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Mid-Career Shifts to Financial Advisory: Insights from Industry Experts
Switching careers mid-life can be sparked by curiosity, frustration, or a desire for a more fulfilling path. For some, it may mean trading monotony for a role with purpose and growth. For others, the pandemic prompted them to reevaluate their career goals more clearly, with many seeking work-life balance, flexibility, and making a meaningful impact.
According to Apollo Technical Engineered Talent Solutions, the average age at which an employee changes careers is 39, and over 50% of American employees are considering a career switch in 2024. Among these career changers, an increasing number are turning to financial advisory. This influx of new talent gives financial firms a unique opportunity to gain employees with valuable life experience and a renewed passion for a client-first, Fee-Only approach. We spoke with four financial planning experts who see this trend in their work every day to provide insights for those considering a career in financial planning.
Meet Our Experts
Caleb Brown CFP®, CEO & Co-Founder, New Planner Recruiting
Caleb Brown is a CERTIFIED FINANCIAL PLANNER™ professional, Kolbe Certified™ Consultant, and creator of the Financial Planning Association (FPA) Career Day program. He has mentored, hired, managed, and coached many career changers and college students seeking internships and full-time positions in financial planning and frequently speaks about hiring and successfully integrating new planners into financial planning firms.
Hannah Moore CFP®, Financial Planner, Guiding Wealth
Hannah Moore is a CERTIFIED FINANCIAL PLANNER™ professional, Certified Financial Transitionist™, and founder of Guiding Wealth and Amplified Planning, the financial planning education company that hosts The Externship every summer. She is recognized as one of the top experts in training and educating financial planners.
Daniel Kopp CFP®, Founder, Wise Stewardship Financial Planning
A widower, Air Force veteran, and host of the “Military to Financial Planner” podcast, Daniel Kopp’s firm offers Fee-Only financial planning and investment advice, focusing on helping young widows and widowers, service members, and their families stabilize their current financial situation and prioritize their next steps.
Alex Hopkin, AFC®, CFP®, Founder & CEO, Simply Paraplanner
Founder and CEO of Simply Paraplanner, a remote financial hiring service, Alex Hopkin is passionate about helping financial planning firms scale effectively and affordably and paving the way for new professionals to break into the industry in a non-traditional manner.
What Makes Financial Planning Appealing to Mid-Career Professionals?
Caleb Brown: Like many other areas, COVID-19 opened people’s eyes to seek a better quality of life and throw out some of the societal norms. So now everything, in terms of change, seems to be on the table where it once wasn’t. Plus, as people have gotten themselves out of debt, improved financial habits, navigated market fluctuations, and started building wealth, they are generally happier and want others to experience the same level of happiness, so they set out to help others with the journey.
Daniel Kopp: Speaking with hundreds of career changers over the past several years, many have shared having a bad experience with a portion of our industry and hoped there was a better way. For many, that journey led them to financial planning and the world of Fee-Only advice.
Additionally, the growing number of CFP® programs, fantastic online study options, and initiatives like DOD SkillBridge—which connects transitioning service members with real-world job experience—have helped make the path into the profession easier every year. Coupled with the incredible education benefits military members can use, many have already completed some CFP® requirements when they make that initial leap into a first job.
Hannah Moore: We have consistently found that, by far, the number one reason people are coming into financial planning is to help people. Many of the career changers coming to financial planning have seen or have experienced the power of financial planning and want to help spread that. Firms and organizations with a clear mission aligned with helping people and making people's lives better have the upper hand in talent.
Why Are Career Changes Important to the Future of the RIA Field?
Caleb Brown: For the profession to grow, we need to hire hundreds of thousands of planners over the next few decades, and career changers are a large part of this. They give financial planning firms a different option for a newer entrant versus a new college graduate. Even if career changers don’t have financial planning experience, they have life experience, which may accelerate their path to a client-facing role, which is what most firms are desperately seeking right now.
Hannah Moore: Financial planning has a talent shortage, and we need more people to enter this space. Career changers bring so much experience from their prior roles that will benefit firms and give them a competitive edge. They have the transferrable professional skills that will elevate a firm and are also changing careers because they align with their vision and passion. They have a larger vision and understand why financial planning is so important, which is incredibly valuable.
