Industry This presentation is provided to you by Charles Schwab Advisor Services to increase your knowledge of career opportunities in a rewarding lucrative and growing segment of the financial services industry ID: 1029356
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1. A Career in the Registered Investment Advisor IndustryThis presentation is provided to you by Charles Schwab Advisor Services to increase your knowledge of career opportunities in a rewarding, lucrative, and growing segment of the financial services industry.Public information1
2. “For me, there cannot be a better career. I’m helping people, I’m well paid, and I love what I do.”—RIA firm owner of 25+ yearsExperiences expressed are no guarantee of future performance or success and may not be representative of your experience.3Public information
3. A professional financial advisory individual or firm that has a fiduciary responsibility to their clients.Registered Investment Advisor (RIA): 2Fiduciary responsibility is unique to RIAs and it requires them to always put their clients first.Public information
4. Benefits of Joining the RIA Community41. Make a difference in people’s lives2. Work- life balance3. Freedom and fulfillment1. Carve your career path2. Control your earnings3. Exercise analytical and social skillsPersonalProfessionalPublic informationWorking at an independent Registered Investment Advisor (RIA) firm can offer each of these benefits—and more. Yet it is an often overlooked opportunity in financial services.
5. RIAs Support Individual’s Lives¹ 2019 RIA Benchmarking Study, Charles Schwab, 2019.5RetirementDeath of a spouseUnemploymentSelling a businessBuying a new houseSaving for collegePublic informationServices provided:Financial planningBusiness planningTax planningEstate PlanningLifestyle management
6. 6Overview of the Industry6Public information
7. The RIA Industry is the Fastest-growing Segment within Financial Services$4.8 trillionin assets176% of RIA firms are hiring talent within the year³RIA’s asset market share will surpass Wirehouses by 2023²¹ The Cerulli Report- U.S. Advisor Metrics, Market Sizing, 2019.² The Cerulli Report- U.S. Advisor Metrics, Market Sizing, 2019.³ 2019 RIA Benchmarking Study, Compensation Report, Charles Schwab, 2019.7Public information
8. ¹ Source: Cerulli Report- U.S. Advisor Metrics, Projected Advisor Headcount, 2019. ² Traditional model = Banks and Warehouses'A Growing Demand for Employment in the RIA Industry8Public information
9. ¹ The Cerulli Report- U.S. Advisor Metrics, Advisor Demographics 2019. ² CFP® Professional Demographics, Certified Financial Planner Board of Standards, Inc, 2020.³ Racial Diversity in Financial Planning: Where we are and Where we must go, Certified Financial Planner Board of Standards, Inc, 2018.Demographics and OpportunitiesThe industry is aging¹:44%Almost half of advisors are 55 or olderOver a third of advisors are retiring in the 10 yearsLack of representation:36%Abundant opportunity for employment23% of CFP designated advisors are women²23%A need for diversityOnly 3.5 percent of CFP designated advisors are Black or Latino³3.5Public information9
10. Why Should You Join an RIA Firm?Experience a dynamic industry:“You get new clients every day with different problems that you get to help them solve. You get to see the direct impact on people’s lives.—Independent AdvisorTap into your entrepreneurial potential:“I’ve always wanted to have my own business. So by going independent, I created a business value, and I have an asset that I’ve worked so hard to create for the past 27 years.”—Independent AdvisorFeel the satisfaction of helping people reach their goals: “We foster close relationships with our clients as we build their confidence in their financial future. We believe that our clients trust that we have their best interests in mind.” —Independent AdvisorSentiments expressed above are based on Advisors’ opinions and are for illustrative purposes only.Public information10
11. 6Key ConsiderationsPublic information11
12. RIA Firms Come in All Shapes and SizesFirm structureRIA firms range in size from solo advisors to firms with 100+ employees.Small to medium-size firms tend to have two partners or individuals who own a share in the firm.As firms grow in size, RIAs tend to hire individuals for more specialized roles and functions¹ 2019 RIA Benchmarking Study, Charles Schwab, 2019. Account managementExecutive ManagementOperationsInvestmentsPublic information12Employees of RIAs can hold different roles
