How to Get a Job in Wealth Management / How much can you make in Wealth Management?

Summary

In this insightful video, James Phan shares his wealth management experience, emphasizing the importance of sales skills for breaking into the industry. He discusses the shift towards a fee-based model, the challenges of building a client base, and the lucrative potential once established. James advises aspiring wealth managers to consider certifications like CIM, CFP, CFA, and MBA, while highlighting the high-risk, high-reward nature of the career. He also touches on the future of wealth management, noting the increased competition due to accessible information and the need for a strategic approach to succeed.

Takeaways

• 😀 James Fen, the speaker, has an MBA from the Schulich School of Business and has been working in wealth management for over three or four years in Toronto, Canada.
• 🏦 James initially broke into wealth management through an internship during his MBA, where he cold-called high-net-worth investors to convince them to invest with his firm.
• 📈 To succeed in wealth management, especially as an investment advisor, portfolio manager, or wealth manager, strong sales skills are crucial for convincing investors to invest their money.
• 💼 Sales skills are more important than financial knowledge for breaking into wealth management, although education in finance is necessary for getting an interview.
• 📚 For those interested in a more technical role in wealth management, such as a technical analyst or portfolio manager, obtaining certifications like CIM, CFP, CFA, or an MBA can be beneficial.
• 💰 The wealth management industry is shifting towards a fee-based model, where advisors charge a percentage of the portfolio's value, which can lead to significant income for successful advisors.
• 🔍 Building a large book of business is essential for wealth managers, as it allows them to earn a consistent income from managing assets without constantly needing to find new clients.
• 💼 Joining a team can be a good strategy for new advisors, as it provides experience and a salary, but it may involve waiting for years for the opportunity to take over a retiring advisor's book of business.
• 🚀 The wealth management industry is becoming more competitive, with increased requirements for advisors to bring in more assets each year, making it a high-risk, high-reward career.
• 🌐 Information is more accessible today, which makes it harder for advisors to stand out, as many young investors are already knowledgeable about investing and use tools like robo-advisors and index funds.
• 🏆 Despite the challenges, wealth management can be a lucrative career if one can build a substantial book of business and continue to manage it effectively.

Q & A

What is the main topic of the video?

The main topic of the video is the speaker's experience in wealth management, advice on breaking into the field, and thoughts on the future of wealth management.

What is the speaker's name and where does he work?

The speaker's name is James Fen, and he works in the financial industry in downtown Toronto, Canada.

What educational background does James Fen have?

James Fen has an MBA from the Schulich School of Business.

How did James Fen initially get into wealth management?

James Fen got into wealth management through an internship during his MBA years, where he worked as an investment advisor and cold-called high-net-worth investors.

What does James Fen emphasize as the most important skill for wealth management roles?

James Fen emphasizes sales skills as the most important for wealth management roles, as they are crucial for convincing high-net-worth investors to invest their money.

What are some certifications that can be beneficial for wealth management roles according to James Fen?

Some beneficial certifications for wealth management roles mentioned by James Fen include the CIM (Chartered Investment Manager), CFP (Certified Financial Planner), CFA, and an MBA.

What is the current trend in the wealth management industry regarding payment models?

The wealth management industry is moving towards a fee-based model, where advisors or portfolio managers charge a percentage of the entire portfolio as their fee.

What challenges does a new advisor face in the wealth management industry?

A new advisor faces challenges such as convincing high-net-worth investors to trust a young advisor with their investments and the pressure to bring in a significant amount of assets to meet bank or dealer requirements.

What strategy did James Fen use to overcome the challenges of finding clients in wealth management?

James Fen used a cold-calling marketing strategy, calling 300 to 400 households or business owners every day to secure meetings and convince them to invest with him.

What is the potential downside of joining a team as a new advisor in wealth management?

The potential downside of joining a team is that new advisors typically earn a salary rather than commissions, and they may have to wait for many years for the opportunity to buy a book of business from a retiring advisor.

Why does James Fen consider wealth management one of the best industries to get into?

James Fen considers wealth management one of the best industries because, once a substantial book of business is established, advisors can live comfortably off the recurring fees and have the opportunity to sell their book for a significant amount upon retirement.