Supporting the next generation of financial planners

By James Lee

The financial planning profession is in good hands.

That was my main takeaway from my recent participation in the FPA NexGen Gathering event in Denver this August. Not only was there a vibrant energy that was palpable among the attendees, but these professionals understand and embrace the incredible potential of the profession and the impact we can collectively have on society.

Financial planning is a helping profession. And the attendees exemplified this core tenet in their passion to learn how to help their clients. Just as important, they shared the challenges and successes they experienced to help one another.

While walking the hallways, you could sense the camaraderie and the genuine curiosity expressed through the many discussions. Many in attendance and the broader FPA NexGen community are newer to the profession. Everyone took a different path early in their career journeys to get to where they are today — as the profession’s future.

It’s easy to hear the term “NexGen” and automatically conjure up images of students sitting in college financial planning classes or young interns assisting with client needs in your practice. But NexGen is more than that. It’s a movement to create a welcoming, supportive community for anyone new to the profession, whether a student, young professional or career changer. In fact, the leaders of FPA NexGen gathered earlier this year to clearly define and articulate the purpose of the community and what they endeavor to do — and be — for the profession.

The FPA NexGen purpose statement is:

Whether you’re a student, career changer, or early-career professional, FPA NexGen supports your career development while connecting you to an inclusive community of professionals and elevating your standing in financial planning.

The next generation of financial planners has so much to offer, and we — as more seasoned professionals — can have a direct, positive impact on elevating their standing within this growing and dynamic profession. By taking time to engage in mutually beneficial ways, we can share our knowledge and experiences. This helps next-generation professionals develop their competencies. At the same time, their unique perspectives and new ideas can offer insight into new approaches for your business to keep you relevant in this evolving landscape.

As you consider what you can do to engage and support next-generation financial planners, consider the following:

• Encourage involvement: If you know a new professional in your office or meet them at conferences and events, urge them to become more active. Please encourage them to join an association or attend events. Share with them the immense value of being active in the community.

• Be a mentor: Whether through formal mentorship programs or more informal outreach, spend time nurturing the growth and development of new professionals. Your guidance and encouragement will make an impact in their lives — and yours.

• Provide empowerment: If you employ next-generation professionals, ensure they are directly involved with more seasoned planners in your practice. The collaboration they’ll experience will help them learn valuable skills, develop critical problem-solving and spur creativity.

• Offer job shadowing: Provide opportunities for next-generation planners to shadow more experienced colleagues. The hands-on learning experiences and exposure to various client situations will offer critical insight that will serve them well in their work.

• Provide feedback: Whenever possible, help next-generation planners refine their skills by providing actionable and meaningful critiques. Using your experience and being sympathetic to the ebbs and flows they are experiencing early in their career will help them become more well-rounded financial planners.

The future of financial planning is bright, and those entering the profession today will play a critical role in advancing the profession tomorrow. By taking the necessary steps to support and encourage the next generation, we will position them, our clients and the profession for greater success in the years ahead.

James Lee, CFP, CRPC, AIF, is the 2023 president of the Financial Planning Association and president of Lee Investment Management in Saratoga Springs, N.Y. He may be contacted at james.lee@ innfeedback.com.