13. RIAs Serve a Variety of ClientsIndividuals—singles, couples, families, entrepreneursInstitutions—small and medium-size firms, 401(k) plans, pension funds Nonprofits and endowments—universities, charitable organizations, foundationsClients RIAs serve:Tailors strategy to the clients specific needsOffers a variety of different servicesMaintains a strong relationship with clientsHow RIAs serve clients:13Public information
14. Entry level position; learns about the financial advisory process and supports client relations Intermediate experience; manages midsize accounts and assists senior advisors Experienced advisor; delegates strategic management of large accounts and guides clients through key financial decision makingExpert advisor; in charge of large accounts and responsible for making key decisions for the firmIndependent Advisor Career PathDepending on the structure and culture of the RIA firm the career path or role titles may varyClient service associateClient account mangerSenior client account managerPartner ¹ 2019 RIA Benchmarking Study, Compensation Report, Charles Schwab, 2019.Public information14
15. Compensation ¹ 2019 RIA Benchmarking Study from Charles Schwab, Compensation Report, 2019.16Public information15
16. Next StepsDiscover your future: Find RIA firms near youMake connections with advisors in the industryAcquire desired skills and certificationsSeek out internship and full- time opportunities16
17. Thank youPublic information17
18. Public informationAppendix18
19. Required Licensing and CertificationsCertified Financial Planner™ (CFP®) Chartered Financial Analyst® (CFA)Certified Public Accountant ® (CPA)Personal Financial Specialist (PFS)Certified Investment Management Analyst® (CIMA®)Chartered Investment Counselor (CIC)Chartered Financial Consultant® (ChFC®)Required by most states for individuals who act as investment advisors and provide investment advice to clients130 questions plus 10 pre-test questions with a minimum passing score of 72%Topics covered:Economic factors and business informationInvestment vehicle characteristicsClient investment recommendations and strategiesLaws, regulations and guidelines, including prohibition on unethical business practicesOther potential registration requirements depending on the services provided:2Series 65 registration1Uniform Investment Adviser Law ExamNorth American Securities Administrators Association, https://www.nasaa.org/exams/study-guides/series-65-study-guide/. Obtaining one of these registrations may make you exempt from the Series 65 exam.19Public information
20. Get Involved and Look for OpportunitiesGet involved with industry organizationsThe Financial Planning Association: http://www.fpanet.org/FPA NexGen! This is a community for FPA members age 36 and under that focuses on the next generation of financial professionals: http://www.onefpa.org/community/nexgen/Pages/Welcome%20to%20the%20NexGen%20Community.aspxCertified Financial Planner (CFP) Board: http://www.cfp.net/Financial Women’s Association: http://fwa.org/Association of African American Financial Advisors: https://www.aaafainc.com/ National Association of Insurance and Financial Advisors: http:www.naifa.org/The National Association of Personal Financial Advisors: http://napfa.org/ Look for career opportunitiesFind independent advisors near you: https://www.findyourindependentadvisor.com/ CFP Board's career center http://www.cfp.net/career-center20Public information
21. Make an Informed DecisionRead Industry PublicationsFinancial Planning: http://www.financial-planning.com/Financial Advisor: http://www.fa-mag.com/ThinkAdvisor: http://www.thinkadvisor.com/InvestmentNews: http://www.investmentnews.com/Wealth Management: https://www.wealthmanagement.com/ Key search terms: “emotional intelligence” and “financial planning”For informational purposes only. Third party trademarks are the property of their respective owners and used with permission. Third party firms and their employees are not affiliated with or an employee of Schwab.Information included on this site is intended to be an overview and is subject to change. Experiences expressed by advisors may not be representative of the experience of other advisors and are not a guarantee of future success.(0820-0L62)21Public information
22. Public information22For informational purposes only. Third party trademarks are the property of their respective owners and used with permission. Third party firms and their employees are not affiliated with or an employee of Schwab.Information included on this site is intended to be an overview and is subject to change. Experiences expressed by advisors may not be representative of the experience of other advisors and are not a guarantee of future success. (0820-0L62)