The December Investment Executive ran great article featuring Investors Group Consultant Ryan Shoemaker and why he chose to start a financial advisor career with Investors Group.

1. B4 / Investment executIve Building your Business December 2009 December 2009 Building your Business Investment executIve / B5
Young
guns An advisor’s first few years in the financial services industry
can be the toughest. Here are some strategies that can help
those new to the industry achieve enduring success
situations. Once Dhanji had five years’ ex-
perience under his belt, he began to build
his own book of business. By that time, he
says, he felt well prepared for the challenge.
Working in an established practice can
also eliminate the compensation-related
stresses of the early years on the job. Dhanji
earned a salary as an assistant, which let
him concentrate on comprehensive finan-
cial planning rather than making commis-
sion-based sales.
“I didn’t really have to go out and sell prod-
ucts to cover my overhead,” he says. “I was
earning a salary, and then I made the transi-
cov E r sto ry By m Ega n h a r m a n tion to being a planner.”
Keller has taken a similar approach to his
career. Two years ago, he found a job work-
R
yan shoemaker entered the corporate cultures, compensation struc- ter the industry without the practical skills could mean talking to former classmates or ing with senior advisor Ken Stern at Creative
financial services industry at the tures, support services and training pro- they need to work effectively with clients. people you know from sports leagues, char- Planning, helping Stern manage his clients
peak of the financial crisis. Fresh grams. A firm that offers the ideal working “There is no [formal] process through ity groups or other organizations in which while Keller gradually builds his own client
out of university and 21 years old, environment for one advisor could be com- which people are learning the essential soft you are involved. base.
he began hunting for a job as a financial pletely unsuitable for another, says Heather skills that are going to allow them to work Some young advisors feel most comfort- “Working for someone like Ken has been
advisor at a time when investors were dis- Mills, public relations specialist with the with people and to build relationships,” says able targeting clients within their age range. the best opportunity that has ever presented
gruntled and few firms were expanding. In Financial Planners Standards Council. Train. While technical knowledge is crucial, For instance, Guilfoyle spent his first three itself to me,” Keller says. “I have the know-
such a challenging environment, the pros- “You have to think about where you would he says, skills such as listening, communi- years in the industry focused on serving ledge of a seasoned advisor and the stabil-
pects for a young and inexperienced advisor fit in,” she explains. cating and building relationships contribute younger, high-income professionals. ity of a paycheque as I’m growing my book
appeared bleak. Young advisors in particular are likely much of the value to financial advice. “All of “It was a bit of a natural fit,” he says. “In of business.”
But, eager to launch his career, Shoemaker to need more comprehensive training and those wonderful things that make a business many cases, I was recommending and help- Joining a team practice can also lead to
got a job as an advisor with Investors Group guidance in their early years. Taylor Train, tick are not being transferred to the new gen- ing them implement strategies that I was opportunities for young advisors to buy a
Inc. in Toronto in December 2008. A year chief operating officer with Advocis, says eration of advisors.” personally using myself.” book of business eventually, as aging advi-
later, his career is thriving. Managing a base many dealer firms have scaled back their But young advisors can work at de- But, he warns, prospects in the younger sors begin thinking about their retirement.
of clients that is steadily growing through re- training and development programs in re- veloping these skills by working with a men- market are limited. A very small percent- “There’s a huge opportunity for succession
ferrals, Shoemaker has already met his ob- cent years. He urges young advisors to ask tor. Shoemaker says shadowing a senior ad- age of Canadians with significant investible planning in this business,” says Halpern,
jectives for the year, and he’s eager to see prospective employers whether they provide visor at Investors Group was one of the most assets are in their 20s and 30s, he says. who encourages rookies to approach senior
what else he can achieve. the training that meets the budding advisors’ valuable parts of his training. Still, working with clients in your own advisors in seeking a position in which the NORM BETTS
“Overall, I’ve attained my goals — both needs — whether it is technical training on “I really wanted to see how someone who age group — even those who have yet to ac- rookies would provide complementary ser-
personally and in business — for this year,” financial issues or support in building client had experience would deal with their cli- cumulate significant financial assets — can vices to clients, such as meeting with their Ryan Shoemaker, 22, says training and career-development programs were a key factor in his decision to work with Investors Group.
