Financial Entrepreneur
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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
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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
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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.
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