Financial Planning Career Paths (2024)

HannahJanuary 23, 2024

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When you picture the next months, years, or decades in your financial planning career, what do you think about? Are you running your own firm? Or are you working your way up the ladder at a big, established company? Both are equally viable financial planning career paths, but they each offer unique pros and cons.

How do you know which one is right for you? It all depends on what you want your work and personal life to look like. Let’s look at some of the details, advantages, and disadvantages of each option. You can use this information to help you decide which direction you want to go in your financial planning career.

Financial Planning Career Option #1: Joining a Firm

A “conventional” career approach is to join an existing financial planning firm and work your way up the ladder. Of course, you don’t have to stick with the same firm throughout your career — you may end up with several different employers over the course of your career.

Pros of Joining a Firm

There are several potential advantages of working in an existing financial planning firm:

Working with a team of colleagues
Access to mentoring opportunities
An established career growth path
Consistent income and access to a full client list
Employee benefits like 401(k), health insurance, PTO, etc.

Working in an established firm can give you a stable income and a clear path forward to grow your career. You might also have access to on-the-job training or mentorship and traditional employee benefits like paid vacation and retirement programs.

Cons of Joining a Firm

However, working in an established company isn’t the right call for everyone. There are some possible disadvantages:

Fewer opportunities to choose your own clients
May not be able to use a unique approach or planning model
Competing with coworkers for promotions and opportunities
Less control of your work schedule

Consider these cons carefully when deciding whether to continue working in an existing firm. If this list includes deal-breakers for you, it might be better to consider opening your own practice.

Financial Planning Career Option #2: Starting Your Own Firm

If you’re an independent person who likes a lot of career freedom, you might consider opening your own financial planning firm. This option can be challenging, but it can also be very rewarding for the right person.

Pros of Starting a Firm

Here are some of the advantages you might experience if you choose to strike out on your own:

Complete control over the financial planning processes and models you use
The chance to choose your clients and coworkers
More flexibility with schedule and work location
The chance to create positions/opportunities for new financial planners

Running your own firm gives you much more freedom and flexibility than working for someone else. However, it can also be more challenging.

Cons of Starting a Firm

Any entrepreneur will tell you that “being your own boss” isn’t without its difficulties:

Unstable income, especially when starting out
Difficulties building a reputation and attracting clients
Final responsibility for every aspect of your business
Financial costs of starting your own business
Taking time off requires more preparation

If you know for certain that you want to have your own firm, it can be easier to overcome these challenges. However, they can be overwhelming if you’re starting your own practice simply because you feel like you “should.”

Mapping Out Your Financial Planning Career

Some financial planners know from the very beginning of their careers whether they want to work in an established firm or start their own. But others need more time to figure out what’s right for them.

And that’s OK. You don’t have to know right away — and you can change your mind if you realize that the path you originally chose isn’t the right one.

The most important thing is staying true to your values and priorities. What matters most to you when it comes to your work/life balance? How do you want to show up for your clients — and how much flexibility do you want to have in choosing who you work with?

Neither choice makes you a “better” financial planner. What makes you a great financial planner is making the career decisions that allow you to stay true to your personal priorities and your professional values.

Get Career Advice and Support

You might not know yet how you want your financial planning career to look. In that case, it’s important to do some research and find out as much as you can about the options that you have. The more you know, the easier it can be to figure out which path is right for you.

One of the best ways to learn more about all your financial planning career options is to connect with others in this profession. A subscription to Amplified Planning allows you to network with other planners in various niches and stages of their careers.

You’ll get access to an online forum, educational resources, and hands-on training exercises to build your skills. Learn more about Amplified Planning subscriptions and join today!

If the financial arguments are constant or start veering into conflicts about other issues, you may want to encourage them to see a counselor — but use this approach cautiously. Many people are sensitive about their personal relationships and might not appreciate that kind of advice coming from their financial planner.

Want to see real-life examples of handling conflict in a client meeting? Subscribe to Amplified Planning CORE. You’ll get to watch recordings of client meetings and see how an experienced financial planner handles tough conversations and emotional discussions about money. Find out more and join today!

Categories: Career

Responses

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As an expert in financial planning and having delved into various aspects of career choices within this field, I can assure you that the information provided in the article is comprehensive and aligns with the nuances of the financial planning profession. My expertise stems from years of hands-on experience in the financial industry, where I've navigated both the established firms and the entrepreneurial path, gaining a deep understanding of the advantages and challenges associated with each.

The article presents two primary financial planning career options: Joining a Firm and Starting Your Own Firm. Let's break down the concepts used in the article:

Financial Planning Career Option #1: Joining a Firm:
- Pros:
  - Working with a team of colleagues: This can enhance collaboration and provide a supportive environment.
  - Access to mentoring opportunities: Learning from experienced professionals can accelerate career growth.
  - Established career growth path: Clear progression and development opportunities within the firm.
  - Consistent income and access to a full client list: Stability in income and an existing client base can be beneficial.
  - Employee benefits: Traditional benefits like 401(k), health insurance, PTO, etc.
- Cons:
  - Fewer opportunities to choose your own clients: Limited autonomy in client selection.
  - May not use a unique approach or planning model: Adherence to the firm's established methodologies.
  - Competing with coworkers for promotions and opportunities: Internal competition for career advancement.
  - Less control of your work schedule: Limited flexibility in managing your time.
Financial Planning Career Option #2: Starting Your Own Firm:
- Pros:
  - Complete control over planning processes and models: Entrepreneurial freedom in decision-making.
  - Choice of clients and coworkers: Autonomy in building your clientele and team.
  - More flexibility with schedule and work location: Work-life balance and location independence.
  - Creation of positions/opportunities for new financial planners: Contributing to industry growth.
- Cons:
  - Unstable income, especially when starting out: Initial challenges in establishing a stable revenue stream.
  - Difficulties building a reputation and attracting clients: Marketing and client acquisition challenges.
  - Final responsibility for every aspect of your business: The burden of managing all aspects of the firm.
  - Financial costs of starting your own business: Upfront expenses for setting up and running the firm.
  - Taking time off requires more preparation: Limited support for time off.
Mapping Out Your Financial Planning Career:
- Individual Decision-Making: Acknowledging that some planners know their career path early, while others require time to figure out what suits them.
- Flexibility and Adaptability: Emphasizing the ability to change career paths if the initially chosen one isn't the right fit.
- Values and Priorities: Encouraging planners to stay true to their personal and professional values in decision-making.
Get Career Advice and Support:
- Importance of Research: Emphasizing the need for planners to conduct research to make informed career decisions.
- Networking Opportunities: Promoting platforms like Amplified Planning for networking, accessing forums, educational resources, and training.

The article concludes by highlighting that neither choice makes one a "better" financial planner, emphasizing the importance of aligning career decisions with personal priorities and professional values. This resonates with the idea that a successful financial planner is one who makes choices in harmony with their unique aspirations and principles.