Have a financial planning career related question? FPSC's Student Associates have the opportunity to e-mail questions to practing CFP professionals.
Below are samples of career questions and answers that our CFP volunteers have answered. Check back monthly for different samples.
Career Q & As:
Q: I am a recent university graduate that has passed the LLQP (Provincial Exam) as of March 28, 2007.
After working as an Insurance agent for a few month, combined with the fact that I found out about the CFP designation, I feel that I am VERY interested in working in a SALARIED position one day as a CFP.
I just have a few questions:
1) Are there a lot of jobs available for CFP's? (salaried positions)
2) Where do CFP's typically work in salaried positions?....and are there government positions available?
3) My current situation: Although I have my Life Liscense and hope to have my Mutual Fund liscense within the next few months, what kind of jobs can I get with those TWO liscenses? With those two liscenses, would I be able to get a decent salary?
4) What would be the BEST way to go about getting a salaried job with my current credentials? (i.e. university degree, Life Liscense). Do banks look favorably at people who have life liscenses?
I sincerely thank-you for any help that you may provide me.
A: There are many salaried jobs available for experienced people who hold a CFP designation. Your experience as a an insurance agent combined with you academic background should serve you well when the time comes for you to approach perspective employers.
Generally speaking, the banks and credit unions will typically have more salaried positions available than equivalent entry level jobs with a life insurance company. The banks and credit unions are attempting to rapidly expand their sales forces of financial planners to keep up with increased consumer demand for this type of service and advice. If you look on the major web based recruiting public websites, I suspect that you will find many jobs for financial planners offered with the banks.
You should note that banks generally do not sell insurance products (other than certain creditor insurance products for the loans that they provide their clients with and some travel insurance policies). On the other hand, financial planners working for banks and credit unions are very involved in the sale of mutual funds and other investment products. If insurance is of great interest to you, you may be better suited for a salaried job at an insurance company. The majority of these entry level positions would typically be found in a customer service call centre.
I am not aware of many government jobs for CFPs, except perhaps for some financial planner positions working with certain government affiliated credit unions. There may also be a few positions requiring a CFP at certain provincial agencies where personal financial planning knowledge is required such as the office of the public guardian and trustee.
Regardless of your choice of career path, a CFP will certainly help you towards finding a good job and enhance your bargaining value with potential employers.
I hope this helps a bit. Thanks for your question.
- Answer provided by Grant Henri, CFP, RBC Dominion Securities. (July 2007)
Q: I am 48 years old and I am planning to take a 3 year CO-OP course in Financial Services this fall.
I was a full time worker for 20 years before I started my family. I worked at Toronto Dominiom Bank and C.I.B.C. for the total of 5 years (Current Account Department). I also worked in sales area like an assistance for a Real Estate Agent and New Car Sales Representative. I enjoy working with different client daily.
My question is: Am I TOO OLD to join in the Personal Finance Team? My goal is to get the CFP Exam and work ONLY in the Bank environment for a fixed amount of hours weekly for 10 more years. Do they pay by commission or not? What is the rough income will I be expecting as a new CFP get in general?
A: My mother started in this business in her mid-40s, so your age is certainly nothing to be worried about. I know many people who start working in this business in their mid-50s!
To hold the CFP designation you will require 2 years of work experience within the industry, which can certainly be obtained in the planning department in a bank environment.
Rather than a three year CO-OP course, you might want to write the Canadian Securities Course and then try to get right into the industry. You can also start the educational requirements of the CFP, which would be attractive to a potential bank. I do not work for one of the banks, so my understanding of their pay is limited, but I believe there is a small salary and a bonus component based on production.
If you are open to working outside of the bank world you could essential start working tomorrow, with the companies paying you on a commission basis but they will pick up the upfront licensing and training costs. Freedom 55 Financial for example.
- Answer provided by Peter Andreana, CFP, Freedom 55 Financial. (June 2007)
Q: I am currently undergoing a career change and have given serious consideration to a career as a financial planner.
I do not have previous work experience in the finance industry but have worked as a senior manager overseeing program operations for a service based industry with an annual budget of approx 3 million dollars and have owned and operated my own small business. I have looked into taking the Certified Financial Planner Course and the Canadian Securities Course. My question is, with these two courses and little or no previous work experience in the financial field, how difficult will it be break in to the profession. Is lack of experience a huge stumbling block to getting that first job. Should also mention that I am also 41 years old, so I do have other experience that I can offer to an employer.
A: The fact that you have owned and operated a small business is valuable experience that would be looked upon favorably by potential employers in the financial planning field. Any past experience that demonstrates an ability to work in an entrepreneurial environment will help you in this regard.
There are many firms that are willing to consider hiring a financial planner with limited experience provided that they have skills that will be relevant to the profession. Business development, sales skills, managing client relationships and simply having a mature attitude are all examples of skills that are highly sought after by employers in the financial planning field, regardless of the industry in which these skills were acquired.
Many clients who have accumulated substantial wealth seem to prefer working with a financial planner who is of your age, or older. Because of this, I feel that entering the profession at your age is in no way an obstacle, and may even be beneficial.
If you intend on working as a financial planner dealing directly with clients, you will likely need to complete certain additional academic courses in order to be hired (in addition to a financial planning designation such as the CFP). Most employers will typically require you to be licensed to sell mutual funds or securities, insurance, or some combination of these products. If you haven't yet looked into this, I would suggest that you review the expectations that potential employers will have around licensing to be sure that you are prepared when the time comes to approach them.
Finally, you should be encouraged that the financial planning field is expanding rapidly and in the last few years, there seems to be more jobs available for financial planners than there are experienced planners to fill these jobs. This trend is expected to continue and demographic forecasts suggest that the need for financial planning services will continue to create lots of opportunity for those involved in the business.
- Answer provided by Grant Henri, CFP, RBC Dominion Securities. (April 2007)