Hi, I’m currently a finance major at UA Huntsville. I’ve been thinking of applying for an internship at Edward Jones or Merrill Lynch next summer. I read a ton of positive articles about how great being an FA is ( EJ is around number 5 on Forbes best places to work for I believe). On the other hand, I see many people warn of high turnover rates and stress related to the industry in general. I’m just looking for your opinions on this line of work- is this a good position out of college or should I go for a different path?
My only experience is coaching for my local parks and rec at the moment…
It’s a sales job that requires attention to detail. If you like sales and are good at it, and attend to the details, you’ll probably like it. If you don’t like or aren’t good at sales, you probably won’t like it.
In my area, Edward Jones is who you send people with a little money and no financial savvy to; they’re unlikely to be turned away as too small of clients, and they’re unlikely to be sold something utterly unsuitable. I suspect investment advisors at the bigger firms make more money, though.
Been in the business for 29 years. I run a firm and still advise my personal client base (which is probably the most enjoyable thing I do). A few bullets:
If you like helping people solve real problems, being an FA is a great career. You have the opportunity to transform their financial fear and confusion into confidence and clarity (that's really what you do by understanding their needs and solving their issues)
It is a combination sales job, relationship management, and analyst
Turnover is very high in early years. At the end of the day, it's about getting clients. If you can't do that, you won't survive. Ultimately that comes from within. Have worked with hundreds (literally) advisors. They can always learn about tax planning, products, etc. But from a client acquisition perspective, they either have it or they don't (the ability to attract clients).
I’m independent. Have always been. I imagine it’s a bit easier starting off with a firm as a trainee of some sort. EJ is probably fine for that. Also consider learning the ropes as a junior advisor for an established practice. Lots of mid career guys are looking for a junior to delegate some ops and hand off smaller clients. Good way to learn business. Also sets you up to play a larger tole in the practice, succession, etc.
It’s a really hard career to succeed in if your start right out of college. The people who have money to invest are your parents or grandparents age. It’s hard to trust someone who looks young and inexperienced with $100,000 plus accounts, which is what you need to survive.
If you start as part of an established team it is probably easier, but it’s tough to be the main guy until you get a receding hairline or a few grey hairs. My kids have asked about joining me, and my advice has always been so something else until you are 30, and be successful. Then we can talk.
The important part of what you do isn’t sales, but you won’t succeed at the investing and advising unless you are good at sales. The first few years it is primarily a sales job.
I think probably 80% of the trainees I started with were gone in 2 years. About half of the remaining quit before 5 years. If you survive that long, it’s probably a lifelong career.
It is very overregulated and you spend a large amount of time doing meaningless paperwork that doesn’t really protect anyone. Very different than even 5 years so.
Having said all that, I can’t imagine doing anything else.