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When it comes to managing personal finances, some people require the services of a successful financial advisor to put a plan into action and monitor progress. Financial planning examines your income, assets, and investments to address weaknesses and set goals aimed to get you back on track. Whether you are looking to hire an advisor, or would like to become one, it is important to know what characteristics will make you successful. Below we have listed five qualities of successful financial advisors.
1. They Have a Reputation You Can Trust
A successful advisor should have a strong track record, background, and reputation built upon a foundation of trust. When dealing with personal finances and sensitive decisions, the client-advisor relationship should be built upon trust. An untrustworthy advisor can cause detrimental effects to your investments. Any potential advisor should be willing to answer questions regarding core values, payment plans, and level of expertise. An honest advisor will avoid all conflicts of interest, act with integrity, and protect your need above all else. Before hiring a consultant, experts suggest checking the Financial Industry Regulatory Authority website for any history of non-compliance.
2. Analytical Skills
Financial planning involves estate planning, managing investments, retirement plans, and taxes. For a potential advisor to be successful, they need to possess the ability to analyze a financial portfolio and complete a breakdown. Developing a financial portfolio is unique to each client, and requires different methods. A successful advisor has strong math skills and can guide clients towards sound financial decisions in stressful situations.
3. Works Well Under Stress
The best advisors anticipate and plan for the unexpected and have a plan in place for those situations. In the world of financial planning, sometimes clients experience illness, injury, loss of a job, or sudden death. When these things arise, customers are counting on their financial advisor to create a financial plan and communicate it to the appropriate family members. Although some situations are always unexpected, a successful advisor is prepared to protect their clients from unforeseen circumstances.
4. Accessibility
A financial professional helps clients understand risks and rewards, select investments, fund college educations, and many more important decisions. This is one of the most important professional relationships you can have, it is the person protecting your legacy and future. Now imagine entrusting decisions of this magnitude to an advisor who was unavailable for questions. It is important for financial planners to be available, and to return phone calls in a prompt manner.
5. Ethical Business Practice
In a recent research study, 38 percent of investors stated that having an advisor who would act in their best interest was the most important determinant factor. The financial industry refers to this as the fiduciary standard. This standard is federally regulated to ensure that investment advisors are acting in their client’s best interest. While everyone is held to the same federal regulations, there are still some dishonest people in the industry who will charge top dollar for risky financial advice. As a potential consultant, operating under a personal and professional set of ethics will set you apart from the competition. An ethical advisor should communicate clearly and give you a complete understanding of your financial situation. Clients should never feel pressured into making critical business decisions. An ethical planner will place the customer’s needs ahead of their own and work on a structured pay scale, rather than commission.
It is an exciting time to be a financial advisor, the job currently ranks fourth in best business jobs. According to the Bureau of Labor Statistics, employment growth for this position is projected to rise by 30 percent from 2014 to 2024. If you possess any of the qualities listed above and are good with money, this career might be for you.
Related Resource: Top 10 Best Online Master’s in Finance Degrees
