Journal of Financial Planning: October 2019
Rianka R. Dorsainvil, CFP®, is the founder and president of Your Greatest Contribution (YGC), a virtual, fee-only comprehensive financial planning firm. She hosts the 2050 TrailBlazers podcast, which addresses the lack of diversity in the planning profession by engaging leaders in conversation.
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As host of the 2050 TrailBlazers podcast, I get to speak with some of the most innovative and inspiring leaders in the financial planning profession. My recent conversation Lazetta Rainey Braxton, CFP®, indeed lived up to this expectation.
Braxton is founder and CEO of the fee-only planning firm Financial Fountains. She’s an advocate of financial literacy and diversity in the profession. The time she spends giving back to the profession is impressive. She serves as chair of the Association of African American Financial Advisors (AAAA), as well as a member of the CNBC Digital Financial Advisor Council, the CFP Board Center for Financial Planning Advisory Panel and Women’s Initiative Council, and the Foundation for Financial Planning board.
The following is an edited transcript of my August podcast episode where Braxton and I answered the questions that we both frequently receive about how to pursue a career in financial planning.
Tips for Career Changers
Dorsainvil: We get a lot of emails and messages on various social media platforms about what it’s like to be a financial planner, a career changer, and a person of color in this profession. Instead of having this conversation amongst ourselves, let’s lay it all out so this can be a resource for those who are entering the profession and for the profession to really meet people where they are.
Braxton: The question for career changers is how to make the switch successfully so that it honors the person’s strengths and they are able to translate that to a new profession. That can be a very daunting idea.
And for students who are hoping their first career will be as a financial planner, that can be daunting as well. So hopefully, this information will help give clarity about how to move forward and what to think about as you prepare for a successful career as a financial planner.
Dorsainvil: For career changers, you have to be able to fund your transition. What I mean by that is though you may be an expert in your current career, you are transitioning into a whole new field. More than likely you’re going to start at entry level, and with entry level comes entry-level compensation. Tell me your thoughts on that.
Braxton: The entry-level position should be your expectation. Oftentimes it could be at least $20,000, $30,000 difference if not more [than your current job]. So those are real figures to keep in mind.
Dorsainvil: Paraplanner or associate financial planner are different titles depending on what firm or organization you go to. But they are going to be the best foundation for you as a financial planner. When you’re starting out, you have to be very humble; you want to be a sponge.
Braxton: Appreciate the training and the apprenticeship, because that is a significant foundation for success—that and being trained by those who you want to emulate as you move through your career. Also, make sure if you’re a new entrant that you’re asking lots of questions because you may not find the right fit the first time you take a leap in getting experience.
Four Avenues to a Career
Dorsainvil: You mentioned you may not land in the right place the first time. I want to highlight that because not all firms and organizations are the same. For students trying to find their way in this profession, there are four avenues: the RIA route; the broker dealer route; the bank route; or hybrid. What route did you take?
Braxton: I initially went the investment management route to the bank investment management route to a wealth management firm and then started my own practice, a comprehensive financial planning firm. My previous firms did not have a robust financial planning model even though they addressed many of the areas of financial planning. So, I actually had to be a self-taught, comprehensive planner with a focus on being fee-only because my previous firms were fee-based. The training is ideal if you can work with a firm that does comprehensive financial planning because that’s where the profession is going; that’s what clients are demanding.
As an industry, it’s mostly assets under management. You still see product sales, too. And with the combination of those two, you have people calling themselves financial advisers, but they may not have a clue about financial planning. So, as you are figuring out what opportunities are available, you’re going to see more opportunities on the wirehouse side, because they are larger organizations and they need to build the pipeline, like, yesterday. If those opportunities are more prevalent than an RIA (which is not hiring at the same rate) it may work best for you to go that route.
