Running Head:SUCCEEDING AS A YOUNG FINANCIAL ADVISOR 1

Succeeding as a Young Financial Advisor

Nihit Chavan

East Carolina University

ENGL 2201

12 July 2019
Succeeding as a Young Financial Advisor 2

Abstract

The average age of a financial advisor in America is 59. Let that sink in. It is one of the

oldest professions in the country. This interview exists to show how a younger individual can

succeed in an older industry. The CEO provides insight into how he runs his company and it is

interesting to see the connection between employee and their employer. They frequently discuss

the age gaps and how it can be rewarding for a younger person to build relationships early on and

find a good firm where they can grow. By finding a firm that you believe in you can create a

positive work environment where you can feel good about what you do. Financial advising is a

field that you want to have your client’s best interests instead of just selling vague sales pitches.

A good firm is key to a young financial advisors future in the field. By working with highly

connected individuals who are older you gain insight and advice into financial planning as well.

With the majority of existing financial advisors retiring, the industry is projected to grow quickly

in the next few years. The most important part is to whole-heartedly believe in what you are

advising instead of trying to sell a “product”. I am carrying out my investigation by researching

with youtube videos and articles in the financial industry trade. I completed background research

by using what I learned from a previous research paper on the financial industry. By using my

current knowledge and combining that with newfound information on the age gap that exists, I

was able to fully comprehend the industry as a whole.

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Introduction

A financial advisor provides advice to individuals on things such as mortgages, car

payments, budgeting, taxes, and retirement. A advisor my work for a firm or a specific business

however, many are self employed. A day in the life can include answering emails, meeting with

clients, and creating financial plans. This is a rewarding field due to how much it is due to grow

within the next few years and how you can find happiness in helping people make some of their

most important financial decisions. People who succeed in this industry often find the right firm

top to work for, or they are self employed with many clients. A similar occupation is an

accountant. However the difference between the two are that accountants focus more on taxes

while advisors focus on how to grow your existing money with investments. Other occupations

include financial analysts, managers, and sales agents. However, I believe a career in financial

advising is more rewarding and actually helps you establish a possible relationship with your

clients. Our generation needs to seriously consider the occupation of a financial advisor.

Rationale

A new generation for financial advising and and an entirely new business strategy created

by social media and new technology that allows advisors to always stay in contact with their

clients. In fact most financial advisors are people who switched jobs mid way through their

career. I am investigating why more younger people decide not to get into the financial advising

industry.

Research Design
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My research was conducted using both qualitative and quantitative data. I used qualitative data to

describe certain aspects in the day-to-day life of a financial advisor. I used quantitative data to

describe the statistics that would directly imply to the growing industry of financial advising and

to tell readers that the average age of financial advisors is much higher than the industry

standards.

Methodology

I am carrying out my investigation by researching with youtube videos and articles in the

financial industry trade. I completed background research by using what I learned from a

previous research paper on the financial industry. By using my current knowledge and combining

that with newfound information on the age gap that exists, I was able to fully comprehend the

industry as a whole.

Discussion

Jeff Benjamin of investment news said “Cerulli Associates estimates that 29% of the

country's more than 300,000 financial advice professionals are between ages 55 and 64, and

another 12% are over age 65. The largest group, at 33%, is between 45 and 55. The drop-off is

precipitous from there, down to 16% of advisers between ages 35 and 44, and just 10% under

age 35.” This means firms are going out of their way to hire younger financial advisors. These

firms don’t need anymore sales people but will need new advisors for their existing clients when

their existing advisors retire. Mike Foy, who is a Senior Director of the Wealth and Lending

Intelligence at J.D. Power said. "In its place, the new generation of mobile financial advisors is

interacting with clients and prospects via a range of digital channels including social media, text,

chat and video. Wealth management firms that embrace these technologies and train and
Succeeding as a Young Financial Advisor 5

empower advisors to use them effectively will ultimately win the war for talent, but very few are

delivering the solutions that younger advisors demand.” In the interview, the CEO for Ritholtz

Wealth Management interviews a young advisor Josh Brown. Josh Brown describes how he is

about to take the “full-fledged” test to officially become a financial advisor. When asked what

challenges he faces, Josh describes how being a younger advisor in an older industry mostly

consisted of him trying to sell insurance and representing products he did not certainly believe in.

He also describes working with high-profile individuals who will be able to guide him to

success. He also says his clients are usually still in need of his services throughout their

retirement, most of the time financial advisors are used more through retirement. For him

however, the best path to success includes finding a path in a firm that he could believe in and

feel good working for. He said instead of selling pitches he was using mathematical models that

worked and provided success for his clients. Job outlook from the bureau of labor statistics

shows job growth at around 15 percent, which is much faster than average. Typical pay is around

88,890 a year which equates to 42 dollars an hour, making this one of the more lucrative jobs in

the financial industry. With 271,900 jobs in 2016 and a projection of over 50,000 additional jobs

within the next ten years, you can see why one would choose to get into such a fast growing

industry.

Conclusion

I think the future of this profession will benefit it a lot. With technology allowing

advisors and clients to communicate with their employees 24/7, I believe that will make
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communication much easier. Meeting with your clients constantly will no longer be a hassle.

Clients will be able to get a response from you within minutes if not hours. Often advisors in the

field will communicate over text, email, and phone calls. I believe a day in the life will involve

one waking up checking their social media and notifications. Then an advisor will setup

appointments to meet for the rest of the day. Once this work is over they will end the day by

making financial plans for all the clients that employ them. The next step for someone looking to

be successful in the field is to make sure they find the right firm to work for and take the right

steps to fully believe in what they are advising their clients.

Interview Questions:

- What I would have asked the interviewee if I ever had the opportunity to ask them about

writing and general experiences in their career.

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1. What percentage of advisors at Ritholtz Wealth Management are under the age of 30?

2. In comparison, what percentage of advisors at Ritholtz Wealth Management are over the age

of 30?

3. Yes or no, do you regret joining an industry where the majority of people you work with are

much, much older than you?

4. How can a college student set themselves up for success if they are looking to become a

financial advisor?

5. In your opinion, does being younger in the field provide you with a noticeable advantage

compared to your older fellow advisors?

6. Are you afraid about your job security and how does working for commission affect your

morale?

Works Cited
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Power, J. (2019, July 09). Technology, Social Media Critical to Bridging Financial Advisor Age

Gap, J.D. Power Finds. Retrieved from https://www.prnewswire.com/news-releases/

technology-social-media-critical-to-bridging-financial-advisor-age-gap-jd-power-

finds-300881313.html

Benjamin, J. (n.d.). Beware the gap coming in the number of financial advice professionals.

Retrieved from https://beware-the-gap-coming-in-the-number-of-financial-advice

professionals

Alex Palumbo, CFP®. (n.d.). Retrieved from https://ritholtzwealth.com/team/alex-palumbo/

“Being a Younger Financial Advisor.” YouTube, 18 June 2018, youtu.be/VEQ4D5PBkUc

Daniel, McDonald, L., B., J., Pal, R., Rose, J., TideAndEbb, . . . Shmoe, J. (2019, June 25). How

To Become A Certified Financial Planner: The Complete Walkthrough. Retrieved from

https://www.goodfinancialcents.com/how-to-become-a-certified-financial-planner/

Personal Financial Advisors : Occupational Outlook Handbook:. (n.d.). Retrieved from

https://www.bls.gov/ooh/business-and-financial/personal-financial-advisors.htm