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So You Think You Can.... Work in Wealth Management Flipbook PDF
So You Think You Can.... Work in Wealth Management
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So You Think You Can Work in Wealth Management? Helping the rich become richer….. but it’s not all about that.
An exclusive interview with Grace Walker, an associate director working in wealth management. What is wealth management? As the name suggests, wealth management is all about managing the financial assets of high-net-worth and ultra-high-net-worth individuals and families. The various aspects of tax planning, strategic planning, and insurance planning become too consuming for the busy day-to-day life of numerous wealthy individuals, and such individuals thus seek out and put their trust in the expertise of wealth managers for managing their personal assets. What is something those looking to go into wealth management should be aware of? Many people don’t seem to recognize and understand the two standards of financial care not only in the wealth management sector, but also the financial industry as a whole. Financial advisors are, in fact, held to two different forms of care: fiduciary and suitability. Advisors who are bound by the fiduciary standard strictly place the clients’ interest ahead of their own. The suitability standard is essentially a lax version of the fiduciary standard. The recommendations made to clients by those bound by the suitability standard must be “suitable” for the clients’ personal circumstances, but they don’t necessarily have to be in the clients’ best interest. As a consequence, those who work under suitability standards often face a conflict of interest. Once the difference between these two standards of care is thoroughly understood, it becomes more favorable to work under a company/firm that acts as a fiduciary at all times. Why did you decide to work in wealth management? Wealth management is a career that enables me to freely dwell in the excitement of financial markets alongside shaping the lives of people I work with. My clients relay to me their life stories, dreams, hopes, failures, and fears. With the choices I make to manage and grow their wealth, I have the power and potential to lead them down their best path in life. Being able to connect with such people truly inspires me and motivates me to continue with this line of work. In addition, the experience that comes with managing the wealth of others teaches me how to manage my own finances as well. What is a skill you acquired/developed from high school that transferred over to your career in wealth management? If there’s one thing people should know about wealth management, they should know that it’s a relationship business. Networking and interpersonal skills become crucial in such a client-oriented career. I developed most of these skills back in high school from interacting with all sorts of students I met at school competitions such as DECA/HOSA, as well as sports games and events. Interacting with all of these students really prepared me for consulting and communicating with my clients while working in wealth management. What are some post-secondary pathways to work towards securing a job in the wealth management sector? The basic foundation for a career in the financial service industry requires you to either have a degree in either business, economics, or a Master’s of Business Administration (MBA). Look to enroll in university/college programs that offer any of these degrees; the Rotman School of Management at UofT is where I got my MBA. There are also several licenses and certifications you can look to get to be ahead of the game for your job prospects. This includes the Series 7 exam which licenses the holder to sell all sorts of securities. It would also be helpful to obtain certification as a Chartered Financial Analyst (CFA).
Work Cited Fuhrmann, R. (2020, April 23). Suitability vs. Fiduciary Standards: What's the Difference? Retrieved from https://www.investopedia.com/articles/professionaleducation/11/suitability-fiduciary-standards.asp Lazaroff, P. (2017, June 6). Here's What New Graduates Should Know Before Entering Wealth Management. Retrieved from https://www.forbes.com/sites/peterlazaroff/2017/05/22/heres-what-new-graduates-should-know-before-enteri ng-wealth-management/#52845df47817 Lazaroff, P. (2019, December 9). The Importance of a Fiduciary Standard of Care. Retrieved from https://www.plancorp.com/blog/the-importance-of-a-fiduciary-standard-of-care Paul, P. (2017, March 14). 7 Reasons to Pursue a Career in Wealth Management. Retrieved from https://tapwage.com/article/3472/7-reasons-to-pursue-a-career-in-wealth-management Prince, R. A. (2016, March 28). What Is Wealth Management? Retrieved from https://www.forbes.com/sites/russalanprince/2014/05/16/what-is-wealth-management/#7929e49f133e Wealth Management Career. (n.d.). Retrieved from https://www.financialplannerworld.com/wealth-management/