How To Be a Financial Advisor Without a Degree

Summary

In this video, Dominic addresses the question of whether a college degree is necessary to become a financial adviser. He explains that while a degree isn't required, there are three main scenarios for entering the field: the traditional route with a finance-related degree, starting in the industry without finishing college and gaining experience, and career changers leveraging life experience. Dominic emphasizes the importance of passion over money and suggests building a financial runway and networking before making a career switch.

Takeaways

• 🎓 The traditional route to becoming a financial adviser involves obtaining a college degree, typically in a finance-related field.
• 🏦 Post-graduation, gaining experience is crucial, and a college degree can be leveraged to obtain advanced designations like the CFP.
• 💼 A college degree can provide a financial advantage later in one's career due to higher potential earnings.
• 🔗 The public is more familiar with professionals who hold designations like CFP, which can be beneficial for business growth.
• 👨‍🏫 For those without a college degree, finding a mentor in the financial industry can provide valuable insights and guidance.
• 🏢 Starting in retail banking or selling financial products can be a pathway into the industry without a college degree.
• 💰 Chasing passion and ambition is advised over the pursuit of money, as it can lead to more sustainable career satisfaction.
• 🔄 Career changers are often seen as more genuine and bring a well-rounded perspective to the financial advising industry.
• 🛠️ For career changers, it's recommended to volunteer or shadow professionals to gain experience before fully transitioning.
• 👥 Networking is essential for those starting from scratch, as it helps build connections in a new industry.

Q & A

Does one need a college degree to become a financial adviser?

No, a college degree is not a strict requirement to become a financial adviser.

What is the traditional route to becoming a financial adviser?

The traditional route involves obtaining a bachelor's degree in a finance-related field, such as finance, economics, business management, marketing, or accounting, and then gaining experience in the field.

What advantages does having a college degree offer in the financial advising field?

A college degree allows individuals to pursue advanced designations like the CFP, which requires an education requirement, and can lead to higher compensation later in one's career.

What is the significance of the CFP designation in the financial advising industry?

The CFP designation is well-recognized by the public due to strategic marketing by the CFP Board of Standards, which can help financial advisers build their business.

What alternative paths can someone take if they don't want to follow the traditional route to become a financial adviser?

Alternative paths include finding a mentor in the industry, starting in a money center or regional bank, or selling financial products and moving up through the industry.

What is the recommended approach for someone who is on the fence about finishing college to enter the financial advising field?

It's recommended to get a mentor, gain experience through internships or entry-level positions, and consider moving through banking or product sales roles within the industry.

What advice is given to career changers who want to become financial advisers?

Career changers should stay in their current career while gaining experience in the financial advising field through volunteering or shadowing, and build a network before making a full transition.

Why are career changers with more life experience often valued in the financial advising industry?

Career changers bring a well-rounded perspective and a comprehensive approach to financial advising, which can be beneficial when dealing with clients and their diverse financial needs.

What is the importance of having a financial runway when transitioning into a new career like financial advising?

A financial runway provides the necessary financial stability and time to gain experience and build a client base without the immediate pressure of needing an income.

What is the potential downside of entering the financial advising field without a strong foundation or mentor?

Entering without a strong foundation or mentor can lead to a slippery slope where one might start selling products or services they don't believe in, solely for financial gain, which can be detrimental to one's career in the long run.