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ether
Greenhorns Joined: Dec/18/2014 Location: Columbia, SC Status: Offline Points: 28 |
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Posted: Dec/19/2014 at 1:26am |
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I don't know if this community can help me, but I'm interested in fee-only advising. I want to help lower and middle class individuals build financial security through basic financial literacy. My goal is to advise people on how to reduce their expenses, invest in low cost investment services [like Vanguard ETFs], and progress towards financial independence. I'm also interested in advising people on how to acquire a college education cheaply and help people escape crippling debt. I don't expect to make much or any money doing this, but I want to try! I have a few ideas about how to test my skills and see if I could actually turn this into a business:
1. Volunteer or work for an organization that focuses on promoting financial literacy [Do you all know any organization like this?] 2. Become a low level book keeper at H&R block. Do people's taxes and if they like my tax work, offer my financial planning skills 3. Contact other fee-only advisors and try to learn & mimic how they built their businesses 4. Hangout around predatory loan offices [like payday or title loan businesses] and offer a free hour consultation to the poor schmucks getting loans 5. Call local high school counselors and offer a free parent seminar on financing a college education Let me know if this might work, or if you think it's a waste of time & energy. Either way I appreciate the input!
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bagua
Member Joined: May/03/2011 Status: Offline Points: 268 |
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Ether,
Why? Towards what end? Bagua |
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Moraen
Admin Group Resident Sage Joined: Mar/09/2010 Status: Offline Points: 30786 |
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I come in peace. I didn’t bring artillery. But I’m pleading with you, with tears in my eyes: If you fuck with me, I’ll kill you all. - General James Mattis
Fiduciary as Fuck - iMo |
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ether
Greenhorns Joined: Dec/18/2014 Location: Columbia, SC Status: Offline Points: 28 |
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The end goal is to help people. If I can make money doing it, great! If not, I'll be fine! I feel that the people that could use a financial advisor the most, will never get one because they don't have enough assets.
Edited by ether - Dec/19/2014 at 1:07pm |
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ether
Greenhorns Joined: Dec/18/2014 Location: Columbia, SC Status: Offline Points: 28 |
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Moraen,
1. Woah! AFCPE is exactly the type of thing I was looking for! I never knew there were academics writing about financial counseling. 2. If I could charge people $20 for a one hour session, I would be ecstatic. Do you think that people who go to the block wouldn't pay for that kind of service? 3. Do fee only advisors go after wealthier clients because the middle class don't see a need for advisors? 4. Are there any organizations that attempt to council people that are getting payday loans? 5. Great! I think the focus on my talk will be on how to get a college education cheaply. Maybe talk about how the first two years of college can be skipped through AP exams, CLEP exams, or Community College. Then talk about the state and federal programs that help pay for school, like the American Opportunity Tax Credit or the Education Lottery. What do you think? Edited by ether - Dec/19/2014 at 1:04pm |
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bagua
Member Joined: May/03/2011 Status: Offline Points: 268 |
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Ether,
You won't make any money. The folks getting payday loans are not people that plan. They don't learn much from experience, and they generally can't envision the future beyond Tuesday. The value you could bring will not have any urgency or value attached to it. I don't know how you would get them to internalize and use what you are saying. I have a client that has worked at McDonalds her entire life. Raised a son, a HS graduate, college on academic scholarships. She paid off her $140,000 mortgage last month. Paid off. She called excited about having more money, now that she has no mortgage. She's only ever made McD money, now about $10/hr. She is an amazing person, and stands out because she is the only one of her kind I have ever met. Her restaurant would like to hire 10 more people. They had 6 hired, ready to come in for their first day of training. zero showed up. The training is on the clock. Six fuckers that got jobs at a company that will pay them, couldn't keep it together long enough to get paid. That's who you are talking about prospecting. Best of luck, and God Speed. When you get tired of banging your head into the wall, stop. It will feel great. Bagua |
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Mike Damone
Senior Member Joined: Mar/15/2010 Status: Offline Points: 6340 |
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Ether, take to heart what bagua wrote. I think your heart is in the right place and you have great intentions... but your target market (distressed individuals) don't want your help. Forget paying you $20 for advice. They won't take your help for free.
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ether
Greenhorns Joined: Dec/18/2014 Location: Columbia, SC Status: Offline Points: 28 |
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You're right, I can't advise the poorest of the poor, keep my sanity, or help them. Do you have any idea why your client was able to be so responsible and build her and her family up on a McDonalds pay?
