CA researching transition into financial planning industry

Hi all

Would be interested to hear from those that are CA's and operate in the financial planning space or who know of people who do and have both disciplines.

I'm mid 20's with 4.5 years experience in the accounting industry, i'd need to do a graduate diploma in FP as i won't be able to get into the industry before the entry requirements change end of 2019.

My 'why' is that i'm passionate about seeing people set and achieve goals, and interested in budgeting and Cashflow management. I also see financial planning as more about looking forward whereas accounting is largely looking back on what has already happened (appreciate that the longer you work in the accy industry the more it becomes about advising people on the future, you gotta learn the basics first) in most cases it's more people orientated too which i think is my strength.

I'm unsure whether to leap into a lower level paraplanning type role or gain some accounting experience within a firm that has both accounting and financial planning under it's roof (i don't have any experience with aus tax as 90% of my work experience is in NZ) and then transition to a financial planning role overtime internally. I feel like gaining AUS tax experience could be helpful as that will be part of my point of difference that i'm trying to go for, keen for thoughts. I may take a couple of years to complete the grad dip also as i will need to stump up the money and time for it, neither of which will happen overnight...

Keen for thoughts or other ideas!

 

Do it - you are young and full drive. Now is the time to jump at opportunities as it will get harder the older you get and when you have kids. There are a lot of financial planners but similar to most industries there are a lot of rubbish ones so if you have the passion, knowledge and put clients needs in front your own then you will do well.

 

Hi there

I am a FP who was made to move into the industry as a result of the end of the accountants exemption. Now is a tough time for FP firms as a result of the royal commission and the intro of new education requirements which has seen an exit of planners and a devaluation of practice values up to 1/3. With any time like this its an opportunity, especially for younger types such as yourself.

You will need to find an AFSL after you have your RG146 - look at Kaplan for this.

Also you want to get ontop of what fee structure you are looking at as well as your point of difference.

For me, I do SMSFs - which is obviously topical and these days I turn away more clients than I actually set up which is an indication of the challenges in the SMSF advice industry currently.

Keep us posted with your progress mate and I wish you all the best.

Cheers Ivan

 

Being a great tax adviser (I assume you are a tax adviser) does not mean you will be a great FP. In my view you cant be best of both.

The sole exception is if you are a SMSF adviser and then it does assists to have RG146 WHILE IT EXISTS. SMSF advice is best by a dual qualified person or team due to the limits placed on advisers. Accountants have their hands tied otherwise

Some do both and some may balance it well but its rare and sometimes even a burden on their other role. But most I see arent great at one or the other and seek to supplement earnings by being too diversified. It would be like me also becoming a broker, a valuer etc. No thanks. I leave broking to experts and they leave tax to me. Dont under-estimate the horrendous compliance burdens of paraplanning and FP work. Its 10x that of tax advice work.