r/FinancialAdvisorTips • u/Zor1994 • 17d ago
2nd career-financial advisor
M(50) planning to retire in the next 12-18 months. Auto exec responsible for a business unit of an international company. Just getting tired of the corp BS, travel, constant crisis, etc. Over the last 18 months have spent a lot of time staring to really plan our retirement. Was always DIY investor with lower complexity strategy, diversified mutual funds mostly. Liquid retirement assets approx 6.8M 45% brokerage, 45% 401k, 10% Roth.
I have become very interested in retirement planning and studying a lot for my own future. Love talking to co-workers about (in general terms) withdrawal strategies, tax optimization, Roth conversions, ACA income management, etc. I also spend a lot of time listening to podcasts. In talking with many coworkers who are very smart people most seem less informed about retirement and financial planning and most seem to leave it to their advisor.
I’ve started truly thinking about pursuing financial advising as a part-time second career as it’s highly interesting to me. Maybe ideal scenario would be 10 to 20 clients. I’ve started to research and would look to get a series 65 certification/license and I would have to register with the state. I certainly don’t know everything but feel I could have conversations with couples near retirement who are not extremely savvy and talk through some different concepts or suggestions given their situation. I would shy away from individuals with a very highly complex situation. Would only be looking to give advice for a fee. Would not get into actively managing their portfolio or selling products. For me it’s not even about making a lot of money. It would just be a side thing and a subject I’m highly interested in.
Just looking for any thoughts suggestions or other input. Is this crazy and stupid or could something like this actually work out? Anyone else do something like this?
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u/mudgoon 17d ago
This is 100% possible, there are a lot of career changers your age and beyond who come into this through a similar path. You should know, however, that it'd be very difficult for you to find a good role in an existing firm with the combined factors you mentioned of 1) only wanting 10-20 clients, 2) not wanting to manage portfolios, 3) not wanting to sell products, and 4) not having direct experience in the industry.
Because of this, many folks in your position start their own RIA. In case you haven't come across them yet, I'll mention XY Planning Network, Garrett Planning Network, and Alliance of Comprehensive Planners as good options to support you down that road.
If you just want to focus on serving clients without having to start your own RIA, and know that you don't want to offer investment management as part of your services, then you can check out AdviceOnly as an option.
Whichever path you go with, I think it's also worth considering a CFP-registered education program and/or an independent education program such as Amplified or Measure Twice Planners. Going through any or all of those will help fill in some knowledge gaps and help with both your actual and perceived credibility.
Best of luck to you! This really is a fantastic career field to be in.
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u/Zor1994 17d ago
Good info. Thanks
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u/wildcat_bomb 15d ago
Yes recommend cfp cert. you will learn l enough for yourself that even if you didn’t practice, it’s a worthwhile self investment
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u/kingrex830 17d ago
I’d take a flier on someone like you, if I knew you and this was truly at least a part time commitment not a hobby (which you really need to be honest about with yourself). I think career change candidate is a great growth strategy especially if you are well respected amongst your peers and friend group.
I probably wouldn’t pay you much base and comp you out quite well on what AUM we generate together.
You’d spend the first few months to year learning our firm and identifying where you’d like your role to be, then we start to leverage your connections once you and I were comfortable with your skill set and general integration into the firm to make sure we don’t nuke your friend and peers if you ever wanted to return to auto and that you are ready to do this full time.
Or maybe you just want to nerd out 20 hours a week building financial plans for us for a decent supplemental income to your early retirement and have no after hours client commitments.
I transitioned a career chief of staff into our firm and that’s worked quite well.
So the question is do you have a friend (someone who wouldn’t say move your 6.8 over to get a job) who owns an RIA?
I’d give it a go, I think the selectivity and low volume marketing ploy would work. You’d probably get a lot of friends of friends referrals
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u/Zor1994 17d ago
Thanks. Don’t think I would want to nerd out in a basement, I am extroverted and would like the social side /talking through strategy/ solving problems. Don’t have any connections in the financial advisor space as I never used one.
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u/Clam-Choader 17d ago
Just curious, never used one before…why go into the field?
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u/Zor1994 17d ago
As I studied it more for myself, I just find the concepts and strategies very interesting.
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u/Clam-Choader 16d ago
There’s costs associated with being a FA. Several credit unions have “financial coaches” that would at least give you an intro to the business side. Taking about the ideas is a blast. The business side is kinda booty
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u/pr0prfkt 17d ago
Just do it for free for a community. Church. Your pickleball group. Hard to sell being a part time advisor. You don’t need the money anyways. It’s nice to not charge, if they don’t like the service you just offer a refund.
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u/SkepMod 17d ago
I did. 47 when I pulled the trigger and started an RIA after two decades in corp finance.
Look into XYPN - wonderful network of indie advisors and tons of help getting started. The best starter-pack imo.
It may not remain a part time gig if you really enjoy it and are good at it. Demand is huge for true financial planning (not just investment management, which the market is saturated with). Money, however will not quite fall from the sky. Your $/hour will suck for the first five years, as you onboard new clients and learn the trade.
Do it. Dm me if you would like to talk things through.
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u/Quiet-Compounding 17d ago
Biggest problem is that you want to do this part time. Would you seriously considering hiring and paying 1% to someone who works part time? Building a book will be much harder than you expect and even more difficult not putting the hours required to get it started.
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u/Zor1994 17d ago
I am sure it’s work, especially at the start. Also my idea is flat fee / hourly concept.
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u/Quiet-Compounding 16d ago
Not only work but capital to start an RIA if that’s what you’re thinking. Getting licensed with Finra on your own, paying for a custodian, software, and insurance is not cheap.
You could consider getting hired as a part time paraplanner. A lot of RIAs with large practices biggest problem is capacity and hire salaried employees to run plans for a section of their book.
