialplanningservicescannot
identifyrealfinancialadvisors.Suchcustomersfacetherealriskthattheywillnotreceivethe
servicestheyseek.Consumersremainatalossincaseswhileprofessionalsthatpracticeas
financialadvisorsfailtogivethefinancialplanningservicesrequested.Inotherwords,a
majorityoffinancialadvisorshaveselfidentifiedthemselvesaspartofafinancialplanning
professionincorrectly.Thisscenariocontinuestoexist,andtheresnosignofameaningful
changeinthenearfuture.
Theimportanceoffinancialplanningforconsumerswillcontinuetodriveupdemandfor
financialadvisors.Sustainabilityandadvancementinthefieldoffinancialadvisingrequires
developingaproperanalyticalandcommunicationsskillsettomeaningfullyadviseclients.

LaMorte10

Evenbeforegoinginpractice,however,thoseplanningtobecomefinancialadvisorsshould
pursueapropereducationinfinancialplanning,alongwithtakingadditionalcoursesin
communication.

LaMorte11

WorksCited

AdvertisingAge.Vol.82Issue37.Web.28December2014.1416.
<
http://search.ebscohost.com/login.aspx?direct=true&AuthType=ip,custuid&custid=s845
5861&db=mat&AN=66747615&site=srclive
>
Calhoun,Lindsay
.OccupationalOutlookQuarterly
.Web.3January2015,Vol.58Issue1,
1314.
<
http://search.ebscohost.com/login.aspx?direct=true&AuthType=ip,custuid&custid=s845
5861&db=mat&AN=95536647&site=srclive
>
Gibbs,L.Salisbury,I.
Money
.Web.18December2014,Vol.43Issue10,8085.
<
http://search.ebscohost.com/login.aspx?direct=true&AuthType=ip,custuid&custid=s845
5861&db=mat&AN=99073996&site=srclive
>
Hansemark,OveC.,andMarieAlbinsson."CustomerSatisfactionandRetention:The
ExperiencesofIndividualEmployees."
ManagingServiceQuality:AnInternational
Journal
14.1(2004):4057.
Lewin,Aldeth.
VirginIslandsDailyNews,

The(St.Thomas).
Web.14December2015.
<
http://search.ebscohost.com/login.aspx?direct=true&AuthType=ip,custuid&custid=s845
5861&db=n5h&AN=2W62699486828&site=srclive
>
Nofsinger,JohnR.,andAbhishekVarma."HowAnalyticalisYourFinancialAdvisor?"
FinancialServicesReview
16.4(2007):245268.PRNewswire.
NorthwesternMutual
internshipprogrampreparingthousandsoffuturefinancialadvisors
.Web.20December
2014.

LaMorte12

<
http://search.ebscohost.com/login.aspx?direct=true&AuthType=ip,custuid&custid=s845
5861&db=n5h&AN=201408130900PR.NEWS.USPR.CG8941
>
Owens,M.KingBess,K.Taifa,N.Essence.Web.Feb2015,Vol.45Issue10,p7982.3p.
<
http://search.ebscohost.com/login.aspx?direct=true&AuthType=ip,custuid&custid=s845
5861&db=mat&AN=100272731&site=srclive
>
Paul,Scott.PersonalInterview.10February2015.
Webley,Paul,AlanLewis,andCraigMackenzie."Commitmentamongethicalinvestors:An
experimentalapproach."
JournalofEconomicPsychology
22.1(2001):2742.
Zellmer,WilliamA.
VitalSpeechesoftheDay
.Web.8January2015,Vol.62Issue
20,619622.4.
<
http://search.ebscohost.com/login.aspx?direct=true&AuthType=ip,custuid&custid=s845
5861&db=mat&AN=9608146511&site=srclive
>