3/11/2015

FinancialEntrepreneur

inancialEntrepreneur
JANUARY1,2004RAYMONDFAZZI

FinancialEntrepreneur.
Thepathtoacareerinfinancialplanninghashistoricallybeensomethingofanunexpecteddetourformanypeopletakenupasacareerchangerather
thanafullfledgedcourseofstudyincollege.
Butthattrendisinthemidstofachange.ThenumberofCFPregisterededucationprogramshasbeenontheriseinrecentyears,ashasthenumber
ofcollegesanduniversitieswithundergraduatedegreesinfinancialplanning.
It'soneofthekeychangesthatsomesayispartoftheemergenceoffinancialplanningasadistinctandrecognizableprofession,buttressedbya
definedsetofeducationalcriteriaratherthanavaguemeldingofvariousfinancialservicesroles.
Yetit'sachangethatcouldhavemoreofanimpactthanestablishedfinancialplannersmayrealize.
Withtheriseofcollegiatefinancialplanningprograms,therehasalsobeenariseinthenumberofyoung,knowledgeablejobcandidateslookingforthe
onethingtheycan'tgetincollegealone:experience.
Whatmanyofthemarelookingfor,saysJonathanGuyton,principalofCornerstoneWealthAdvisorsinMinneapolis,areinternshipprogramsthatcan
providethemaoneortwoyearbridgebetweenacademiaandrealworldfinancialplanning.
That'swhyGuyton,aswellastheFinancialPlanningAssociation,aretryingtoencouragemorefinancialadvisorstoconsidersuchprograms.
Thebiggestsellingpoint,saysGuyton,isthattheavailablepoolofinternsisprobablybiggerandmoretalentedthanit'severbeen.It'sjustamatterof
gettingestablishedfinancialadvisorstorealizeit,headds.
"Itwasn'tthatlongagothatifyouaskedadvisorswhatthey'relookingforintermsofeducationalbackground,theymightsayfinance,accountingor
economics,almostlikefinancialplanningdoesn'tmatter,"saysGuyton,aformerFPAdirectorwhohasbeenoneoftheleadersintheorganization's
effortstoencouragemoreinternshipprograms."Nowifyouwantsomeonetocomeinandmakeadifferencewithfinancialplanningskills,youhavethat
availabletoyou."
Currentlytherearenostatisticsavailableonhowmanyfinancialadvisorsprovideinternshipprograms.Anecdotally,however,thenumberisgenerally
consideredtobelow.That'soneofthereasonstheFPAhasputarenewedfocusonsuchprograms.Theorganizationrecentlyaddedaninternship
data:text/htmlcharset=utf8,%3Ch2%20style%3D%22margin%3A%200px%3B%20padding%3A%200px%3B%20fontsize%3A%2018px%3B%20fontweight%3A%20bold%3B%20textalign%3A%20left%3B%20color%3A%20rgb(

1/4

3/11/2015

FinancialEntrepreneur

programsectiontoitsWebsite,atwww.fpanet.org,whichprovidesasetofcriteriaplannerscanuseinsettingupaprogramaswellaslistingsforboth
potentialinternsandplannerslookingtofillinternshippositions.
Despitethedearthofinternshippositionsinthefinancialplanningfield,therearefirmsthathavebeenrunningsuchprogramssuccessfullyforanumber
ofyears.
AtLegendFinancialAdvisorsInc.inPittsburgh,internshipprogramshavebeeninexistencesincethefirm'sfoundingin1994.
Thefirmhashiredabout47internsduringthattime,saysLouStanasolovich,Legend'spresidentandCEO.Allpotentialinterns,hesays,gothroughthe
samehiringprocessthatanyotherjobcandidategoesthrough,includingtwointerviews,drugtestsandabackgroundcheck.Thebenefit,asheseesit,
ismutual.Thefirm,hesays,getsworkerswhoareeagertolearnandgainexperience,aswellaspotentialfulltimeemployees.Theinterns,after15to
18monthsworkingatthefirmwithanaveragewageof$7perhour,canwalkintojobinterviewswithpracticalexperience."Weareatoughshopto
workfor,"hesays."We'reverydemanding,andfrankly,wewouldputupourinternsagainstanycollegestudentintermsofworkethic."
Thefirmmainlygetsitsinternsbyattendingjobfairsatlocalcollegesanduniversities.Nolocalinstitutionshaveanundergraduatedegreeprogramin
financialplanning,sointernshavecomefromvariousfinancerelatedprograms,Stanasolovichsays.Thefirmalsolistsinternshipopeningsonjoblisting
Websites.Threeyearsago,thefirmstartedhiringmarketinginterns,andalsohasinstitutedaprogramthatpaysinternsa$100bonusiftheyrecruitan
internthemselves.
Lastyear,thefirmreceived200resumesfortwofinancialplanninginternpositions,hesays.
Sinceitstartedtakinginterns,aboutteneventuallywerehiredforfulltimepositions,Stanasolovichsays.
"Themostvaluableaspectofinternshipsistheopportunitytoseeapotentialcorestaffemployeeinaction,"hesays."Wecanhaveafirsthandviewof
theirworkhabitsandoverallfitwithinourorganization."
LindaTarbox,presidentofTarboxEquityInc.inNewportBeach,Calif.,hasbeenworkingwithinternsforthepasttenyearsaspartofherroleasa
teacherinthefinancialplanningprogramattheUniversityofCaliforniaatIrvine.Duringthattimeshe'sseenadramaticincreaseinthenumberof
financialplanningfirmsthathavecreatedinternshippositions."Inthebeginning,wehadalotmoreinternsthanpotentialsponsors,"saysTarbox."Now
it'squitetheopposite."
Amongthereasonsfirmshavebeenhesitantabouttakinginternsareconcernsabouthowmuchtrainingaprogramrequires,whetherthetrainingtime
isworththebenefitsand,tosomeextent,aconcernaboutwhetherstudentsshouldbegivenaccesstoprivateclientinformation.Thetradeoffbetween
trainingrequirementsandthebenefitsofhavinganinternarejudgmentsthathavetobemadebyeachindividualfirm,shesays.Butsheaddsthatone
data:text/htmlcharset=utf8,%3Ch2%20style%3D%22margin%3A%200px%3B%20padding%3A%200px%3B%20fontsize%3A%2018px%3B%20fontweight%3A%20bold%3B%20textalign%3A%20left%3B%20color%3A%20rgb(