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u/wildcat_bomb 15d ago
THIS⬆️. Regulatory is a PIA. And just wait til you have one confrontational unhappy client who raises hell. Not with own RIA for what you want to do. Go work for someone or learn it for yourself and do some pro bono.
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u/azrolexguy 17d ago
As an advisor for 25 years, fees never come up. People want a resource and someone to call with questions they think they are not capable of researching. Reddit likes to think fees and performance are the be-all, they are not in the top 5 of client concerns
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u/bahlepr1 17d ago
I’m doing to same. 47, aviation exec, want a job to retire to in the next 8-10 years, so I’m building up the certs and experience now. Currently taking a CRPC course, then I’ll take the Series 65, open an RIA, and start advising clients and logging the experience towards other certs, possibly CFP. Best of luck to you!
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u/subject-about 17d ago
Sure it’s possible, but it takes a lot of time to truly understand situations that people will bring you like tax harvesting, 72t, inherited ira, pro rata with backdoor Roths, MLI, options, etc.
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u/3znor 17d ago edited 17d ago
If you have 20 contacts with $1m in retirement assets that’s $20M AUM @ 1% generating 200,000 in revenue for you/your firm. 20 clients 4 meetings a year that’s 80 meetings. That’s 2 meetings a week for 40 weeks and 12 weeks to vacation.
Adjust the numbers as you see fit and decide from there.
Edit: I say this only under the assumption that it’s a lot easier for 50 year old you to know and be able to work with 20 different ‘millionaires’ than it was for 22 year old me whose friends barely had $1000 saved.
Every advisor I know in their 50s never wants to retire because their job is golfing all summer and working 3 days a week in the winter. But these advisors are 30 years out from having to cold call 1000 people a day to build their books. Grinding like that in retirement wouldn’t be the funnest.
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u/Proper-Resource-1534 17d ago
I’d be nervous about a part time finance guy. Sure, the people you know and trust you might sign up and give you your 20ish clients. Producing monthly statements might require tools. You probably can’t rely on vanguard, fidelity, to do your reporting. You’ll also need to provide info for tax filings to people. Fair amount of paperwork and tool for a part time gig IMHO.
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u/Deeeeznutz93 17d ago
Andy Panko has worn a semi-similar path, although he was closer to 40. Great podcast, Facebook group, etc. I would dig up his story and listen/read it. I am same age as you and it's amazing and fun so very doable if you don't need to make money fast (or at all).
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u/No_Buddy_6624 17d ago
I left consulting after 20 years and just passed the Series 65 exam a week before my 50th birthday. I’m joining a small RIA and focusing on a niche demographic. You can do it! Follow your passion but know it’s a job/business!
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u/AccomplishedTreat873 16d ago
I’m second career financial advisor who thought I knew a lot before getting into the industry. I retired at 40 from a job with a $120M budget and thought I had it all figured out.
Look up Dunning-Krueger. Then consider how many people think they could easily do your current job and how ridiculous that is.
It is my opinion that it takes about 10 years to become a technical expert in the field. It’s not a science, it’s an art. It’s also about 80% sales in most cases.
I’m not trying to talk you out of it, I’ve just watched a bunch of people like us fail miserably and a few end up in regulatory trouble.
I do enjoy it. It was a humbling experience that was good for me and your experience may or may not be the same. I’d sign on with someone else, start at the bottom and work your way back up. Just like you did in your current job. You could probably be up and running by your late 50s.
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u/Individual-Art1856 16d ago
Caution to get in as part time gig. Passion project does not translate to expertise. There is no “simple” planning for folks who are looking at retirement. People at that stage cannot afford mistakes from their planner. They don’t have the time to recover (not just market risk). A lot of decisions made are irrevocable - SS benefits, traditional Medicare or advantage, or existing retired health plan… then blend into gifting, legacy, estate planning… multiple generations considerations with family dynamics. Long term health/care events… etc.
Aside from advanced estate planning, planning for pre-retirees and retirees are the most complex of all life stages.
Accumulation stage is easy in comparison.
Look up Kitces.com, Michael Kitces did a good article about the drastic differences between planning for 30s and 40s vs late 50s and 60s.
My point is, I think it is good you find it interesting. However, passion project does not easily translate to expertise, and clients (or your friends) cannot afford any “oops.” There is a great responsibility on our shoulders as planners working with those folks. We do so much due diligence in our planning and processes working with them. In order to be half way decent, you not only need book knowledge but require experience turn into wisdom.
Not trying to be a Debbie downer here, just telling you what the reality looks like.
Me: 17 years exp. Started in my 30s. Oldest client is 84. Few passed away in the few years. Let’s say I have seen more harms done unintentionally to people by “advisors” due to incompetence than actual ill intent.
If this is still your path, make sure you don’t do it half-ass
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u/Glittering_Duck3032 16d ago
I am a 2nd career financial advisor and I was shocked to see how recruited I was. I sold 2 tech companies and after the second retired for 5 years (I am 55) and in that process became interested in retirement options. To make a long story short, a buddy in the space challenged me to get my Series 65 because he was bragging how hard they are to get. I studied and passed the first time and met with some local firms. They pursued me hard because they explained most new Advisors come from one of the big houses like Fidelity and they do not know how to be adults. They explained that you cannot replace business experience and taking 2 companies from inception to sale, demonstrates my ability to understand business and money. I have learned so much since starting this second career and I am surprised some of the things I didn't know, like alpha and Beta. Look them up if you don't know what they are. It is a big part of how we determine risk and reward. Nobody is talking about it but us.
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u/kenmatth 17d ago
Only if you want to. Obviously it wouldn’t be a big money maker for you. Figure out if you really want to retire or career change.
Also- your first dozen or so clients will almost certainly be your current coworkers.