When I changed my major to finance, I made it a point to explore as many career paths as possible. Like most young professionals, investment banking, trading, and a few others stood out as paths I thought I would like pursuing. Good money right out of school, big name firms to get on the resume early, and a wide range of exit opportunities all seemed attractive. But as I learned more about the industry, my perspective began to shift. The 90 hour work weeks, the intense and sometimes toxic culture, and the rapid changes coming with artificial intelligence make for a nasty concoction, despite the high salary and potential for rapid career progression.
Before beginning my internship this past summer, I had very little idea of what wealth management was. I knew most big financial institutions had a division dedicated to it and I knew financial advisors often did very well for themselves, but other than that, I was practically clueless. Throughout the internship, I discovered how great of a path this could potentially be for me. This is a path that is not just incredibly financially rewarding, but also one that allows you to operate your career in a way other paths in finance simply do not. Here are five reasons why you should seriously consider a career in wealth management.
Financial advisors will be in higher demand than ever before.
This isn’t just my opinion. There are numerous estimates that anywhere between 35-50% of all active financial advisors will be retiring by 2035. Simultaneously, the largest wealth transfer in American history will also be occurring throughout the coming years. According to Mckinsey, by 2034, demand and attrition could result in a shortage of about 100,000 advisors. In other words, advisors are retiring and are not currently being replaced at a sufficient rate. This is a gold mine of opportunity for current finance undergrads because although it takes time to progress to being an advisor, that timeline perfectly lines up for students graduating within the next few years.
Strong soft skills are heavily rewarded.
Wealth management doesn’t just involve managing people’s money, it also entails managing people’s lives. This is why being personable, being an effective communicator, and simply being a person people want support from is so crucial to success. The most impressive qualities advisors at my internship possessed included their ability to explain complex financial concepts to clients and keep calm in intense situations.]
AI will be integrated but people will still be needed.
We know AI is making its way into every aspect of work but currently, Wealth Management is one of the safer options as far as career choices go. Yes AI will be integrated into the process and will drastically change or even eliminate some tasks, but the human aspect will still be needed. As stated in the previous point, this industry is an industry based on trust and strong relationships, something that isn’t going away any time soon if ever. Clients call with questions about their portfolio, yes, but the relationships built between them and their advisor are so much deeper. This cannot be replicated by AI.
Great career progression
Although you would not begin your career as a financial advisor right away, an introductory role in wealth management is also a great starting point. A client service associate (CSA) is a role typically filled by recent college graduates which has a clear progression to more advanced roles including an advisor if that is the ultimate goal. Many firms also now operate in teams, where every person at each role supports the advisor(s) but also support each other. Many favor this structure for both supporting clients more efficiently and also because of the tighter work culture it helps foster between employees.
Everyone wants autonomy and this is a career that allows it.
There are few jobs that give you the support of a large global firm but also allow you to run your business the way you want. This is what makes wealth management so great, it has both of those things. In a way, the advisors are almost entrepreneurs, but they also have the resources of their firm to help support themselves. Being your own boss always appealed to me but the trade off is typically less structure and support for your professionally, this is not the case in wealth management which is why it is a path I am seriously considering. Although it takes years of hard work to become an advisor, this end result is more than worth it.
What to take away….
All in all, wealth management is a path that you should be familiar with and seriously think about if you’re a current finance undergrad. Although not as heavily promoted as some of the other areas you can break into right out of school, it is definitely one of the most rewarding paths long term in all dimensions.