2/4

3/11/2015

FinancialEntrepreneur

ofthemostimportantthingsaninterngetsoutofworkinginafinancialplanningfirmisjustwatchingplannersinaction.ThisissomethingTarbox
learnedherselfwhenshefrettedoverwhethershewasgivingoneofherinternsenoughwork."Shekindofsatmedownandsaid,'IfIcouldjustsitand
listentoyou,Iwilllearnsomuch,'"Tarboxsays.Asfortheconfidentialityofclientinformation,shesays,it'sroutinetohaveinternssignaconfidentiality
agreement.
Advisorsconsideringaninternshipprogramshouldstarttheprocessbycontactinglocalcollegesanduniversitiestofindoutwhattypeoffinancial
programstheymayhave,thoseinvolvedintheprogramssay.Thedepthofprogramswillvarybyinstitution,aswilltheexistenceofaformalprocessfor
recruitinginterns.
Guytonalsolistssomebasicstepsanadvisoryfirmcantake:
Getreadytoreceiveanintern.Asuccessfulinternshipprogramshouldcreateanenvironmentthat'sbeneficialtoboththeinternandthefirm,Guyton
says.Thatmeans,forinstance,thatthefirmshouldsetaside30to50minuteseachweektomeetwiththeinterntodiscusstheirroleandtheir
performance,andtoreceivefeedback.
Guytonsaysfirmsshouldalsohaveasetofwrittenproceduresforworkingwithclients.This,hesays,makesiteasiertoassigninternsjobssuchas
inputtingdata,preparinganagendaforareviewmeeting,updatingportfolioreportsordraftingafollowupletterfromareviewmeeting.
"Ifthesearethingsyoudoalready,itmakesitaloteasiertotakeaskilledpersonandplugthemintotheprocess,"hesays.
Knowwhatyou'relookingfor.Decidingonanintern'sdutiesbeforeselectingapersonforthepositioniscrucial,saysGuyton.Forexample,isafirm
lookingforsomeonewithananalyticalbackgroundtodobehindthesceneswork?Orwilltheinternplayaroleinworkingwithclientsorobserving
advisor/clientmeetings,inwhichcasepeopleskillswillbehelpful?ShouldaninternbeproficientinMicrosoftOfficewalkinginthedoor,oristhefirm
willingtotrainthem?Firmsneedtorealize,Guytonsays,thatstudentsmajoringinfinancialplanningandthosewithafinancemajorwillhavedifferent
skillstooffer.HecitedtheexperienceofoneplannerinCaliforniawhodecidedhiringfinancemajorsasinternswasthewrongwaytogo."Hesaidit
tookhimthreemonthstoconvincethemthatbeingafinancialplannerwasagoodthing,"Guytonsays."Hefinallysaid,'I'msickofdoingthat.Iwant
financialplanningmajors.'Theycomeinalreadyhavingmadeadecisionthatthisisacareerthey'reatleastinterestedin."
Followasmarthiringprocess.FirmsshouldinsistthattheirinternshaveeithercompletedorenrolledinaCFPregisteredprogram,unlessthereisno
areainstitutionwiththoseprograms.Guytonsaysthereasonforthisistwofold.First,itprovidesthefirmwithsomeonewhohasaninterestinthefield.
Second,hesays,itprovidesapointofentryintothefieldforaninternwithaseriousinterestinthefinancialplanningprofession."Whenthese
opportunitiesareavailable,youneedtobesuretheygotothefolkswhohavealreadymadeaninvestmentinlearningaboutfinancialplanning,"Guyton
says."Onceyougetitdowntoacoupleoftopcandidates,screenthemthewayyouwouldanyprospectiveemployee.
data:text/htmlcharset=utf8,%3Ch2%20style%3D%22margin%3A%200px%3B%20padding%3A%200px%3B%20fontsize%3A%2018px%3B%20fontweight%3A%20bold%3B%20textalign%3A%20left%3B%20color%3A%20rgb(

3/4

3/11/2015

FinancialEntrepreneur

Toreadmorestories,clickhere

data:text/htmlcharset=utf8,%3Ch2%20style%3D%22margin%3A%200px%3B%20padding%3A%200px%3B%20fontsize%3A%2018px%3B%20fontweight%3A%20bold%3B%20textalign%3A%20left%3B%20color%3A%20rgb(

4/4