There are many people who feel that to make money in todays
market and in the future, you must work off of advisory fees and
not commissions.
An Investment or Financial Adviser is someone who manages a
portfolio or advises a person what to do in their portfolio. For
these services, an Adviser can retain a fee for doing so. They
operate much like an Accountant or an Attorney would. Rather
than directly sell a security for commission, they will receive
a fixed percentage of the assets they manage. The license that
most of them receive is the SERIES 65 (Registered Investment
Advisor). What makes this arrangement attractive for the Adviser
is that your income stream is much steadier. Your fees are set
so if a customer is not particularly active, you still retain
the normal advisory fee you charge.
The arrangement is equally beneficial to the customer. A
customer does not feel the same pressure to buy as they would
from a commission Stockbroker. A Stockbroker does not make money
unless a customer buys or sells.
The SERIES 65 does not need to be sponsored and can be practiced
independently. It also looks terrific on a resume and only takes
4-6 weeks to study for. If you are looking to add financial
credentials prior to entering the securities business, the
Series 65 is a great license to get. It is a multiple choice
test and no educational pre-requisites are required.
A few states do not require an individual to hold a SERIES 65
to practice investment advice but it is a good idea to get it
anyway. You want to be aware of certain rules and background of
the industry. The licensing curriculum will explain all of the
securities that apply. It is also a good “Title” to practice
business under. Thousands and thousands of CPA’s, Lawyers, and
other professionals have obtained their SERIES 65 license and
became Financial Advisors. The ability to offer investment
advice to their existing clientele has proved to be very
beneficial to their business.
You are not allowed to work on commissions and advisory fees
from the same client. The SEC views that as “double charging”,
so you should decide what route is best for you. As said
earlier, many feel the “fee route” is the best way to go now.
Good Luck!
Nick Hunter
http://www.articlesbase.com/education-articles/become-an-investment-advisor-3166.html
#1 by davy c on November 12th, 2009
Quote
How do I become an investment advisor?
I currently have a BS in interdisciplinary studies (from a basically unknown school) and was accepted into medical school. However, I am trying to decide whether or not to continue since medical education cost so much. I am very bright, although I need to work on interpersonal skills. What I really want to know is how to get started in an investment advisor career. I know there might be several years of slaving, but there is at least 7 years of that to become a doctor anyway.
#2 by mitch w on November 12th, 2009
Quote
you need to get a job with a bank that will pay for your licensing. I am state licensed for investment products as well as insurance products and have no paid a dime. There are different rules for every state but i know where i live there are basically 4 tests you would have to pass… honestly though i would highly recommend starting as a banker or somewhere in that position to learn the skills and selling skills for the job. You also said you need to work on interpersonal skills… if you dont build rapore with your clients you wont make anything.
References :
Banker
#3 by AD989 on November 12th, 2009
Quote
Take a year off and work/travel abroad then go to medical school. Or go to pharmacy school. It’s only four years.
References :
#4 by Ced Reynolds on November 12th, 2009
Quote
Interesting consideration. Becoming an investment advisor could be approached a couple of ways.
1. Hire on with an big name insurance company as a career life insurance agent.
2. Become an independent life insurance agent.
Both of these options require licensing. The first license you’ll want to get is a life insurance license. Working in the life insurance field will give you a good estimation if you’re fit for the financial services field. You’ll have the option of selling life insurance, health insurance and annuities (depends on what state you live in).
References :
http://www.hbwinc.com
#5 by googie on November 12th, 2009
Quote
You were accepted into a medical school and want to be an investment advisor? You must have the interest in medicine so why not pursue the field? There are scholarships, internships which can defray some costs . There will always be a need for MDs. They usually make fairly good incomes and those I know think they are investment geniuses. So now you can have both careers.
References :