Getting Started as an Investment Advisor / Financial Planner
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Click here to see my Bio! Thanks For Visting My Student Page
 Instructor: Terry Nelson, CFP MS      (Biography)

This web page and its related links had been dedicated to helping students from previous classes as much as possible.    However, because of time constraints, I am no longer teaching for any institution but The College of Financial Planning.     

If you are one of my students or anticipate being a student, you can feel free to contact me at my office any time.    The only time I will be unavailable to speak with you is when I am working with or on client accounts. 

You can call my office at: (651) 638-9428 or 
E-mail me at: terry@hometownfp.com     

 

How Do I Get Started In The Financial Planning Industry?

One of the most common questions that students who are new to Financial Planning often ask is, how they can get started in the industry?    Many students are looking for a new career, and while they have a strong desire to do Financial Planning, many do not know how to get started.

  1. First, and most important, you need to decide how you want to receive your compensation through Commissions or Fees.

Advantages of the Traditional Commission based Broker-Dealer Track:

  • You should receive a great deal of training in Product Sales.
  • If you are not self motivated, you should also have a manager pushing you.
  • Most large firms have computer software that you use, rather than having to purchase your own.

Advantages of the Growing Fee Based Investment Advisor Track:

  • You can tailor your firms policies to fit the way you want to work with clients.
  • Since you do not have traditional production requirements, you can typically spend more time with each client.    
  • You do not have to split 50% or more of your fee's with a managing firm.
  • By joining the FPA, you can get much of the product training traditionally offered through Broker Dealers.

Another option for the Fee Based Investment Advisor Track is to find a local fee based firm that would be willing to hire you in some capacity.    You would need to find fee based firms in your local area.   One way to do this is to contact the Financial Planning Association (FPA) chapter in your local area.    You will want to become a member of the FPA in any Event.

 

  1. Next, you get take tests and get your applicable Certifications and Registrations.

If you choose the Traditional Commission based Broker-Dealer Track, your BD will walk you through the process of getting the studying materials and taking the following tests:

  • Your Series 7 (to sell Stocks, Bonds, ect.) or Series 6 (to sell Mutual Funds and Variable Products, ect.) ,
  • Your required state Series 63
  • A Series 65 (Investment Advisor Test, if applicable), and your
  • State Life Insurance License test.

If you choose the Fee Based Investment Advisor Track, you will have to work through the process of getting the studying materials and taking the following tests:

  • Your Series  65 (Investment Advisor Test), and 
  • Register with your State and the NASD as an Investment Advisor.  For this you will need to order the studying materials and fill out the NASD Form U10.

You can get learning materials for the Series 65 exam. , from Dearborn Financial Services.    In addition to materials, they also provide a pre class before the test.   

Their phone number is: 1(800) 824-8742
Their web site is: http://www.dearborn.com

Here is a link to the NASD Form U10 (as of 3-05).
NASD Manual Online

 

  1. Next is Software.   Once you start working with clients, you will need software to do all of the financial planning calculations required.    While there are a variety of types of software that do a variety of tasks from research to number crunching, the most important (and the only one you should purchase when starting out) is the best financial planning software package you can find.   You can spend a lot of money on software that you will soon regret when you find out how little you use it when you are just starting.      

A good financial planning software will on the other hand will make your job and your life much easier!!!!

There are many software companies providing this type of product.    I have used most of the products out there over the years, and found the one I am currently using is BY FAR THE BEST!

You can get a list of software venders from the Financial Planning Association (FPA)

 

  1. Then, you apply for Errors and Omissions Insurance.   If you work through a Broker Dealer, you can purchases theirs.    If you go the self-employed Fee Based route, you will need to get your own.     

There are many firms and you can choose your own.     However, for more information and a quote, you can contact a company that I am aware of: 

The Cambridge Alliance
PO Box 64998
Burlington, VT 05406

1(800) 691-1515
Speak with: "Tony" Bougere

They can help you with and answer your questions on many issues from E&O Insurance to Compliance.

You will need both a Client Services Agreement and a State Disclosure Statement.   Here are mine in MS Word format.     You can download and edit them to fit how you want to run your practice:

 

  1. Last, you need to be able to help clients implement the plans and advice you offer them.   

If you choose the Traditional Commission based Broker-Dealer Track, you will be told by your BD what products you can sell.     

If you choose the Fee Based Investment Advisor Track, you can use any Discount Brokerage Firm you are comfortable with.    You should try to find one that allows you to sign up as an Investment Advisor.   This way you can initiate your clients trades at your own office, also you will be able to become familiar with the procedures of just one firm rather than many.

A good firm will have all of the products and services you need to serve your clients from various types of investments to no-load insurance products.   You can choose the one that best fits your needs.

If you have any questions, you can call me at my office.

(651) 638-9428

 

Here is another Great Learning / Time Saving  Tool:   Text to Speech Software

I currently use Text to Speech software to: 

  • Read Articles On Line, any trade magazine you may be receiving, also has each issue on line.    You can use that format with Text To Speech software. 
  • You will be required to do research on line, it is helpful to have some of these web pages read to you rather than reading through them.

It is very handy to be able to listen to articles and reports.  It allows me to do other work at the same keeping up on my reading.

I have looked at several software packages and have found the Read Please software to be the most functional.    It allows me to:

  • Listen to web pages,
  • Any text document, 
  • As well as save the reading as an MP3, Wav or other audio formats.   This way I can listen to them in the car or any where.

You will want to get at least one 16 bit voice, as it is much more appealing to listen to.   They sound the most realistic.