Just make sure you’re aware of where the industry is going. See how that firm is addressing financial planning, how they’re integrating financial planning in a training program, and how they are measuring your success. There could be pressure just to get the AUM in the door, which is why it’s important to hold yourself accountable for making sure you get that financial planning skill set, because that’s going to be the transferable skill anywhere.
Dorsainvil: A lot of people in their mid-20s are saying they are being measured on how much AUM they can bring in the door, how many products they can sell, etc. And as a 25-year-old, that’s a lot of pressure. As a 25-year-old, your job should be to learn and not sell—that’s just my personal opinion.
If you come from an economic background that is not wealthy, or you don’t have access to a lot of wealthy family members or friends or network, you may not be successful in that type of model, which is not fair.
If I were put in that environment, I may not have succeeded. However, I was put in a position where the first three years of my role was to learn and support the senior advisers. I’ve never had to sell anything. That’s what we mean by fee-only. My job was not business development, my job was not bringing new clients in the door; it was to be a sponge and learn. If that’s not your world right now, but that’s where you want to be, just know that there are opportunities out there.
Braxton: What is your objective? Some people are very successful because they appreciate insurance and they may appreciate how annuities may fit in an overall retirement plan. Those are very specialized areas that are not comprehensive. If you want a comprehensive approach to how you serve your clients, [you need to experience] models that allow you to be measured on the full spectrum of delivery, beyond just products. That also includes other areas of financial planning, like estate planning and tax planning, and even in some cases, small business planning as well. It’s important to know how you’re wired, what’s important to you, and how you want to serve the clients you feel you’re aligned to.
The other piece of this is, we often hear that there is not any wealth in the black community. Rianka, you said you came from a modest background—so did I. And we know that we’re serving clients in a model that we’ve developed that is profitable, that meets clients where they are, and that’s helping them turn income into wealth. We know the industry wants just wealth and to not deal with the income.
There are innovative firms—like the two firms that Rianka and I are running—that really meet our clients where they are that are on the front of the innovation curve for our communities. This also includes what’s considered emerging wealth, younger generations, and even older generations—and with that confidence we’re serving those who already have wealth as well, because we are not waiting for some other firm to develop them before we’re ready to serve them.
Tips for Finding a Mentor
Dorsainvil: Mentoring is huge. While I want you to reach out to people, I have a few tips.
When you reach out to someone to pick their brain or ask them to be your mentor, the very first step is to be intentional about your request. Why this particular person? Be very thoughtful and do your due diligence—research articles that they have written, listen to podcasts they may have been on. If you reach out to someone like Lazetta or myself and ask, “So what has been your experience being a financial planner?” or “What has been your experience being a financial planner of color?” We have talked about this before—that is a resource that’s already there. Be thoughtful about what you’re asking.
Show the person that you have done your due diligence. I’m envisioning an email or LinkedIn message saying, “Hi Lazetta, I just want to say thank you for what you’re doing for the profession. I have read article X, Y, and Z, and this is what I learned from it. I’ve also listened to your podcast where you mentioned A, B, and C. And while I think these have great advice for my career, this is specifically what I am looking for and I haven’t found a resource for that. So I’m wondering, can I take one hour of your time to ask you questions one, two, and three? I understand that time is your currency and you may not have time. So if you can send this back in an email, it would be greatly appreciated.”
Lazetta, would you respond to that [kind of message]?
Braxton: Yes. Also, in terms of mentoring, be in environments where you can get to know other people. One of the places where we’ve invested is the Association of African American Financial Advisors (Quad A), or the Financial Planning Association, or NAPFA. Check those out and see why we are investing [time in them].
Be wise with who you’re asking and how frequent you are asking so you’re not overwhelming one or two people in this quest to be successful. Expand your network. Lots of people are available if you do the work and show up at these places.
On Being a Person of Color
Dorsainvil: Let’s chat specifically about people of color coming into this profession. One of the questions that I get all the time is, what is it like to be a person of color in this profession and am I at a disadvantage? What do you have to say about that?
