Journal of Financial Planning: February 2025
Richard Chen is the founder of Brightstar Law Group (https://brightstarlawgroup.com), a law firm serving the regulatory and corporate needs of investment advisers, including advising on investment adviser registration and compliance matters, firm ownership and employment matters, commercial agreements, mergers and sale transactions, succession planning, and private fund launches.
With a significant portion of experienced financial planners approaching retirement, firms (and the profession as a whole) must focus on attracting younger talent to sustain their growth and relevance. One of the most effective ways to meet this challenge is by establishing a robust internship program. These programs not only serve as a pipeline for new associates but also strengthen a firm’s presence within the community and position it as an employer of choice for rising professionals. This article highlights the benefits of internship programs for advisory firms, best practices for establishing an effective internship program, and common mistakes to avoid when operating an internship program.
Benefits of Internship Programs
First, internship programs are more than just an opportunity to bring in temporary help; they’re a strategic investment in the future of the firm. Younger professionals bring fresh perspectives, technological savviness, and a deep understanding of emerging client demographics. Clients increasingly include millennials and Gen Z, and having planners who understand these groups’ values and financial goals is invaluable.
Second, internships also represent a trial run for potential full-time associates. Firms can assess an intern’s skills, work ethic, and cultural fit over several months, creating a seamless transition if a full-time role becomes available. In fact, many successful internships culminate in job offers, making this a cost-effective and low-risk way to recruit.
Third, internship programs enhance the reputation of a firm. Being known as a company that invests in developing young professionals can attract both talent and clients. A firm that demonstrates a commitment to education and mentorship sends a clear message: it’s forward-thinking, growth-oriented, and deeply invested in the financial planning profession. Interns can serve as ambassadors for a firm when they return to school.
How to Establish an Effective Internship Program
Creating a successful internship program requires thoughtful planning and execution. One of the first steps is developing a clear program structure. Interns need to know what they’re signing up for. A well-defined program with specific roles, responsibilities, and learning objectives will attract serious candidates. Start by thinking about what skills the intern will develop, how the program will balance administrative tasks with substantive financial planning work, and whether there will be mentorship or shadowing opportunities. Transparency from the outset sets the tone for a professional and meaningful experience.
Second, a successful internship program requires a pipeline of potential interns, so recruitment efforts are vital. Building relationships with local universities and colleges is a powerful way to recruit interns. Reach out to career services offices, business schools, and finance departments to advertise your opportunities. Hosting career fairs, giving guest lectures, or leading workshops on financial planning topics can position your firm as a desirable destination for students.
Third, internships must be designed in an appealing fashion to attract quality candidates, including offering competitive compensation. While unpaid internships might have been the norm in the past, today’s candidates expect fair pay for their contributions. There are also certain laws that apply with respect to how interns must be compensated. Providing a stipend or hourly wage not only attracts top-tier talent but also shows that your firm values every team member—even those just starting out.
The quality of the work provided to interns also matters greatly. Interns want real-world experience, not just busy work. Let them participate in client meetings (with appropriate consent), assist in building financial plans, or use planning software. The more hands-on their experience, the more likely they are to view financial planning as a career worth pursuing. Pairing interns with seasoned planners can also create a mentorship dynamic that benefits both parties. Interns gain valuable insights into the profession, while senior staff members often find mentoring rewarding and rejuvenating. Regular one-on-one meetings can help interns feel supported and aligned with the firm’s mission.
Highlighting career development opportunities is another key to attracting top candidates. Be clear about potential pathways within your firm. Show how starting as an associate can lead to long-term growth, whether through professional development, industry certifications, or leadership roles. When interns see a future with your firm, they’re more motivated to perform at their best.
Common Mistakes in Operating an Internship Program
Operating an internship program isn’t without its challenges, and there are some common mistakes firms should avoid.
One of the biggest pitfalls is failing to define objectives. Without clear goals, an internship program can become disorganized and ineffective. Ambiguity in tasks or expectations leads to frustration for both the intern and the firm. Define what you hope to achieve with the program and communicate this to your team and candidates.
Another mistake is using interns exclusively for menial tasks. While interns should expect to handle some administrative work, this shouldn’t dominate their experience. If you focus only on busywork, you risk leaving interns disengaged and disillusioned about the profession. Balance operational tasks with meaningful projects that challenge their abilities.
Neglecting onboarding and training is another missed opportunity. Treating interns as temporary help without proper onboarding sets them up for confusion and limits their ability to contribute. A structured orientation program can help interns quickly acclimate to your firm’s culture, values, and processes. Ongoing training ensures they have the skills to succeed.
Another mistake is forgetting to solicit feedback from participants. An internship program should evolve based on the needs of both interns and the firm. Failing to ask for feedback means missing valuable insights. Conduct exit interviews or surveys to learn what worked, what didn’t, and how you can improve future programs.
Conclusion
When done well, internship programs create a win-win situation. For interns, they offer an invaluable opportunity to learn the ropes of financial planning and gain clarity about their career goals. For firms, they provide a steady pipeline of motivated and well-trained talent. Beyond immediate staffing needs, these programs contribute to the overall health of the financial planning profession by fostering the next generation of planners.