Changing Career - Opinions?

[Norrissa]

I am currently an Accountant at the top of my earning potential with the company I work for now. I am making $60k/yr salary and considering a career change into insurance.

I take my Life, Health and Variable Annuities exam with the state this month and am confident I'll pass. Whether or not I pursue this career change, it was good to study these and learn more.

I realize I need experience to determine if the career change is one in which I'll enjoy or even succeed at and that I'll need to be a captive agent until I learn more. I figure I can always fall back to accounting again although not likely at the same wage if starting anew.

My question is regarding the risk of a solid $60k/yr salary in exchange for a commission based wage. Since you're the best at evaluating risk, what do you think?

 

[Josh]

The majority of agents fail miserably. It's very unlikely that you'll make anywhere near what you're currently making for some time, especially if you don't have a specific marketing plan.

What's prompting the change?

 

[Norrissa]

What's prompting the change?

I am 47 years old and at an earning ceiling without my CPA. I enjoy helping others a lot and felt that through my financial background I would be able to make wise suggestions as well as have an earning capacity that isn't capped. My fear is that I'd earn so much less to begin with that I'd be forced back into Accounting and then be unable to match my current wage considering that I've not got my CPA. I'm paid at my current position as if I do have it based on my outperforming those who do and having 10 years tenure. I also spend many 14 hour days at month end in order to close the books and while I'm no stranger to hard work or long days, I'd much rather be in control of it rather than have it a constant for the end of month.

Let's say I didn't fail at it (I'm very competitive by nature) and began as a captive agent, do you think I'd be taking more than a $10k pay cut annually to begin with?

 

[Josh]

Let's say I didn't fail at it (I'm very competitive by nature) and began as a captive agent, do you think I'd be taking more than a $10k pay cut annually to begin with?

It's extremely unlikely you'd make even half of what you're making.

 

[Norrissa]

Thanks for your replies, Josh. Now I'm considering a broker-from-home start while I work. Worst case is I could do nothing and have no loss.

 

[xrac]

What is stopping you from getting your COA?

 

[JimmyUt]

I have to agree with Josh. Depending on what line of business you choose to pursue, this venture could be costly. If you have the ability to learn and transition part time, I would suggest that. I do have a question for you, if you enjoy accounting, why not get your C.P.A.? Now please realize, I don't have any idea what that requires, but I would imagine with your experience and a C.P.A., you could earn the extra income you are looking for. Just my 2 cents.

 

[LGilmore]

One thing to consider is if you went the business route how much friction you would come up against from a business prospect's existing numbers guy?

I actually see a backgroun in accounting as a possible problem for you as I think most accountants would see you as competition and treat you as such. This actually could make the job harder rather than easier.

 

[Norrissa]

The CPA requirement is about $30k expense and 2 years of school which I'd be unable to do while working the hours I do now. You're correct I would then be able to earn more or at least be able to meet my current salary at a different employer where I'd not be at the ceiling of earnings potential. I'm just no longer happy with my current employer and had hoped to find a venue to leave which didn't require my CPA. I was really excited about this opportunity until these responses. I will still take the state exam though.

 

[JimmyUt]

The CPA requirement is about $30k expense and 2 years of school which I'd be unable to do while working the hours I do now. You're correct I would then be able to earn more or at least be able to meet my current salary at a different employer where I'd not be at the ceiling of earnings potential. I'm just no longer happy with my current employer and had hoped to find a venue to leave which didn't require my CPA. I was really excited about this opportunity until these responses. I will still take the state exam though.

I think you should still be excited by the opportunity because it can be and is great if you work hard and smart. Just make sure you have your eyes open to what might occur if you aren't prepared. We aren't here to stop you, but rather to help you make the right decision so you don't go backward.