I Am No Longer A Financial Advisor

There have been many sleepless nights in the past few weeks as I have wrestled with a career choice. As of Friday, November 7th I am no longer a professional financial advisor. I have given up my license to advise retail investors and trade professionally on all securities.

I didn’t think it would be such an emotional decision, but working closely with individuals and families to help shape their finances now and in the future is quite a special thing. I’ve seen plans for babies and inheritances, and of course financial independance (I think they still call it ‘retirement’). I have had quite a close bond with many people who have trusted me with their private information and their dreams. So to make the decision to leave my current employer was not an easy one.

My departure is on the best of terms with my firm, and has nothing to do with the recent market action. I have hand picked the successor advisors who will take over for my clients in order to take their plans to fruition, and I have offered to remain as a sounding board for both the clients and the advisors in a non-official capacity – however I’ve made sure they are in good hands by keeping them educated (and pointing them to this blog!) :)

My commitment to the readers of this blog is to continue providing posts that I think people enjoy reading; indeed it will be business as usual. So keep the questions and comments rolling, and thanks for joining me on the journey so far…

Preet

Preet Banerjee
Preet Banerjee
...is an independent consultant to the financial services industry and a personal finance commentator. You can learn more about Preet at his personal website and you can click here to follow him on Twitter.
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Showing 23 comments
  • H

    Hi Preet,

    I know your decision must have been a difficult one. I hope you find joy in whatever you may end up doing. Best, and keep posting,

    H

  • Four Pillars

    Wow, big news! So what are you going to be doing with yourself? Are you Canada’s newest “youngest retiree”? :)

  • Jordan Clark

    Congratulations on the big change, I’m really looking forward to hearing more about the new position.

  • Susan

    All the best! Hope things go really well for you.

  • MillionDollarJourney

    Preet, that is huge news. I hope to hear updates about your decision and what you plan to do going forward.

  • Patrick

    Aw, just as I was about to recommend you to someone for a second opinion on their finances!

  • Jason

    Hi Preet, Great blog!

    Wow, this is weird timing for my request. I’m planning to move back to Canada in 2009 (been living abroad for a few years) and start a career as a financial advisor/planner. In the milliondollarjourney blog, you mentioned you may write an article about how to best start a career in this field.

    I realize you’ve just left the field, but could you share you knowledge with us?

    I’m 32, have a degree and am well versed in stocks and trading, as well as experienced with running a business and marketing.

    With the 5 big banks all having their own firms, the independents, as well as the insurance houses like SunFinancial, it’s kind of confusing where to begin.

    Another question I wonder about is it better to start in a branch then switch to the brokerage, start at a brokerage as an assistant, or start as an advisor at a brokerage and build the book up from nothing?

    Perhaps your thoughts on the pros and cons of each, as well as advice for someone just starting out like myself.

    Thanks in advance,
    Jason

  • How to Live in Canada

    That’s really huge news. I wish you all the best and looking forward to hear from your new career :)

  • Paresh

    Hi Preet,

    That is a big news. It is a big loss to Canadians who could count on an independent ‘for fee’ financial adviser. Good luck in whatever you plan to do next, I am sure you will be successful.

    Thanks,
    Paresh

  • Paul

    Hi,

    I am sure that if you are embarking on this change, it is well planned/thought out. As a subscriber to your blog, I have truly enjoyed reading your postings and insights.

    Good luck Preet and even though it does not sounds like this was your final posting, thank you.

    PS

  • Marianne O

    Thanks so much for all of the info you’ve shared so far on your site. I’m looking forward to continuing to learn from you.

    As for your career move — if anyone’s a prudent decision-maker, you seem to be! So whatever your plans, I have no doubt that you’re making a smart move. Congrats on starting down a new path.

    Thanks again
    Marianne

  • David

    I have always enjoyed your thoughts. It’s tough when these brutal markets claim another young and promising advisor. Sure you’ll land on your feet!

  • Sean

    Good luck in your new endeavours, Preet! Just make sure you keep up the blog :)

  • Rob

    I’m a fairly new subscriber to your blog and sincerely hope you do, indeed, keep up with the blogging. It’s an amazing reference, including the “lap of the blogs”. My best wishes to your in your future endeavours!

  • Thicken My Wallet

    Congrats on the move. Looking forward to hearing more.

  • Nerd Money

    Now you have everyone intrigued Preet! Best of luck in whatever path you journey on. I selfishly hope you’ll continue to update this blog because I like it so much.

  • Cdnsage

    Preet,
    I first discovered your educational blog after reading an article about you (Jonathon Chevreau)in the National Post. It immediately became must reading. Your truthful post(s)- especially your last one!! – combined with insightful industry commentary by John de Goey have led me to the exact same conclusion re: the state of the Finl Planning industry.

    I had toyed with shifting gears into Finl Planning but discovered there is far too much inertia against quickly shifting to a ‘fee based’ or alternative model where the non-HNW clients can truly benefit from prudent advice, sound coaching, balanced perspectives … without the inherent bias in the commission system. As you stated the delivery model is broken. Technology (internet, discount brokerages, blogs) has empowered the DIY and is aiding in improving the average knowledge level … for those to care to seek out information. However the sheer amount of ‘financial pornography’ (Chevreaus’s comment) in the mainstream media continues to confound those willing to go it alone. Never mind people whose eyes gloss over the neverending list of Mutual Funds … people like my Mom come to mind.

    Maximizing trailer fees, preserving AUM at all costs, ignoring the mounting evidence against the sound role of ETFs etc is NOT SOUND ADVICE. There is no incentive to change the system by those within the profession. Too much rides on it (think Saab, Audi etc) to hasten adoption of a more transparent model. The complete unwillingness to concisely disclose costs and ‘man up’ to this necessary dialogue underscores the rot in the system.

    Best wishes on the new endeavour … for all our sake I hope it is …

    1. Change agent;
    2. Straight talker;
    3. Champion of education;
    4. ‘Pain in the a$$’ to existing industry structure;
    5. All of the above

    Over and out,
    Adrian

    “Heads we win, tails you lose” should be the

  • anand

    Good luck on you new career path, I am sure you will be far more successful in future because you are a honest, sincere and intellectual person.

  • Truth

    Man up, you couldn’t face all your clients telling them to buy and hold and now they lost half their savings nearing retirement and now your running away.

    Good Riddance.

  • Preet

    @ Truth – I think I’ll stand behind the many posts on this blog that would indicate my true motivation. Ironic that you would tell someone to “man up” standing behind a veil of anonymity.

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