Important tips for young financial advisors

According to a report by Cerulli Associates in 2014, nearly one-third of financial advisors are between 55 and 64 years old, indicating that as advisors withdraw from the industry, broker-dealers and custodians face the risk of asset loss. At the same time, data shows that these older consultants have been procrastinating in succession planning. Young financial consultants may soon meet the job seeker market because consultants are eager to strengthen their practices.

Here are some tips for young financial advisors, as they will enter the industry and seek maximum success.

Key points

  • Young financial advisors have many opportunities to start successful businesses and help their clients succeed.
  • Young professionals use more digital tools that can help them attract customers, such as robo-advisors.
  • Nevertheless, young consultants should not forget the education and interpersonal skills they need in order to make clients feel satisfied with the human touch.
  • For many years to come, please invest in your business as early as possible to achieve compound growth and allow risk opportunities to be realized.

Never stop learning

The global financial market is constantly evolving, which means that financial advisors must continue to learn to keep up with the times. For example, many recent economic studies support the idea of ​​passively investing in low-cost index exchange-traded funds (ETFs) and mutual funds because they may provide the best long-term returns, and new technologies continue to emerge that can help optimize client investment portfolios and Improve their long-term risk-adjusted returns.

In addition to research, financial advisors should also keep up with the latest regulatory trends to avoid any problems in the future. Financial advisors should also keep abreast of research and industry trends by subscribing to industry publications, attending conferences, and participating in other activities aimed at enhancing the customer’s value proposition. By keeping up with these changes, young financial advisors can ensure that they are best positioned for the future, while helping older employers adapt to new and upcoming trends.

Connect with your customers in person

For those seeking financial advice, there have never been more options, exchange-traded funds make self-service methods easier, and robo-advisors take care of the details. In many ways, financial advisors differentiate themselves by connecting with clients on a personal level in order to provide better value in the long run. Young financial advisors should not forget the importance of interpersonal relationships in an increasingly digital society.

The need for interpersonal relationships is not just a good feature of any practice. According to data from MyPrivateBanking Research, by the end of 2020, more than 4 trillion U.S. dollars will be managed by robo-advisors and automated investment platforms worldwide. Over time, young financial advisers will have to deal with these trends more than older advisers in the remaining years of the financial consulting business.

Financial advisors may wish to consider cooperating with robotic advisors to handle the automated aspects of financial planning, while they can control the overall situation and any emergencies that occur. By taking this approach, young consultants can best position themselves by focusing on areas where they can add value instead of trying to compete directly, which may bring dividends on the road in the future as the industry matures.

Invest in your career development

In terms of finance, financial advisors may be very familiar with the concept of compound interest, but the same principles apply to the time spent on professional growth. For example, young consultants should always read books and articles, take online training courses, volunteer in professional organizations, and obtain new education certificates over time in order to continue to create value for customers and employers.

In addition to building their own value, young consultants should give back to others as soon as possible and often. Mentoring young financial advisors or students is a great way to understand the basics, help others, and build strong relationships. Participating in government requests for policy information is another good way to give back to society in a way that promotes everyone’s best interests.

Bottom line

The aging financial consulting business will soon create many job opportunities for aspiring young consultants to find a place in the business. When the time is right, these young consultants can prepare for success by constantly learning, maintaining their personal style, and investing in themselves and others.


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