I'm in my mid-40s and going through a career change. I'm most likely financially free as long as I keep my expense to the very bare minimum.
I am going to be studying for a Graduate Diploma in Financial Planning next year and hoping to graduate by the end of the year.
Are any financial planners out there or anyone with experience with a financial planner able to give me some insight?
Let me know why I should not (or should) be a financial planner in the next 2-3 years and onwards.
Personal interest and enjoyment of money management (budgeting, investing, wealth creation, planning etc.)
I've done somewhat okay for myself so I wanted to help others with their financial needs and education.
I'm okay to help both sides, people struggling and people who have too much.
Pretty much to be the next Barefoot. All the best.
Have a look @ https://www.kaplanprofessional.edu.au/courses/financial-plan…
Also, become a Student Member of FINSIA
https://www.finsia.com/membership/student
I did this years as a side thing just because the company offered to pay for it. It was piss easy. Each subject, I opened the course materials twice. Once to do the assignment and then I took the folder to the exam.
They seem to design the course so that most poeple pass and keep going on to do the next subject/course (more money for them). I'm not sure if that qualification really says anything. .
I was looking at doing the course at Victoria University instead of Kaplan.
Their course and structure seem to suit me better.
Did you end up becoming a Certified Financial Planner afterwards?
Any tips on finding a company to pay for the course? I wouldn't mind someone else paying for it.
Most larger financial institutions will pay for these types of courses. At the time, I had no intention of becoming a financial planner, but I looked at it and it was a piss easy qualification to get, so I used it as a backup career. The course wasn't much effort and it didn't cost me anything, so I thought… why not?
I did work with a lot of financial planners though and the way they talk and act really reminds me of a typical salesperson. A lot complained about their earnings dropping with the introduction of the newer regulations around the disclosure of their commissions and the SOAs.
I'm not sure what the differences are with the courses are between VU and Kaplan, but if you can get that same certification quicker and easier, why not take that option? It's not like a law degree where some institutions are seen as more prestigious. In financial planning, people don't generally care how you got there - it's fine as along as you've got that certificate.
I am doing M.Bus accounting at VU. Can the financial planning diploma lead into accounting degree? Tax planning is a quasi financial planning activity, especially for people of your (and my) age.
Never heard of FINSIA. Thanks! I'll have a look at it.
Usually, I hear of FPA.com.au.
The issue with financial planning is that the people who really need help can’t afford to pay much; and (apart from a very few) the people who have money don’t need planning assistance beyond maybe a bit of tax structuring (after all, how hard is it to say ‘invest in diversified ETFs). However I think helping the former would be quite rewarding even if often frustrating - but not particularly lucrative.
Superannuation is the one area where there is a clear need for expertise, it’s just too complex for most people
Beware of ending up as a salesperson pretending to be a planner
Thanks for the info, I'll consider look at superannuation as a particular area of interest.
Step 1: get a high paying job
Me: dang.
Have you got your own yacht yet ? :P
Sadly the seasickness prevented me from buying a mega yacht.
There's a lot of information on the internet these days that people can do research themselves. The major banks seem to have sold off their "wealth" arms because they're looking at it as a liability.
I'm not saying that there's going to be no jobs, but the market is probably going to keep shrinking (especially when compared to before). The introduction of the SOA's have increased the overhead costs significantly too. Add that to the ever-increasing damage to their reputations (due to exposure of bad practices from the past) and changes to the way commissions are disclosed/received and it's obvious that things have just gone downhill. They had a semi-decent reputation years and years ago. Now it's just shit. I wouldn't put them on par with real estate agents and car salespeople yet, but it's getting there!
All in all, it's literally a sales job with commissions being your income, so you can see why some people might be skeptical of the advice they receive.
I have actually never used a financial planner myself and have done everything through my own research. But, I do find that there definitely are areas where they could be useful and above my own knowledge but usually it would involve those things on the high end.
I do find that there definitely are areas where they could be useful and above my own knowledge but usually it would involve those on the high end.
Financial planners seem to get a big chunk of their earnings from the superannuation industry, especially around the insurance premiums. All the bad press about trailing commissions etc have caused havoc and all I can see is their ability to charge certain commissions will become even more difficult because the regulators will keep adding in new rules for the industry.
If I was ever going to be a financial planner, I think it'll be good to do it in conjunction with services such as mortgage broking so that it's all in a single package (rather than by itself).
I considered financial planning but found out early on is it's just another sales job, eg. life insurance policies, SMSF plans or managed investment funds.
There's very little in the way of budgeting and planning, maybe a little bit close to retirement age to take advantage of pension loopholes. People with money won't want to pay you money to be told to spend less money, they'll go to an accountant for actual tax structuring. People without money will be going to "MyBudget" or similar to get them out of a hole.
Melissa Caddick ……. and she was only pretending to be a FP
She put her foot in it.
unfortunately
I'm most likely financially free
If this is true, why not follow your dreams lol
Many people don't do what they want to do because of financial restraints but if that's not you, then you can afford to take the 'risk'.
There will be people that say 'don't do it' and others that say 'do it' - if financial planning is something you are passionate about, then you will find a way to make it work.
Worst case is you don't enjoy it, which will inevitably get you closer to finding something you do.
Wise words. Something that I will definitely be reading a few times over.
I believe since the banking Royal Commission, there has been a lot of scrutiny in the financial planning space. Im not saying it is a bad time to enter. Just that stories about financial planners/wealth managers making heaps of dough is probably non-existant now. It is still essentially a sales role with a lot of time spend networking rather than analysing the market. If you are good in socialising, then perhaps it could be a role suited for you.
I completed that Grad Dip a few years ago. I needed the info for personal and family reasons and I thought I might change careers into fin planning. I completed the course through FINSIA as, at that time, it offered both on site and distance education options.
It turned out that I didn’t change careers into financial planning as other opportunities arose that I took, and now I have retired.
The course was interesting and very worthwhile for me.
A lot of people have opinions about financial planning but most have no real clue. While I do think that the legislation governing financial planning needs changing, the profession and the services offered are essential.
The is a shortage of planners in Australia but a large untapped need. If you think you’d like to do it, then it is definitely a worthwhile profession and you can make some decent money.
Thanks for your insight.
I'm glad that the info during the course was at least worth it. Even though I plan to do this for a career change, if it does not end up that way, at least I know that I would learn something useful for the rest of my life.
Well, if you're in your 40s, get a move on, because starting as a financial planner in your late 40s is damn near impossible without experience. Even with advanced diploma and a commerce degree. All the interest and motivation in the world counts for nought against blatant agism.
Oh no, that's not good. I am willing to start from the bottom and work my way up. For me, that's not a problem but getting my foot in the door? Perhaps it might be difficult like you say.
It’s a bit of a used car salesman job. You are flogging products that are often lemons. Honestly I’d not touch with a ten foot pool. The whole industry has misaligned incentives.
Since the educational requirements changed the number of qualified financial planners in Australia has plummeted, although there's talk now of allowing "industry experience" to replace the required degree. All the same there are many fewer planners than there were. Personally I think if you find it interesting then you should go for it - whether you end up using it for employment or not, you'll have learned something. Maybe once you are qualified you could look at specialising in something - estate planning, SMSF setup (this is a growing area) or just plain retirement planning, and really focus on your niche. There's talk now of allowing FPs to provide limited targeted advice, so if someone comes to you looking for SMSF advice you can give that without having to do the whole SOA. Cost of advice will be more affordable and more accessible for people.
And as planners can no longer receive commissions for new products (2019) or for grandfathered sales (2012?) it takes away the perceived "negatives" that others have offered.
Why you want/pick that path?