3/11/2015 FinancialEntrepreneur

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inancialEntrepreneurJANUARY1,2004RAYMONDFAZZI

FinancialEntrepreneur.

Thepathtoacareerinfinancialplanninghashistoricallybeensomethingofanunexpecteddetourformanypeopletakenupasacareerchangeratherthanafullfledgedcourseofstudyincollege.

Butthattrendisinthemidstofachange.ThenumberofCFPregisterededucationprogramshasbeenontheriseinrecentyears,ashasthenumberofcollegesanduniversitieswithundergraduatedegreesinfinancialplanning.

It'soneofthekeychangesthatsomesayispartoftheemergenceoffinancialplanningasadistinctandrecognizableprofession,buttressedbyadefinedsetofeducationalcriteriaratherthanavaguemeldingofvariousfinancialservicesroles.

Yetit'sachangethatcouldhavemoreofanimpactthanestablishedfinancialplannersmayrealize.

Withtheriseofcollegiatefinancialplanningprograms,therehasalsobeenariseinthenumberofyoung,knowledgeablejobcandidateslookingfortheonethingtheycan'tgetincollegealone:experience.

Whatmanyofthemarelookingfor,saysJonathanGuyton,principalofCornerstoneWealthAdvisorsinMinneapolis,areinternshipprogramsthatcanprovidethemaoneortwoyearbridgebetweenacademiaandrealworldfinancialplanning.

That'swhyGuyton,aswellastheFinancialPlanningAssociation,aretryingtoencouragemorefinancialadvisorstoconsidersuchprograms.

Thebiggestsellingpoint,saysGuyton,isthattheavailablepoolofinternsisprobablybiggerandmoretalentedthanit'severbeen.It'sjustamatterofgettingestablishedfinancialadvisorstorealizeit,headds.

"Itwasn'tthatlongagothatifyouaskedadvisorswhatthey'relookingforintermsofeducationalbackground,theymightsayfinance,accountingoreconomics,almostlikefinancialplanningdoesn'tmatter,"saysGuyton,aformerFPAdirectorwhohasbeenoneoftheleadersintheorganization'seffortstoencouragemoreinternshipprograms."Nowifyouwantsomeonetocomeinandmakeadifferencewithfinancialplanningskills,youhavethatavailabletoyou."

Currentlytherearenostatisticsavailableonhowmanyfinancialadvisorsprovideinternshipprograms.Anecdotally,however,thenumberisgenerallyconsideredtobelow.That'soneofthereasonstheFPAhasputarenewedfocusonsuchprograms.Theorganizationrecentlyaddedaninternship

3/11/2015 FinancialEntrepreneur

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programsectiontoitsWebsite,atwww.fpanet.org,whichprovidesasetofcriteriaplannerscanuseinsettingupaprogramaswellaslistingsforbothpotentialinternsandplannerslookingtofillinternshippositions.

Despitethedearthofinternshippositionsinthefinancialplanningfield,therearefirmsthathavebeenrunningsuchprogramssuccessfullyforanumberofyears.

AtLegendFinancialAdvisorsInc.inPittsburgh,internshipprogramshavebeeninexistencesincethefirm'sfoundingin1994.

Thefirmhashiredabout47internsduringthattime,saysLouStanasolovich,Legend'spresidentandCEO.Allpotentialinterns,hesays,gothroughthesamehiringprocessthatanyotherjobcandidategoesthrough,includingtwointerviews,drugtestsandabackgroundcheck.Thebenefit,asheseesit,ismutual.Thefirm,hesays,getsworkerswhoareeagertolearnandgainexperience,aswellaspotentialfulltimeemployees.Theinterns,after15to18monthsworkingatthefirmwithanaveragewageof$7perhour,canwalkintojobinterviewswithpracticalexperience."Weareatoughshoptoworkfor,"hesays."We'reverydemanding,andfrankly,wewouldputupourinternsagainstanycollegestudentintermsofworkethic."

Thefirmmainlygetsitsinternsbyattendingjobfairsatlocalcollegesanduniversities.Nolocalinstitutionshaveanundergraduatedegreeprograminfinancialplanning,sointernshavecomefromvariousfinancerelatedprograms,Stanasolovichsays.ThefirmalsolistsinternshipopeningsonjoblistingWebsites.Threeyearsago,thefirmstartedhiringmarketinginterns,andalsohasinstitutedaprogramthatpaysinternsa$100bonusiftheyrecruitaninternthemselves.

Lastyear,thefirmreceived200resumesfortwofinancialplanninginternpositions,hesays.

Sinceitstartedtakinginterns,aboutteneventuallywerehiredforfulltimepositions,Stanasolovichsays.

