I observe the independent financial adviser leaving the office early with his golf clubs in tow. It’s 11am on a Friday and I’m assessing my career decisions. Again.
Since starting Furnley House in 2013, we have had a clear idea that the old-fashioned IFA, who does everything, is no more and the roles of mortgage adviser and wealth adviser should be treated separately.
I started my path as the sole mortgage adviser.
Pension and investment advisers have a more gradual sense of gratification — important, nonetheless
Although both roles’ skills are similar, the technical details, continuing professional development and experience required make it, in my opinion, impossible to do both well. Therefore, in 2018, I dropped mortgages completely to advise wealth clients, with the hope of a greater income and more free time with my young family.
I found there was little cross-pollination because the clients that needed true, ongoing wealth advice rarely had pressing or difficult mortgage needs.
However, there are definite benefits to housing both within the same firm: assisting family members of IFA clients, thus keeping those clients ‘sticky’; and generating extra revenue.
Prepare yourself to study and get out of your comfort zone
But I was known as ‘the mortgage guy’ and was constantly pulled back to help with unusual clients. I didn’t have a strong enough team and processes to replace me.
And setting up a pension plan simply isn’t as satisfying as helping somebody to buy a house. Every time I get a mortgage agreed, it is like scoring a goal. Succeeding with a particularly difficult case is like scoring a goal in a World Cup final. You could say that mortgage advisers are the Messis and Ronaldos of the finance profession.
Pension and investment advisers have a more gradual sense of gratification — important, nonetheless. I liken them to Peter Shilton or Declan Rice: steady but unspectacular.
Shadow an IFA to find out if you can see yourself in their shoes
Like most footballing kids, I’m happy to be the attacker and let the rest of our team do all the defending!
If you do want to break into the world of IFAs, I offer these steps:
• Ask yourself, ‘Why?’ And, ‘Is it the right time?’
• Shadow an IFA to find out if you can see yourself in their shoes.
As a mortgage adviser, with good processes and a strong team, there is no reason why you can’t have more free time and earn well
• Talk to someone who has made a similar transition.
• Talk to your existing firm. Is this something it can accommodate?
• Prepare yourself to study and get out of your comfort zone.
• Prepare to go cold tofu (my plant-based turkey alternative) on mortgage advice.
• Ensure you have a good infrastructure or partnership in place to still service mortgage enquiries, enabling you to focus on your new role.
The old-fashioned IFA, who does everything, is no more
However, the grass isn’t always greener. As a mortgage adviser, with good processes and a strong team, there is no reason why you can’t have more free time and earn well.
I’m off to join our IFA for some golf!
This article featured in the December 2022/January 2023 edition of MS.
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