says Shoemaker, now 22. “But it’s the type of relationships. ents,” he says. “He took me through the en- provide a good starting point. Gaining the children. “It develops a relationship and you
industry where there is no ceiling. I’m always The best approach to researching firms, tire planning process.” confidence to work with a broader spec- learn from that advisor,” Halpern says. “And, “A lot of people who are 30 to 50 — in the Jacks encourages young advisors to man- agement can be a challenge of its own for
striving to reach the next level.” the experts say, is to speak to advisors in the Some firms offer mentoring or succes- trum of clients can come with time. After ultimately, it would be nice to have a book of wealth-accumulation phase of their lives — age their communications with clients ex- young advisors. Jacks says many are caught
But, like any young advisor starting out industry about their experiences with their sion-planning programs that pair up new Guilfoyle gained experience working with business handed off to you.” are looking for someone who’s going to be tremely carefully: always proofread letters offguard by the hefty workload and the vast
in the business, Shoemaker faces many firms. advisors with industry veterans. Other ways younger clients, he has become more com- with them until they retire or until they’re and emails to ensure accuracy, and avoid amount of learning in the first few years of
challenges. Shoemaker spent two months researching of meeting mentors include getting involved fortable reaching out to other groups, such n earning credibility doing their estate planning,” Shoemaker sending hastily written emails from a mo- the job.
firms before accepting a job. The most im- in professional associations such as Advocis as business owners. Conveying credibility is a key challenge says. “Someone in their late 50s or early 60s bile device. “It’s a steep learning curve, and you have
n the first few years portant considerations for him were train- or networking at industry conferences. When trying to appeal to a specific tar- faced by young advisors, especially when isn’t going to be there when [clients] retire.” “People expect respectful and accurate to be prepared for that,” she says, “and pre-
An advisor’s first couple of years in the ing and ongoing development, and he chose Blair Guilfoyle, a 29-year-old advisor with get market, Mills says, it’s important to edu- working with older clients. Regardless of When working with clients, Shoemaker communications,” she says. pared for the effects of the demands of your
industry can be extremely difficult. Young Investors Group because he was impressed Toronto-based Guilfoyle Financial Planning cate yourself on financial products or trends your training or education, a young face typ- also finds that his level of confidence is far business and your clients on your person-
advisors face the daunting tasks of earn- by its offerings in these areas. Inc., the firm founded by his father, finds relevant to that market. Someone targeting ically suggests a lack of experience, which more important than his age. “People can n continuing education al life.”
ing credibility, attracting new business and His training involved eight days of in-class it effective to approach advisors who are younger clientele, for instance, should con- can cause clients to question your abilities. smell confidence from a mile away,” he says. Educational programs and designations Jacks recommends blocking off specific
learning how to work effectively with clients, sessions with specialists from across the speaking at conferences. He offers to buy sider learning about socially responsible in- “If you’re a younger advisor, they’ll look at “You just have to focus on being confident can also help young advisors build credibil- parts of your day for administrative work,
all while adjusting to the long hours and hec- country, in which Shoemaker learned about them coffee or lunch in return for the oppor- vesting, which is popular among younger you and say: ‘What market cycles have you in what you’re saying, confident in the plan ity. The FPSC has witnessed a growing num- continuing education or other important ac-
tic pace of the job. The challenges and de- all aspects of financial planning, including tunity to ask them about their experiences in clients. seen?’” Mills says. “Instinctively, people tend that you’re providing.” ber of young individuals pursuing their cer- tivities that could get squeezed out during
mands drive away a large proportion of new cash management, insurance, taxes, retire- the industry. Holding informational seminars or events to trust the grey hair — someone who has Halpern agrees that other factors are more tified financial planner designation early in the daily grind. Make time for your person-
advisors during those early years. Some ment planning and estate planning. Another “Generally, most of the senior advisors could also help advisors attract clients with- been in the industry for a while.” significant than an advisor’s age. “It doesn’t their careers. al life, too: “Work with a strict schedule. And
dealers report that as few as 35% of rookie 10 days of training were devoted to self-study, have been receptive to that,” he says. “There in their target demographic. For example, if Keller finds that an effective way to deal matter how much grey hair you have or wheth- “There is immense value in earning a cer- that schedule should include not just work
recruits remain with the firm after their first during which time Shoemaker read exten- are a number of them out there whom I try you are targeting younger clients, consider with the issue is to address it directly with er you wear bifocals,” he says. “The value that tification — especially for someone young- but time for yourself and your family.”