What Do Financial Advisory Firms Stand to Gain from Career Changers?
Alex Hopkin: Career changers make excellent candidates and should not be overlooked. At first glance, it may appear they lack experience but they often come with a wide breadth of transferable skills from their past profession. We have seen career changers from all areas, including teachers, mathematicians, professional athletes, marine biologists, and accountants, to name a few.
In addition to their professional skills, they often bring a depth of “life experience,” which makes them relatable to a firm’s clients and adaptable in a professional setting. Aside from transferable skills, the standout attribute of career changers is passion. They risk a likely pay cut and uncertainty, moving away from a successful career in another industry to take an entry-level job in the career of their dreams. Their passion is unmatched, and they are in it for the long term.
Daniel Kopp: A powerful benefit of these career changers is their life experience. Military experiences translate well into familiarity with regulations and compliance, attention to detail, interpersonal skills, and leadership, among other attributes.
How Can Career Changers Break into Financial Planning?
Caleb Brown: Those who have the most success join firms in an associate-level role and learn the business for a few years, then work their way up to a lead planner position within the firm or start their own firm.
Alex Hopkin: Some individuals take on a part-time paraplanning role to gain experience and dip their toes in the water, while others choose to study for the CFP® exam before making the full leap into the industry. This gives some financial stability during the transition.
Daniel Kopp: Service members within 180 days remaining in their service can consider DOD Skillbridge. The program connects them with industry partners for training, apprenticeships, or internships in high-demand fields like financial advisory with the potential for full-time employment once they’ve completed the program. It’s been valuable in providing foundational knowledge, determining if the field is a right fit, and helping ease service members into civilian careers.
What Advice Can You Offer Career Changers Interested in the Financial Planning Field?
Caleb Brown: Set realistic expectations in terms of the learning curve and income. If you take a pay cut, give it a few years to return to where you were. Join NAPFA and other professional organizations, attend meetings, network, and ask to take firm owners to coffee to learn more about their business.
Research firms in the area and hand-deliver your resume and written cover letter to each office. Create a video message to send as a follow-up discussing skill sets and how you think you can add value to the firm.
Alex Hopkin: Don’t be afraid of your lack of industry experience but highlight your transferable skills and how they set you apart. In your cover letter, discuss WHY you’re transitioning into financial planning.
Finally, network! Attend industry events. Reach out to financial planners in your area for an informational interview to learn more about what they do. Connect with fellow career changers and job seekers. Build your community. You don’t need to do this alone, and you never know where you might find your next job!
Daniel Kopp: My most consistent theme of advice to the career changers I speak with is related to their networking skills. Having a “thousand cups of coffee” allows career changers to see and hear the stories of varied parts of our profession, the technical and soft skills, the ability to learn the human elements, and grow their network of people who, even if not hiring themselves, might know someone who is.
I also encourage retiring or transitioning service members to leverage the DOD Skillbridge program if they qualify. It’s an excellent opportunity to gain valuable civilian work experience and enhance their marketability as they transition to a post-military career in financial advisory.
Hannah Moore: Join The Externship! You'll get to see if this is the career for you but you'll also learn the lingo and be able to connect with firms much better. Networking is consistently the best avenue to get a job. Explore other resources like CFP Board's job board and Schwab’s Talent Advantage.
How Career Changers Are Shaping the Financial Advisory Profession
The future of RIAs is marked by a growing need for fresh talent, especially from those passionate about helping others achieve financial success. For professionals considering a shift into financial planning, immersive study and strategic networking are essential to make informed decisions about how best to enter and thrive in the industry, leveraging their existing skills and experience. For firms, this new wave of career changers offers a wealth of diverse talents and perspectives that can significantly enrich their teams. Collaboration allows both firms and aspiring planners to align their values to extend their reach, enhance their capabilities, and ultimately help more people on their financial journeys.
Looking for ways to connect NAPFA members and career changers? Check out our Local Groups to see who is in your area.
image credit: Adobe Stock Images
