Career Advice Needed: Transitioning from a Large Brokerage to an RIA
Hi everyone! I’m in my mid-20s and currently work at a large brokerage firm, earning a salary of $80k with an additional 1% revenue share as a Registered Client Service Associate (holding Series 7 & 66 licenses). I’m based in a high cost of living area, and while I enjoy my job, I’m not particularly attached to the city itself. I’m also pursuing my CFP and typically go into the office 4-5 days a week.
Recently, I received an offer from an RIA with $2.2 billion in assets under management. I would start as a Client Service Associate and have the opportunity to work towards my CFP while there. The offer includes a base salary of $75k in a more affordable area, along with the flexibility to work fully remotely or come into the office when I choose. The firm primarily services ultra-high-net-worth individuals and focuses on alternative investments. Additionally, there is a potential discretionary bonus of 3-5% annually and up to 5% in profit sharing, plus the firm covers 100% of health insurance costs.
I’m weighing the pros and cons of making this move. One concern is that I would lose my Series 7 license after five years and my Series 66 after two years. However, there’s a clear growth pathway to become a Para-Planner and then an Associate Advisor. I believe this new role could provide valuable experience, but I’m anxious about the pay cut and the risk of losing my credentials. I’d appreciate any advice or insights from those who have made a similar transition! Thanks in advance!
One response
Making a career move is always a significant decision, especially when it involves trade-offs like salary and licensing. Here are some points to consider in your situation:
Long-Term Goals: If your goal is to become a financial planner and you feel this RIA aligns better with that path, the experience you gain there could be invaluable. Working with UHNW clients and alternative investments may help build your expertise and network.
Cost of Living: Since the new position is in a lower cost-of-living area and offers remote work flexibility, it’s important to assess how this affects your overall compensation. A $75k salary in a HCOL area may stretch further in a lower cost area, so make sure to analyze this aspect carefully.
Licensing Concerns: While you’ll lose your Series 7 and Series 66 licenses at the RIA, consider how crucial these are for your future career aspirations. If you’re moving towards a planning role where the CFP is more valuable, losing those licenses might not be as detrimental. However, you should verify how licensing might play a role in the RIA’s structure and whether you might have the opportunity to obtain new licenses in the future.
Growth Opportunities: The RIA’s offer to support you in working towards your CFP and moving from a Para-Planner to Associate Advisor indicates a path for advancement. Make sure to ask about the timeline and the firm’s track record for promoting employees.
Compensation Structure: The potential for bonuses and profit sharing, along with fully covered health insurance, are considerable benefits that could offset the initial pay cut. Additionally, if you can prove your value quickly, you may find opportunities for pay increases.
Work-Life Balance: The ability to work remotely and the flexibility it brings can lead to improved work-life balance, which is increasingly valued.
Personal Preference: Since you mentioned not being particularly tied to the city you are in, think about how a change in environment (location and culture of the workplace) might impact your job satisfaction.
Networking and Professional Development: The RIA’s focus on alternative investing could also expand your skill set and contacts, which could be beneficial for your career in the long run.
Ultimately, weigh the immediate sacrifices against the long-term benefits. If the RIA offers a better growth trajectory and aligns with your career goals, it could be worth considering the move despite the lower starting salary.be sure to also reach out to mentors or colleagues in the field who can provide perspectives based on their own experiences. Good luck!