FPA Externship Review 2020
With COVID-19 running rampant and multitudes of companies freezing their hiring process and internship programs, I was stuck without options. Looking for virtual positions, I landed on sending emails to local fee-only financial planners looking to outsource some of their financial planning needs. Many of them, members of Financial Planning Association (FPA), referred me to the Virtual Externship program (Thanks to Paige Farrell at Endeavor Financial Planning as well as Sophia Bera at Gen Y Planning!).
The program runs through all eight of the primary topics of financial planning.
Investment Planning
Insurance and Risk Management Planning
Client Communication & Care
Cash Flow Planning
Student Loan Planning and College Planning
Retirement Planning
Tax Planning
Estate Planning
And the primary methodology was a video format of professionals in the industry discussing how each topic is related within their firm (and there were definite variations of how the planning is done from firm to firm). This was then accompanied by a homework assignment and live office hours with each speaker.
The Positives
To me, the most useful aspect was the live office hours. This is what truly made it feel like a personal experience to be in the program as it allowed us to get direct questions answered in an efficient way. With so many different professionals in the program, it was interesting to see the different perspectives taken on the same issues such as the lack of diversity in the industry. Moreover, we were able to hear some of the underlying stories (unedited) of different pathways that each person took to get to where they were.
Furthermore, I thoroughly enjoyed the community. What Hannah did was to invite "ambassadors" from the FPA Activate Facebook group who could help out to act as moderators to give answers to prospective questions on various topics ranging from general career advice to help on the use of financial technology software. This, again, gave a personal touch where we could directly relate to the other externs in the program, but also people ahead of us career-wise to hear the different perspectives and pool our knowledge together.
The third positive is the homework assignments that gave us technical knowledge and practice with what would otherwise be unattainable software for the entry-level or aspiring planner. Specifically, we worked a bit with Morningstar Advisor Workstation and eMoney, with a demo of TD Ameritrade's iRebal software. With eMoney, we were given an 11-hour certification program that allowed us to gain proficiency in the software that also gave us proof of mastery. I believe that this will significantly add an edge to my resume as I will immediately be able to start using the software in whatever position I get.
Some Improvement Areas
One of the things that I wished the program had as I worked through the modules was a practice full walkthrough of a financial planning process. Within the program, we did have a Financial Planning In Action video set, but it largely was synonymous with the live office hours from the other professionals. What I would have liked to see was a mock walkthrough of a client-planner relationship as I'd like to see how different (common) client questions are approached and how the planner structures each meeting. While I understand that this experience would change from firm to firm, I would have loved to see at least one angle spread across the 8-week program.
Another area I would have loved to see was a business development type week where we could go over the backend work of firm structure and different industry standards. For example, we could have been shown the various aspects of setting up a firm such that of compliance, legal business entities, and other core investments into a firm. This particularly would have been useful for career changers (which I am not) as they would have been more likely to gain by utilizing their previous career experience for implementation.
Overall
Overall, it was definitely a positive experience and I would recommend it to my peers if asked. And I believe it was well worth the $40 membership fee for FPA. As the goal was to develop FPA NextGen's outreach, I believe it was incredibly successful.
I appreciated the behind the scenes looks from each individual, small and large, and it really gave me a better perspective on the bright minds leading this industry. And of course, I thoroughly enjoyed every segment of "what advice do you have for the new planner?" at the end of each live office hours.
Some of my key takeaways (Note: These are not exact quotes, just from my jotted down notes, links to each person can be found below):
Failure is part of the process. Learn, pivot, and it'll all be okay. (Sophia Bera)
Little things add up. (Carl Richards)
Find a mentor. (Dr. Brad Klontz)
Define what you are really selling. (Keith Beverly)
Your path is going to be the best path for you. (Hannah Moore)
Simplicity leads to action. / Don't be afraid to get compensated for your value. (Luis Rosa)
Understand various perspectives. (Lauryn Williams)
Do it sooner. Go. Do it. Get it done. (Pam Horack)
Be conscious of who you want your client to be. / You have to truly love the career. (Louis Barajas)
I truly enjoyed hearing everyone's perspectives on various topics during this externship program. This externship has introduced me to so many different areas of financial planning: namely the coaching side (what I like to call the pre-advisor). It also gave me an introduction to different literature and industry-leading material that I could utilize to learn more. Namely, I'd like to mention the FPA Activate Facebook group, XYPN Facebook Group, and the You're a Financial Planner Now What podcast, all of which I have now become an active user of.
I'd like to give special thanks to Hannah Moore and her entire team that handled all the logistics and technology. I'd also like to give special thanks to Luis Rosa, who was willing to give me a one-on-one chat with him to discuss my goals and get some advice. And thank you to all speakers and community ambassadors! All speakers will be linked below (if I can find each link) by order in the externship.