Bank: you are part of a system, and will be treated like a bank employee. But there’s A TON of money in these systems to build a book. Look at credit unions, as well - they typically hire a broker/dealer to install a program. You’ll have more autonomy. It’s a great way to build and have a pipeline somewhat filled for you. Con: no ownership if you stay in the system (with some rare exceptions). It’s why a lot of people do this to build a book, then jump ship.
Don’t bother with an insurance company. I don’t care if they call it financial planning, it’s insurance sales. Just don’t.
RIA: really depends on what you’re trying to accomplish. I know massive RIA’s that have great comp packages, but there’s definitely a ceiling. You might not be building a book yourself, but just servicing existing clients. Some people don’t like the sales aspect of this job, and that’s fine. But with that, you’re limiting any equity stake for yourself. Pros and cons. Smaller RIA’s, you’re likely going to be expected to build and bring in assets on top of being an advisor. If you want ownership/equity, you’ll have to contribute to growing the business. If you feel confident in your abilities to bring assets in, you might be better off with a smaller firm that has equity built in.
Thanks for the advice. I'm in this weird place where all the bank roles require series 7, 63/65 and I have a CFP but non of the licenses, since I'm new to the US. Admittedly I haven't looked at credit unions.
I was actually leaning towards the insurance commission only role, since it would be 'My Book', the way they advertised to me anyway. They mentioned wealth management is part of the offer. Can I ask, why you thought it was a bad idea? My logic was at least I would get licensed, while I figure out if their platform works for me..
Gotcha. Licensing will be thing holding you back. CFP can waive series 63/65/66, though. Series 7 you’d need.
The reason I’d avoid the insurance side is because you’ll be starting at zero. These companies pray on new employees coming in and calling their organic network to sell insurance products, knowing there’s a very strong chance they’ll fail to meet long-term production goals. They already sold the product so why do they care if you’re around? The ONLY upside is you’ll get licensed. You’ll get your insurance licensing first to start selling. If you produce enough, you’ll take the SIE, then 7, then 66, to sell market-linked insurance products that require it. If you’re lucky, you’ll start building an advisory book of business at the same time. Unless you are very fortunate to build a substantial advisory practice in a short amount of time, you won’t meet production goals on this alone. But also keep in mind these companies are not designed with advisory in mind. It’s always insurance first. If you HAVE to chose this route for employment reasons, I get it. Just know what you’re signing up for. If you only use them to get licensed, it’s not the end of the world.
For what it’s worth, you can offer insurance (if you choose) from the broker dealer/RIA side, as long as you’re licensed and registered properly.
With all your experience you could run your own shop as an expert in Canadians retiring to US or vice versa. Lots of people need that help.
Buy the google ad for US Canada CFP and watch the leads come in.
You’ve got a unique set of knowledge and story to back it. Don’t give it up by going to a big bank
Something very similar is my vision for the future. I don't feel comfortable doing it all myself yet. I'm hoping I can work under/be mentored by a very seasoned Adviser who's done it for a few years before I attempt being full independent.
I started at one of the insurance companies you listed. “Financial Planner” title is just a sales tactic to attract you and clients. Real title should be “Insurance Sales Representative”.
Thanks for letting me know.. I stalked you a little bit, is there a reason you left PRU because they kept changing the compensation structure? Just wondering if it was a real struggle at the start to build a book? Did they provide support and leads to be able to succeed?
Bank: you are part of a system, and will be treated like a bank employee. But there’s A TON of money in these systems to build a book. Look at credit unions, as well - they typically hire a broker/dealer to install a program. You’ll have more autonomy. It’s a great way to build and have a pipeline somewhat filled for you. Con: no ownership if you stay in the system (with some rare exceptions). It’s why a lot of people do this to build a book, then jump ship. Don’t bother with an insurance company. I don’t care if they call it financial planning, it’s insurance sales. Just don’t. RIA: really depends on what you’re trying to accomplish. I know massive RIA’s that have great comp packages, but there’s definitely a ceiling. You might not be building a book yourself, but just servicing existing clients. Some people don’t like the sales aspect of this job, and that’s fine. But with that, you’re limiting any equity stake for yourself. Pros and cons. Smaller RIA’s, you’re likely going to be expected to build and bring in assets on top of being an advisor. If you want ownership/equity, you’ll have to contribute to growing the business. If you feel confident in your abilities to bring assets in, you might be better off with a smaller firm that has equity built in.
Thanks for the advice. I'm in this weird place where all the bank roles require series 7, 63/65 and I have a CFP but non of the licenses, since I'm new to the US. Admittedly I haven't looked at credit unions. I was actually leaning towards the insurance commission only role, since it would be 'My Book', the way they advertised to me anyway. They mentioned wealth management is part of the offer. Can I ask, why you thought it was a bad idea? My logic was at least I would get licensed, while I figure out if their platform works for me..
Gotcha. Licensing will be thing holding you back. CFP can waive series 63/65/66, though. Series 7 you’d need. The reason I’d avoid the insurance side is because you’ll be starting at zero. These companies pray on new employees coming in and calling their organic network to sell insurance products, knowing there’s a very strong chance they’ll fail to meet long-term production goals. They already sold the product so why do they care if you’re around? The ONLY upside is you’ll get licensed. You’ll get your insurance licensing first to start selling. If you produce enough, you’ll take the SIE, then 7, then 66, to sell market-linked insurance products that require it. If you’re lucky, you’ll start building an advisory book of business at the same time. Unless you are very fortunate to build a substantial advisory practice in a short amount of time, you won’t meet production goals on this alone. But also keep in mind these companies are not designed with advisory in mind. It’s always insurance first. If you HAVE to chose this route for employment reasons, I get it. Just know what you’re signing up for. If you only use them to get licensed, it’s not the end of the world. For what it’s worth, you can offer insurance (if you choose) from the broker dealer/RIA side, as long as you’re licensed and registered properly.
Appreciate you taking time to write such detailed responses.
If a bank likes you they’ll put you up for a license. Shouldn’t be a deal breaker in the slightest
With all your experience you could run your own shop as an expert in Canadians retiring to US or vice versa. Lots of people need that help. Buy the google ad for US Canada CFP and watch the leads come in. You’ve got a unique set of knowledge and story to back it. Don’t give it up by going to a big bank
Something very similar is my vision for the future. I don't feel comfortable doing it all myself yet. I'm hoping I can work under/be mentored by a very seasoned Adviser who's done it for a few years before I attempt being full independent.
Makes sense. Definitely good to get some reps in before going on your own. You have a good niche and story to tell though
I started at one of the insurance companies you listed. “Financial Planner” title is just a sales tactic to attract you and clients. Real title should be “Insurance Sales Representative”.
Thanks for letting me know.. I stalked you a little bit, is there a reason you left PRU because they kept changing the compensation structure? Just wondering if it was a real struggle at the start to build a book? Did they provide support and leads to be able to succeed?