Braxton: No, we’re not at a disadvantage at all. We have had to learn how to adjust and be competent—not only in our technical skill set but our emotional skill set, EQ, and cultural competency as well. And these are some success factors that just by default of being a person of color give us a competitive advantage that is not always celebrated.
The other part of this is that we’re typically often the only person of color on a particular team, office, or in the whole firm. You can sometimes forget that you bring so much value, because it’s an adjustment for those that you are working with who are now responsible for expanding their skill set, particularly with the cultural competency as we’re dealing with these changing demographics.
You have a transferable skill set that brings extreme value to an organization. This is also why having a good network and support system helps you to not forget this important and very salient point: you bring value.
Dorsainvil: What is your advice for those who may have experienced some discrimination in their firm or organization?
Braxton: We discussed earlier about having funds. If you intentionally want to get into the profession, or if you need to pivot while you’re in the profession, you need funds. Because sometimes it doesn’t always work out—not only because it’s just not a good fit because you want to do something else or serve people differently, but maybe because the culture is not ready for you.
We are still the minority in numbers, even though we do add value. As you are doing your due diligence about the firms where you want to share your value, if they say diversity and inclusion and belonging and equity is important to them, hold them to that. Figure out who is really carrying out that mission within your firm and align yourself with them.
Also realize you may be the only one leading that charge with no authority to lead that charge. So you have to be true to yourself in a way that feels right to you about how you want to be a culture add. But the culture may not be ready to move as quickly as you are. And that may be when you get the notion that it’s time for you to go, and for them to figure it out on their own.
Dorsainvil: I want to speak to the historically black colleges and universities. Right now, while we have over 200 CFP Board registered programs, there are fewer than five at HBCUs. Are there plans to expand in this sector?
Braxton: Yes. The Quad A Foundation, an independent entity that works closely with Quad A (AAAA), is working closely with five HBCUs to help them have a strong program to support the next generation of African American financial advisers. It’s wonderful that we’re able to make this commitment of resources and hopefully in the years to come, we’ll expand that to people of color at PWIs—predominantly white institutions—as well.
Dorsainvil: I went to a PWI. But before college, I went to a very diverse high school. When I got to college, I was culture shocked. It was the first time I was the only person of color in the room. It was the first time someone came up to me and touched my hair. It was the first time someone asked me, “What are you?” I went through a leadership program at Virginia Tech where we had very thought-provoking conversations. I felt like this experience prepared me for the profession.
There were so many different situations where I knew that I was different, that I didn’t come from the same background as them. I learned what it meant to be the only person of color in a room and still maintain my confidence when I raised my hand, when I spoke in front of the class as a student. But it took resources for me to remain that confident. I joined organizations, I joined groups, and my confidence grew.
Specifically for HBCU students—when you come into the profession, you don’t have that four years. As soon as you start your career in the financial planning world, because you are the only person of color in the room and you may be the only person of color at that conference, you may get culture shocked.
This is a call to action to the organizations who may have someone who’s the only person of color: they do need resources; they do need some sort of support system. I wouldn’t have made it through college if I didn’t have that resource group where I could go and just talk through things. Would you say that’s accurate?
Braxton: Yes. And so it is beautiful for those who have attended HBCUs to be able to be so sure of who you are, and in a protected space that values who you are. So with this transition is having the skill set to be able to engage a culture that may not be as comfortable with all that you bring as a person and really speaking to those who understand and can guide you so that you can avoid missteps without losing your identity.
Dorsainvil: I think this conversation can be an awesome resource for those who are reaching out to us. We are discussing this specifically for you. We want this to be a jumping off point for you to be able to find resources and people and know when you’re reaching out to people, what to ask and how to ask it. Know that there are organizations out there, different career paths you can take as a financial planner, and that we want you and your whole self.
Braxton: Yes. Because the profession needs you. Our communities need you. And so we’re waiting for you.
Access the full podcast episode at 2050trailblazers.com.