3 Common Challenges Financial Advisors Face Today
Putting it simply, being a financial advisor is HARD. If you're looking for an easy career where you can just sit back and coast by, forget about it. ... While one of the best traits you can have as a financial advisor is the ability to learn new things, many firms are steering advisors in the wrong direction.
High Stress Industry
Financial advisors can experience a great deal of stress when starting this career. ... Financial advisors are constantly managing the emotions of their clients based on downturns in the market, and this can lead to a high level of stress over time.
Employment of personal financial advisors is projected to grow 4 percent from 2019 to 2029, about as fast as the average for all occupations. ... Therefore, individuals must save and invest for their own retirement, increasing the demand for personal financial advisors.
Key Takeaways. Nobody said being a financial advisor is easy workâbut many of the challenges facing advisors have little to do with finances or investment choices. Much of the challenges involve maintaining relationships with clients and managing their expectations.
Work Schedule
Most financial advisors work at least 40 hours per week. They often go to meetings on evenings and weekends to meet with clients.
Lack of Process
Process, process, process for everything. This is the number one reasons financial advisors fail! They become REACTIVE instead of PROACTIVE in their daily routine.
However, they still have a couple of flaws: They can't answer the question "why this fund over that fund" They typically can't build an asset allocation around all your accounts (such as your employer 401k, which could be your biggest investment) They have fees on top of the investment choices as well.
But if you're neglecting your finances, it's likely worth it to hire a wealth advisor. Time is money, and there's a cost to delaying good financial decisions or prolonging poor ones, like keeping too much cash or putting off doing an estate plan.
There are three main ways financial advisors make money: Client fees, usually charged either on an hourly basis or as a percentage of client assets under management. Commissions for certain financial transactions, such as the sale of insurance products or the buying and selling of securities.
Working as a financial advisor can be an extremely lucrative career. According to the Bureau of Labor Statistics, personal financial advisors earned a mean annual salary of $90,820 in 2012. ... After training, new financial advisors go on to build their own base of clients.
"But a friend or family member isn't just going to call based on the referral. They're going to check out an advisor's website, social media and any content they've created." ... Whether you love it or hate it, leveraging social media is one of the most effective financial advisor prospecting ideas.
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