Edited by ether - Dec/19/2014 at 1:19pm |
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ether
Greenhorns Joined: Dec/18/2014 Location: Columbia, SC Status: Offline Points: 28 |
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I do want to help, but I now agree that payday loans are a terrible place to start. What about my idea about the high schools or the H&R block. These are all people that have income and the ability to hold down jobs. I think I could help people there, do you agree?
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Moraen
Admin Group Resident Sage Joined: Mar/09/2010 Status: Offline Points: 30786 |
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Two things: First, I noticed that you don't really care about making money. I must assume either you have a spouse who makes a lot of money or you are independently wealthy. Either way, this is a hard business to do for little to no money - its' not worth it. Second, I once had an AFC designation and I was like you and wanted to help lower and middle income people. What I have found is that if I make a lot of money, I have more time to volunteer and do those things. Volunteer a weekend or a Friday once you have made it. I spend an entire four month period, one weekend every month working with low income veterans. You cannot do a one hour session with these folks. |
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I come in peace. I didn’t bring artillery. But I’m pleading with you, with tears in my eyes: If you fuck with me, I’ll kill you all. - General James Mattis
Fiduciary as Fuck - iMo |
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Raging-Rak
Greenhorns Joined: Sep/22/2014 Status: Offline Points: 41 |
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Go work for Dave Ramsey. You could help those people all day long.
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Someone once told me not to bite off more than I can chew. I told them I would rather choke on greatness than nibble on mediocrity.
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B24
Moderator Joined: Mar/09/2010 Status: Offline Points: 25749 |
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This is a great point. In this business, once you have a stable client base and you are making money, you can do whatever the hell you want. When you are scrounging for clients to make ends meat, it is too stressful to do pro-bono work.
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Mike Damone
Senior Member Joined: Mar/15/2010 Status: Offline Points: 6340 |
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You will probably make little to zero money, but you could call the local credit counselors and introduce yourself. Perhaps they can refer to you or allow you to do a seminar.
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ether
Greenhorns Joined: Dec/18/2014 Location: Columbia, SC Status: Offline Points: 28 |
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I like the idea. What would you say is the major difference between a credit counselor and a financial advisor? How do they financially sustain themselves?
Edited by ether - Dec/19/2014 at 1:49pm |
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ether
Greenhorns Joined: Dec/18/2014 Location: Columbia, SC Status: Offline Points: 28 |
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I'm single, work part-time, and passionate about personal finance. I have lots of spare time and I want to teach people skills. I have no idea what it's like to advise for a living, does it slowly drain you? Is that why it's not worth doing for little or no money? Would you say this work is a lot like a psychiatrist? But instead of dealing with behavioral & mental issues you are dealing with financial issues? |
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B24
Moderator Joined: Mar/09/2010 Status: Offline Points: 25749 |
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I think you probably need to finish up your degree and turn the legal drinking age before you start counseling people on money.
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Moraen
Admin Group Resident Sage Joined: Mar/09/2010 Status: Offline Points: 30786 |
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You are absolutely dealing with behavioral and mental issues. This job is great once you have clients trained. People who can be trained are usually people who are fairly intelligent - basically they are on the right tail of the income/wealth distribution. You are talking about dealing with the left-tail and middle. This area is NOT profitable and a model has not yet been invented to make it profitable to offer a consultative role. Further, those in the left-tail and middle are even harder to deal with. They have more issues, they cannot cover emergencies. They always want ton consume more. |
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I come in peace. I didn’t bring artillery. But I’m pleading with you, with tears in my eyes: If you fuck with me, I’ll kill you all. - General James Mattis
Fiduciary as Fuck - iMo |
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ether
Greenhorns Joined: Dec/18/2014 Location: Columbia, SC Status: Offline Points: 28 |
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I know, I'm just curious about the industry and like to talk about this kind of stuff! You know, young and thinking he can help the world type person.
Edited by ether - Dec/19/2014 at 1:52pm |
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Moraen
Admin Group Resident Sage Joined: Mar/09/2010 Status: Offline Points: 30786 |
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Financial counselors are typically pretty left-tailed on the income and wealth distribution too.
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I come in peace. I didn’t bring artillery. But I’m pleading with you, with tears in my eyes: If you fuck with me, I’ll kill you all. - General James Mattis
Fiduciary as Fuck - iMo |
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B24
Moderator Joined: Mar/09/2010 Status: Offline Points: 25749 |
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If you really want to help people with no money, do it en masse (ie. big seminars in a church or library). You will never have the time/money to help poor people with no money one-by-one, unless your service is funded somehow (state program, grant, etc.).
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