5 characteristics of a successful financial advisor

Various characteristics distinguish good financial advisors from bad, successful and unsuccessful financial advisors. Whether you want to become a financial adviser or just need to hire one to help you with financial planning, here are the five characteristics that most successful financial advisers have that you need to keep in mind.

Key points

  • Successful financial advisors have a large number of client business and performance and service records.
  • Acquiring customers and keeping them in touch with you — and recommending you — means being professional and putting your customers first.
  • At the same time, you need to have an in-depth understanding of the market, analytical skills and training, and a passion for finance.

Passion for financial planning and wealth management

A successful financial advisor is someone who has absolute passion for this subject. This is important because standards, laws, methods, and products in the financial and investment fields are constantly evolving.

When a financial consultant is passionate about a topic, he naturally tends to learn more about the industry every day. Those who do not have this kind of enthusiasm always lag behind and find it difficult to keep up with the pace of industry development. As a financial advisor, this alone may be the difference between success and failure. A good question to ask financial advisors in every conversation is: “What’s new in this industry?”

In-depth analysis capabilities

A complete and thorough financial plan involves many aspects. Cash flow planning, retirement planning, investment management, insurance planning, estate planning, and tax planning are several key areas where a competent financial advisor can help clients. In-depth analytical skills in all these areas are essential, but the investment part may be the most important.

Successful financial advisors know that the relationship between risk and return drives almost every aspect of financial planning. It is critical to structure the investment portfolio in the right way and be able to redistribute assets over time and objectives. Financial advisors need to be able to analyze and plan investment portfolios in the context of various indicators, such as standard deviation, beta, strategic asset allocation, tactical asset allocation, and drawdown.

Professional sales skills

This is a key requirement for a successful financial advisor. Financial advisers must develop their business in order to flourish. Being able to sell their services throughout the scope of financial planning, from investment management to estate planning, is essential to the success of financial advisors. It is true that the sale of services or products should not be solely for sale. The service or product must really help the customer.

However, sales skills are still necessary. Financial consultants must be able to communicate problems or gaps in their financial plans to clients, correctly communicate solutions, and as the last step, ask clients or potential clients about their business. A financial consultant who can’t muster the courage to ask about business will undoubtedly find nothing. With this in mind, the next feature is crucial.

The belief that interests must be aligned

A successful financial adviser is a person who puts the interests of his clients first and his own interests second. The consultant must believe that the economic interests of both parties should be consistent, otherwise a harmful relationship may occur. It is unnecessary and unethical to sell products that customers do not need, such as irrelevant insurance policies or insurance policies with excessive coverage.

Certain investment products are also suitable for this category, such as mutual funds with high sales loads, because there are countless comparable and better mutual funds without such loads.

In addition, it is not a good practice to charge higher investment management fees than necessary. A successful financial adviser should not charge a 2% fee for the assets under management, while a 0.5% fee is usually charged for the same service. Successful financial advisors will help people and get fair compensation; they will not spend their clients’ hard-earned money.


Accurately discovering the needs of clients in all aspects of financial planning is similar to detective work. Small details must be found and pieced together, and comprehensive solutions to big problems must be created and communicated. Successful financial advisors are those who love this process and thrive on challenges.


READ ALSO:   The best strategy to attract high-net-worth clients
Share your love