Animal Spirits Podcast: "I Want To Be An Advisor, What Do I Do?"
Release Date: July 12, 2025
In this insightful episode of the Animal Spirits Podcast, hosted by Michael Batnik and Ben Carlson of The Compound, the hosts delve into the nuanced journey of aspiring financial advisors. Recorded live from the Morningstar Conference on Navy Pier, Michael and Ben navigate the evolving landscape of the wealth management industry, offering valuable advice to those looking to break into the field.
1. Setting the Stage: The Aspiring Advisor's Dilemma
The episode kicks off with Michael and Ben acknowledging a recurring theme in their interactions: individuals seeking guidance on transitioning into the financial advisory profession. Ben shares his familiarity with these inquiries, highlighting a common scenario where passionate enthusiasts want to turn their love for markets into a viable career.
Ben Carlson [00:58]: “Anytime I get this, I'm just going to forward them this link.”
2. The Mirage of Prop Trading and the Reality Check
A significant portion of the conversation centers around the misconceptions surrounding prop trading as a gateway into wealth management. The hosts discuss how many aspiring advisors believe that personal trading success can seamlessly translate into a professional advisory role.
Michael humorously points out the confusion between personal trading accounts and professional prop trading firms.
Michael Batnik [02:35]: “I just think it would be funny if an individual called their own trading account... like, my Robinhood account is a prop trading account.”
Ben elaborates on the impracticality of relying solely on trading profits for income, emphasizing the volatile nature of trading as a sustainable career.
Ben Carlson [03:10]: “Nobody is putting food on the table who is reliant solely on their profits from trading. Because once you do that, you introduce all sorts of different pressures.”
3. The Decline of Traditional Roles: CFA and Equity Research
The hosts discuss the diminishing opportunities in traditional finance roles, such as equity research and portfolio management, particularly due to advancements in Artificial Intelligence (AI).
Ben cites examples of industry leaders like Mark Rubenstein and Rex Salisbury who are replacing junior analyst roles with AI-driven tools, effectively reducing the need for human analysts.
Ben Carlson [04:47]: “Mark Rubenstein... is looking to hire people and AI has made that so that he doesn't have to.”
Michael questions the future relevance of the CFA designation in this changing landscape.
Michael Batnik [22:15]: “We both have our CFA designation... it helped me get my second job.”
4. Practical Advice for Aspiring Advisors
Transitioning from discussing industry challenges, Michael and Ben provide actionable strategies for those determined to enter wealth management despite the hurdles.
a. Starting at the Ground Level: Client Service Associate (CSA) Roles
Ben advises starting in operational roles such as Client Service Associates to gain foundational knowledge and industry experience. He emphasizes the importance of dedication and a willingness to learn.
Ben Carlson [10:03]: “You have aspirations to be the best that you can at this particular function... I'll give you a chance.”
b. Building Personal Connections and Persistence
Both hosts stress the importance of personal interactions and persistence. Michael recounts an encounter at a CFA event where a relentless approach led to initial success, underscoring the value of determination.
Michael Batnik [12:24]: “He said, I want to talk to you guys too.”
5. The Impact of AI on Wealth Management
A significant discussion revolves around AI's role in reshaping the wealth management industry. The hosts predict that while AI will continue to transform traditional roles, positions that require interpersonal skills and relationship building, such as sales, will remain resilient.
Ben Carlson [24:09]: “The Power Planner role... is disappearing because that role is being replaced by AI today.”
6. Navigating Industry Growth and Competition
Michael and Ben explore the competitive nature of the wealth management sector, noting that larger firms are likely to continue expanding due to their established infrastructures and resources. They highlight the challenge for smaller or newer firms to compete against industry giants like Vanguard, Fidelity, and Schwab.
Ben Carlson [19:02]: “We’re competing with Wirehouses... They have low cost solutions.”
7. Personal Stories: Risks and Rewards of Career Choices
The hosts share personal anecdotes about their career decisions, emphasizing the importance of taking calculated risks. Ben recounts his journey through the CFA program and the unexpected setbacks that ultimately led him to his current role.
Ben Carlson [23:58]: “The CFA is not for you. That ship sailed.”
8. Future Outlook: Consolidation and Growth
Concluding the episode, Michael and Ben discuss the anticipated consolidation within the wealth management industry. They foresee a period of mergers and acquisitions as firms strive to adapt to the rapidly changing market dynamics influenced by AI and shifting client expectations.
Ben Carlson [28:51]: “I suspect that this is not a flash in the pan. I think this is not a counter trend rally. I think that this is a regime shift.”
9. Final Thoughts: Embracing Change and Finding Your Niche
In their closing remarks, Michael and Ben encourage aspiring advisors to embrace change and carve out their unique niches within the industry. They highlight the importance of specialization and building a distinct value proposition to stand out in a crowded market.
Michael Batnik [20:35]: “Find your niche... it's not just the place down the street that you're willing to go anymore.”
Conclusion
This episode of the Animal Spirits Podcast offers a candid exploration of the challenges and opportunities within the wealth management industry. Michael Batnik and Ben Carlson provide pragmatic advice for those looking to enter the field, highlighting the importance of adaptability, continuous learning, and strategic career moves in an era dominated by technological advancements and shifting market structures.
Listeners gain valuable insights into the diminishing traditional roles, the impact of AI, and the essential steps to establish a successful career in financial advisory. The hosts' personal experiences and straightforward guidance make this episode a must-listen for anyone contemplating a future in wealth management.
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