3 answers
harper
Student
Rock Hill, South Carolina
1
Question
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What are the specifics of working as a financial advisor?
What are the specifics of working as a financial advisor?
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3 answers
Jason Kwong
Financial Analyst
10
Answers
Clermont, Florida
Updated
Jason’s Answer
You ask a broad question, but one source of information about jobs and careers that I like to use is the Occupation Outlook Handbook put together by the US Bureau of Labor Statistics. Here is their page about being a personal financial advisor: https://www.bls.gov/ooh/business-and-financial/personal-financial-advisors.htm.
From the OOH, personal financial advisors:
Meet with clients to discuss their financial goals
Explain to potential clients the types of financial services they provide
Educate clients and answer questions about investment options and potential risks
Recommend investments to clients or select investments on their behalf
Help clients plan for specific circumstances, such as education or retirement
Monitor clients’ accounts and determine if changes are needed to improve financial performance or to accommodate life changes, such as getting married or having children
Research investment opportunities
From the OOH, personal financial advisors:
Meet with clients to discuss their financial goals
Explain to potential clients the types of financial services they provide
Educate clients and answer questions about investment options and potential risks
Recommend investments to clients or select investments on their behalf
Help clients plan for specific circumstances, such as education or retirement
Monitor clients’ accounts and determine if changes are needed to improve financial performance or to accommodate life changes, such as getting married or having children
Research investment opportunities
Audrey Emerson, MS, CFP®, BFA™
Financial Planner
4
Answers
Bellingham, Washington
Updated
Audrey’s Answer
Hi Harper!
It really depends on the type of firm you work for, but most advisors spend most of their time working directly with clients and preparing for client meetings. I've found that people skills are paramount and while the math and technical ability is important, client trust is the most important! Meeting planning and preparation can really range, for example one day I could be doing cash flow projections, reviewing insurance, reviewing investments, strategizing equity compensation, etc. Many advisors also manage investments but not all do. My favorite blog about financial planning/advising is called "Nerds Eye View" and you can read more here: https://www.kitces.com/start-here/
It really depends on the type of firm you work for, but most advisors spend most of their time working directly with clients and preparing for client meetings. I've found that people skills are paramount and while the math and technical ability is important, client trust is the most important! Meeting planning and preparation can really range, for example one day I could be doing cash flow projections, reviewing insurance, reviewing investments, strategizing equity compensation, etc. Many advisors also manage investments but not all do. My favorite blog about financial planning/advising is called "Nerds Eye View" and you can read more here: https://www.kitces.com/start-here/
James Sheffield
Financial Advisor
2
Answers
San Francisco, California
Updated
James’s Answer
Hi Harper,
What Jason and Audrey wrote above is accurate. I would like to add that in addition to the day-to-day activities they described, a key part of the job is finding people to help. Although many financial advisors work at firms where they rely on potential clients to simply call in, or respond to advertising, the most successful advisors develop their own client base by reaching out to people who might need their services. There is a fair amount of marketing involved. A person might be very good with numbers and investments, but if they are not comfortable talking with lots of people and offering their services, it might be challenging. Often, people don't realize how good they are at marketing until they actually do it. Therefore, don't let this important aspect of marketing put you off. When you develop confidence by learning a subject thoroughly, it is natural to want to share your knowledge. Being a financial advisor can be very rewarding because you can really make a positive difference in the lives of your clients, and they appreciate it.
What Jason and Audrey wrote above is accurate. I would like to add that in addition to the day-to-day activities they described, a key part of the job is finding people to help. Although many financial advisors work at firms where they rely on potential clients to simply call in, or respond to advertising, the most successful advisors develop their own client base by reaching out to people who might need their services. There is a fair amount of marketing involved. A person might be very good with numbers and investments, but if they are not comfortable talking with lots of people and offering their services, it might be challenging. Often, people don't realize how good they are at marketing until they actually do it. Therefore, don't let this important aspect of marketing put you off. When you develop confidence by learning a subject thoroughly, it is natural to want to share your knowledge. Being a financial advisor can be very rewarding because you can really make a positive difference in the lives of your clients, and they appreciate it.