Can I become a financial advisor at 40?
Yes, You Can! This is for all you career-switchers, and those considering a career change move into financial advisory services: Don't listen to the nay-sayers and the haters: You absolutely can become a successful financial advisor as a second career.
Transitioning to a career in financial advising at the age of 40 is a strategic move that holds numerous advantages. The journey showcases the importance of mindset, leveraging life experiences, and embracing the opportunities presented in the finance industry.
When it comes to finance, you're never too old to make a name for yourself as long as you have the right education, experience, and attitude. Here's everything you need to know about starting a finance career at or after 40 years old.
- Bachelor's degree or equivalent work-related experience with a track record of success.
- Financial services and/or sales experience.
- Financial services licensing or certification.
- Professional and/or military career progression.
Having a disqualifying criminal conviction
Some examples of crimes that might be disqualifying for a financial planner include: Theft. Fraud. Embezzlement.
While many experts say that you should have three times your salary saved by 40, the average U.S. household headed by those 44-49 has only $81,347 saved for retirement according to the Economic Policy Institute. All is not lost, however.
- Translator. ...
- Real estate agent. ...
- Personal trainer. ...
- Event planner. ...
- Occupational therapist assistant. ...
- Paralegal. 2022 median pay: $59,200 per year. ...
- Healthcare administrator. 2022 median pay: $104,830 per year. ...
- Human resources manager. 2022 median pay: $130,000 per year.
There are several advantages to starting a new career at 40 or older. You have the benefit of experience and wisdom that comes with age. You've likely gained valuable skills and knowledge throughout your previous career that can be transferable to a new field.
- Offer to Work (for Free) at a Search Fund.
- Start a Blog about Investing.
- Write Articles on Seeking Alpha and Value Investors Club.
- Start a Solo Small Business.
- Invest Your Own Money.
- Take Courses or get Certificates.
- Network Aggressively and Systematically.
- Conclusion.
How stressful is being a financial advisor? Being a financial advisor can be highly stressful due to the responsibility of managing clients' financial futures, market volatility, and the need to make crucial decisions under pressure. Stress levels can vary based on individual clients and market conditions.
Is it worth it to become a financial advisor?
Successful financial advisors offer valuable advice to their clients. In return, they get virtually unlimited earning potential, a flexible work schedule, and their choice of professional specializations.
Perhaps above all, financial advisors must have strong math skills so they can present accurate data to their clients.
Cons of Being a Financial Advisor
Working hours are often long, particularly in the early stages of growing an advisor business. Constant interaction with others can make this career less attractive for individuals who are introverted. Starting an advisor practice can require a sizable amount of capital.
Financial advisors in the United States typically make between $50,000 and $110,000 per year, with the average salary being around $75,000. However, this can vary based on experience, location, and the type of advisory services provided.
While managing a client's portfolio may be a very straightforward endeavor, managing their expectations can be much harder. Many clients have unrealistic expectations when it comes to investment returns and interest rates. For starters, clients are often not financial professionals.
Failure To Be A Value Add
Another reason why many financial advisors fail is that they don't provide value to their clients. Clients want to know that they are investing in something worthwhile, and if they feel like they are wasting their money, they won't bother returning.
The certified financial planner exam is likely the hardest test you'll ever take, Dorsainvil says. "Think of the hardest exam you took in college then times it by 10." Preparing to take the CFP exam begins months or even years before you actually sit to take the test.
2. The Statistics: 80-90% of financial advisors fail and close their firm within the first three years of business. This means only 10-20% of financial advisors are ultimately successful.
Many people wonder whether it's too late to start building wealth once they reach their 40s. The truth is, it's never too late to begin saving and taking steps toward financial security, no matter your age.
| Age by decade | Average net worth | Median net worth |
|---|---|---|
| 30s | $277,788 | $34,691 |
| 40s | $713,796 | $126,881 |
| 50s | $1,310,775 | $292,085 |
| 60s | $1,634,724 | $454,489 |
How much should I have in my 401k at 40?
You still have roughly 20 years before the conventional retirement age, so make the most of your savings opportunities. Fidelity says by age 40, aim to have a multiple of three times your salary saved up. That means if you're earning $75,000, your retirement account balance should be around $225,000 when you turn 40.
Being too old to start over is an 'outdated' concept, says career coach—how to navigate a professional reset. You're never too old to pivot in your career. The idea of pursuing something new can feel intimidating, especially after getting a college degree and spending years — decades, even — in a specific field.
Going back to school to attain your degree in your 40s has the potential to increase your salary and help you find career fulfillment. Rather than feel stuck in your current job, take the steps to better yourself and earn a degree that will qualify you for careers that align with your calling.
It's arguably never too late to change your career if you're armed with the right strategies. If you're in your 30s, 40s or 50s, don't despair.
You might be looking to switch careers to make more money, follow your passion, or try something new before you hit retirement age. To make a career change at 40, assess your transferable skills; talk to your network to get an idea of your options; and get your resume and cover letter up to date.