three years on the job. sively on various aspects of running a busi- to meet with on a regular basis, just to pick holding a seminar on financing a first home clients: “If I feel that a potential client is hesi- you’re going to have with anybody is in the er, because you’re investing in yourself at Shoemaker agrees. He works long hours,
“The first 24 to 36 months are the hardest ness, including compliance, budgeting and their brains and find out what worked well or saving for a child’s education. tant based upon my age, I always bring it up. perception that you are a trusted advisor.” an early stage in your career,” says Mills. but he always reserves his off days for him-
time in this business,” says Daniel Keller, a accountability. Investors Group’s training for them early on in their careers.” (See “The I think it’s important to address it; not to try “It shows clients and employers that you’re self. “I don’t touch my BlackBerry on Sundays
28-year-old advisor with Creative Planning program also includes field development, in more you know...” on page B10.) n join a team practice to get around it.” n client communication dedicated to competence and ethics and or Mondays,” he says. “That’s my time. And
Financial Group in Toronto. “At 36 months, which rookies engage in client meetings with Alim Dhanji, a 31-year-old CFP with Assante Keller assures his clients of his credibility While the new generation of advisors may professionalism.” I know that the rest of the time, I have to be
you’ll either start making pretty good money the assistance of an experienced advisor and n building a book of business Financial Management Ltd. in Vancouver, by pointing out that he works for a reputable be accustomed to communicating through Dhanji earned his CFP designation early working from when I wake up until I go to
or it’s just not going to happen — you’ll see learn how to apply the financial planning Early in your career, building a book de- spent his first five years in the industry work- firm, and that he works closely with an ex- text messages and emails, they must ensure in his career, and says it has enhanced his sleep.”
that this is not for you.” knowledge they’ve acquired. mands extensive networking and meeting as ing as an assistant to another advisor. This let perienced senior advisor. Clients typically re- they are using professional and appropriate image as a young advisor. He always makes When Shoemaker does have spare time,
How do new advisors not only survive Shoemaker attributes much of his success many people as possible, says Mark Halpern, Dhanji gain on-the-job experience while slow- spond very positively to such a conversation. forms of communication when dealing with clients aware that he has the designation, he enjoys sailing, kayaking, running and
those first few years, but thrive? There are in his career so far to the thorough training he a certified financial planner with two dec- ly building his own book of clients. “People understand,” he says, “because every- clients. This is an area commonly misman- and explains what it represents, in terms of swimming. And he practises muay Thai with
plenty of strategies that can help to build a has received. He encourages new advisors to ades of experience and owner of illness- “Rather than just trying to learn on the fly,” body’s been in your position at one point in aged by young advisors, says Evelyn Jacks, professionalism, ethical standards and con- a martial arts trainer.
long and successful career as an advisor. seek out training programs that include both PROTECTION.com Inc., in Markham, Ont. he says, “I worked with a successful financial time, no matter what field they’ve been in.” president of The Knowledge Bureau in tinuing education. In an industry that’s largely entrepreneur-
in-class and field development formats. “Those first 10 years or so, you just have planner who showed me really how to de- Many advisors argue that a wide gap in Winnipeg, a firm that offers professional-de- “It gives you a lot of credibility,” he says. ial by nature, Shoemaker believes a willing-
n finding the right firm to see the people,” he says. “See as many velop strong relationships with clients.” age need not be an issue. In fact, Shoemaker velopment programs for financial advisors. ness to work hard is a key factor of success
When getting started in the industry, it’s n finding a mentor people as you can.” For example, sitting in on client meetings finds that some clients prefer to work with “You need to understand what should be n time management for any young advisor.
important to find a firm that suits your ap- While most training programs equip stu- An effective starting point for recruiting with a seasoned advisor helped Dhanji learn an advisor who is younger, because they communicated on the phone and in an email, While recruiting clients, undergoing “You have to be driven,” he says, “and you
proach to doing business. Financial advisory dents with knowledge in investing and fi- clients is to make use of networks you how to carry himself in a professional man- want someone who will be around to pro- vs what should be conveyed in writing,” she training, finding a suitable mentor and en- have to be motivated to go out there and work
firms can vary significantly, in terms of their nancial planning, many young advisors en- have already established, says Mills. That ner and how to deal calmly with stressful vide advice in the long run. says. “There is a place for each medium.” gaging in ongoing education, time man- for yourself to get those opportunities.” IE