Life and Disability insurers formed financial planning’s roots. They typically have lots of offices, and often lead with insurance first and move to varying degrees into broader financial planning. Home office support of agents is growing but the outcome for most new hires is either lucrative or a failure.
Franchises and independent B/Ds present a hybrid of activities. Planners are usually independent contractors, often marketing their own brands. The brand recognition is lower. Benefits and mentorship are spotty.
Fee-only RIAs are the fastest growing of the models depicted according to Cerrulli. Some RIAs are largely money management shops and not planning firms. They often use a production-based model. Planning oriented RIAs usually offer new hires salaried positions to start with many presenting equity opportunities in time. A bona fide fiduciary standard of care applies.
This is the heart and soul of the financial planning profession and is largely comprised of small private firms. New hires typically have high flexibility and gain experience with a broad set of duties including building technical competence and counselling skills. The rigor of mentorship and training varies and is usually the most significant predictor of new hire satisfaction and success.
Tax RIAs often start with tax and move to financial planning, but business is conducted as an RIA.
Financial counseling/therapy typically puts hires in front of a different clientele than other channels. Clients are often trying to fix or prevent a crisis and need basic money management skills. Employers are often non-profits with tie-ins to certain populations like the military.
Government, academia and research organizations offer financial planning graduates opportunities in policy making, literacy and advocacy. As a growing field, there will be more opportunities for PhDs. Most professors in other fields can’t start a program from scratch but many of these new PhDs could get that chance.
Robos and fintech are a newer but rapidly growing group of employers. In addition to “cyborg” jobs for human planners, it is hard to produce, sell, implement or maintain good financial planning related software without a solid understanding of financial planning.
Many banks, credit unions, trust companies and discount brokerages are expanding to include some form of financial planning or related services. Some are face to face, others via call centers.
Product distribution refers mostly to employment opportunities with retirement plan companies and wholesalers. More and more larger retirement plans offer some sort of planning assistance.