What's Trending For New Financial Planners

What’s Trending for New Financial Planners (October 2023)

“What’s Trending for New Financial Planners” is a collection of articles, podcasts, videos, etc. that I’ve been consuming regarding breaking into financial planning, industry trends, career development, and more.

New Planner Recruiting shares salary data from their latest new financial planner compensation survey [Podcast]:

“The average expected salary for a Paraplanner, and by Paraplanner we mean someone with 0-2 years of experience, a new entrant into the profession, probably completed the CFP coursework or is in progress to do that. We saw low $60’s. $63,241 is the number we came out with.

For an Associate Planner, this is someone in that 2 to 5 years of experience, probably passed the CFP at this point, second chair position, probably in meetings, taking notes, handling a big swath of data entry, building financial plans, prepping meetings, follow-up, probably some client interaction, the average we saw there was $83,936. So, just a hair under $84,000.

For a Financial Planner, that being someone with 5+ years of experience, this person’s going to be expected to maintain relationships, the ball is in their court on a daily basis in the office, that number is still over $100,000. The number we saw was $105,348.”

Compensation Data Points With Caleb Brown And Jesse Lineberry [Caleb Brown & Jesse Lineberry, New Planner Podcast]

If you are in a succession plan that doesn’t seem to be progressing as expected, two pieces of content with tactics on how to navigate your situation:

“It sounds like the succession planning is pretty much one-way here. You are being told the price to earn the right to work for the clients. But your note seems to imply you were never told when you agreed to join the firm that this was the price! You might have a cultural mismatch that needs to be addressed before you think about how you all go out and grow your own books of business. I will give you some ideas on that. But consider whether it is the best situation for all of you.”

As A Next Gen, Why Do I Need To Prove Myself? [Beverly Flaxington, WealthManagement.com]

What Can Next-Gen Advisors Do When Founders Have Doubts About Retiring? [Michael Kitces & Carl Richards, Kitces & Carl Podcast]

The tradeoffs of four approaches for addressing concentration risk [Podcast]:

“Exchange funds offer a mechanism to diversify positions without triggering immediate capital gains taxes—I sometimes compare them to a potluck of stocks. Various investors can contribute their concentrated stock positions into a pooled fund that seeks to track a broad market index, such as the Russell 3000. Investors contribute their appreciated shares of a single stock to the exchange fund, and in return, they receive a pro-rata share of the fund, which comprises of the diversified portfolio of various stocks contributed by all participants.”

4 Ways To Diversify Concentrated Stock Positions [Peter Lazaroff, The Long Term Investor]

Several tips for career changers to make a smoother transition into the industry [Video]:

5 Things For Career Changers To Be Doing Now [Caleb Brown, New Planner Recruiting]

Hannah Moore with an update on The Externship program including who the program is best for, the skills and knowledge you can expect to learn, the weekly hourly commitment, and more [Podcast]:

“We had somebody come into the externship this year and she was like: ‘I had to do this because I went to a conference and two separate owners of firms told me that they only hire people if they’ve done the externship.’

What we’re hearing, especially from people who are getting jobs after going through the externship, is you get the eMoney certificate, but we’re also giving all of this other training, so they’re able to hit the ground running in a way that other candidates can’t.”

Gaining Experience And Going The Distance With Hannah Moore [Jerry Mee & Adam Scherer, BIF Bites]

A reminder of the immense impact you make as a financial planner [Article]:

“People outside our industry think of advisors as stock pickers or investment gurus. While I suppose there are those who fancy themselves as such, what we do is so much more than that.

The fact is that savvy, forward-thinking, financial planning will have a much more profound influence on a person’s life than merely growing their bank account. The difference between good, bad or no advice can determine whether a person will have a future in which they can comfortably visit their grandchildren, contribute a down payment for a child’s first home or pay for a grandchild’s private school.”

The Role Advisors Play In Their Clients’ Lives [Scott Hanson, InvestmentNews]

Morgan Housel with pithy wisdom on money, happiness, and more [Article]:

“You don’t have to know exactly what the future holds to know that some people will handle it better than others.

Money can bring happiness but it also brings complexity, and complexity can quickly lead to unhappiness.

It’s easy to mistake getting attention for being right or being admired, especially on social media.

The most valuable personal finance asset is not needing to impress anyone.”

A Few Things I’m Pretty Sure About [Morgan Housel, Collaborative Fund]

Which was your favorite takeaway? Comment below!

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