"Themostvaluableaspectofinternshipsistheopportunitytoseeapotentialcorestaffemployeeinaction,"hesays."Wecanhaveafirsthandviewoftheirworkhabitsandoverallfitwithinourorganization."

LindaTarbox,presidentofTarboxEquityInc.inNewportBeach,Calif.,hasbeenworkingwithinternsforthepasttenyearsaspartofherroleasateacherinthefinancialplanningprogramattheUniversityofCaliforniaatIrvine.Duringthattimeshe'sseenadramaticincreaseinthenumberoffinancialplanningfirmsthathavecreatedinternshippositions."Inthebeginning,wehadalotmoreinternsthanpotentialsponsors,"saysTarbox."Nowit'squitetheopposite."

Amongthereasonsfirmshavebeenhesitantabouttakinginternsareconcernsabouthowmuchtrainingaprogramrequires,whetherthetrainingtimeisworththebenefitsand,tosomeextent,aconcernaboutwhetherstudentsshouldbegivenaccesstoprivateclientinformation.Thetradeoffbetweentrainingrequirementsandthebenefitsofhavinganinternarejudgmentsthathavetobemadebyeachindividualfirm,shesays.Butsheaddsthatone

3/11/2015 FinancialEntrepreneur

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ofthemostimportantthingsaninterngetsoutofworkinginafinancialplanningfirmisjustwatchingplannersinaction.ThisissomethingTarboxlearnedherselfwhenshefrettedoverwhethershewasgivingoneofherinternsenoughwork."Shekindofsatmedownandsaid,'IfIcouldjustsitandlistentoyou,Iwilllearnsomuch,'"Tarboxsays.Asfortheconfidentialityofclientinformation,shesays,it'sroutinetohaveinternssignaconfidentialityagreement.

Advisorsconsideringaninternshipprogramshouldstarttheprocessbycontactinglocalcollegesanduniversitiestofindoutwhattypeoffinancialprogramstheymayhave,thoseinvolvedintheprogramssay.Thedepthofprogramswillvarybyinstitution,aswilltheexistenceofaformalprocessforrecruitinginterns.

Guytonalsolistssomebasicstepsanadvisoryfirmcantake:

Getreadytoreceiveanintern.Asuccessfulinternshipprogramshouldcreateanenvironmentthat'sbeneficialtoboththeinternandthefirm,Guytonsays.Thatmeans,forinstance,thatthefirmshouldsetaside30to50minuteseachweektomeetwiththeinterntodiscusstheirroleandtheirperformance,andtoreceivefeedback.

Guytonsaysfirmsshouldalsohaveasetofwrittenproceduresforworkingwithclients.This,hesays,makesiteasiertoassigninternsjobssuchasinputtingdata,preparinganagendaforareviewmeeting,updatingportfolioreportsordraftingafollowupletterfromareviewmeeting.

"Ifthesearethingsyoudoalready,itmakesitaloteasiertotakeaskilledpersonandplugthemintotheprocess,"hesays.

Knowwhatyou'relookingfor.Decidingonanintern'sdutiesbeforeselectingapersonforthepositioniscrucial,saysGuyton.Forexample,isafirmlookingforsomeonewithananalyticalbackgroundtodobehindthesceneswork?Orwilltheinternplayaroleinworkingwithclientsorobservingadvisor/clientmeetings,inwhichcasepeopleskillswillbehelpful?ShouldaninternbeproficientinMicrosoftOfficewalkinginthedoor,oristhefirmwillingtotrainthem?Firmsneedtorealize,Guytonsays,thatstudentsmajoringinfinancialplanningandthosewithafinancemajorwillhavedifferentskillstooffer.HecitedtheexperienceofoneplannerinCaliforniawhodecidedhiringfinancemajorsasinternswasthewrongwaytogo."Hesaidittookhimthreemonthstoconvincethemthatbeingafinancialplannerwasagoodthing,"Guytonsays."Hefinallysaid,'I'msickofdoingthat.Iwantfinancialplanningmajors.'Theycomeinalreadyhavingmadeadecisionthatthisisacareerthey'reatleastinterestedin."

Followasmarthiringprocess.FirmsshouldinsistthattheirinternshaveeithercompletedorenrolledinaCFPregisteredprogram,unlessthereisnoareainstitutionwiththoseprograms.Guytonsaysthereasonforthisistwofold.First,itprovidesthefirmwithsomeonewhohasaninterestinthefield.Second,hesays,itprovidesapointofentryintothefieldforaninternwithaseriousinterestinthefinancialplanningprofession."Whentheseopportunitiesareavailable,youneedtobesuretheygotothefolkswhohavealreadymadeaninvestmentinlearningaboutfinancialplanning,"Guytonsays."Onceyougetitdowntoacoupleoftopcandidates,screenthemthewayyouwouldanyprospectiveemployee.

3/11/2015 FinancialEntrepreneur

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