Financial Planning & Advising

Financial planners help individuals and families with financial planning - retirement planning, investment strategy, insurance needs, tax planning, estate planning, and wealth building.

Models include fee-only planning (charging for advice only), fee-based (fee plus commissions on products), or assets under management (percentage of invested assets, typically 1%).

Success requires financial expertise, trustworthiness, and ability to simplify complex concepts.

Licensing varies by services - CFP certification for comprehensive planning, Series 65 or 7 for investment advice, insurance licenses for insurance products.

Building practice as fee-only planner requires minimal startup capital beyond licensing, software (eMoney, MoneyGuidePro), insurance, and marketing totaling $5,000-15,000.

Pricing for comprehensive plans ranges $2,000-10,000 with ongoing advice at $150-400/hour or $200-500/month retainers.

AUM model charges 0.5-1.5% annually on invested assets.

Building client base happens through networking, referrals, content marketing educating on financial topics, seminars, and professional partnerships (CPAs, attorneys).

Revenue compounds as clients accumulate and assets grow.

Operating costs include licensing, E&O insurance, software, compliance, and continuing education.

Challenges include getting initial clients without track record, compliance requirements, and building enough AUM or clients for sufficient income.

Success requires genuine care for client outcomes, fiduciary approach, clear communication, and consistent client acquisition.