Becoming a Financial Advisor

Things to Know Before Becoming a Financial Advisor

published on: 12.06.2021 last updated on: 13.07.2021

Becoming a financial advisor is a great career choice if you like to focus on numbers while helping people get their finances in order and organized. Starting out as a financial advisor can seem like a lot of work and maybe challenging at times, but also very rewarding as you see your clients meet their goals.

Before you jump in as a financial advisor, it is a good idea to get organized and make sure you are prepared. It is not as simple as just starting up your own business and hoping it all goes smoothly. Some of the things you should know before becoming a financial advisor include:

1. It’s More About the Clients Than the Money

It is uncommon for your clients to leave because of portfolio performance alone. Understanding this critical factor from the beginning will help you to have the right mindset in this career.

While risk-adjusted returns that align with your clients’ needs are important, that is not the only thing that matters. A good financial advisor will act as a fiduciary and needs to be committed to leading their clients along the right path for that specific client.

You must build trust, always placing the interest of your clients ahead of your own. Those who like to nurture relationships with people and work one on one to meet the financial goals of the client, rather than your own personal goals, will do the best.

2. Have Some Patience

Experience is not something that you will gain overnight. It takes time to build up your reputation, technical knowledge, and skill set. Few clients will trust their money management to someone who is brand new to the field and does not have their best interests at heart.

This does not mean it is hopeless to become a financial advisor. It simply means you need to have the patience to get things going. Your hard work will pay off, as long as you consistently keep working and learning along the way.

3.  Learn How to Be a Problem Solver

Problem SolverThrough the years, financial advice can get more complicated. This can make things confusing to most of your clients so they will come to you, looking for solutions to some of their problems.

In the past, workers in the United States could rely on retiree medical benefits and a pension income to help make them comfortable in later life. Now the burden of all retirement costs is falling on the worker. Many of these individuals have no idea how to predict their income needs in retirement or even how to get started with their retirement accounts.

This is why they turn to a financial advisor to help. They need you to be a problem solver, someone who can answer their questions, listen to their needs and concerns, and will help them to make a plan.

Your goal is to listen to the client and learn what matters to them most. This will vary from one client to the next. Once you know where their path will go financially, you can offer them solutions that will help them get there.

4. Find Your Niche and Focus There

Advisors who try to be a generalist will disappear pretty quickly. Those who get the most success in this field are the ones who can clearly articulate who they serve and how they can deliver on this promise. To make it simple, you need to give others a reason to seek you out for your services and then make this connection mutually beneficial.

There are many niches you can choose to work with,  you just need to pick one. Narrowing your focus will help you to get more expertise in that part, providing you with the skills that your clients are looking for to grow your business.

Choose the niche that you like the most. Whether you want to help with income growth, retirement income, stocks or bonds, or some other type of investment, you need to work with one niche. This will help you to really work for your clients.

5.  Never Stop Learning

One of the first steps that you need to take to become a financial advisor is to study up for the different insurance and securities licenses that you need. This is required before you even get started in your business.

Outside of the basic licensing requirements, you need to continue learning along the way. To be really competitive and to make sure that you are up to date on any new options that come up, you need to keep learning for years to come.

Consider pursuing advanced professional designations based on your interests and the niche you decide to pursue. Think about how you plan to get your business to change in the future as well when you think about some of the different learning you would like to do.

6. Invest in Technology

Invest in TechnologyTechnology was not a big thing when financial advising began. But it can do some wonders when it comes to providing you with new ways to solve problems for your clients. You need to embrace and invest in technology to help your business grow.

Not only should you invest in technology, but you must also make sure that your team will embrace a culture of innovation to make things easier. It is not only important to have the technology, but you also need to have technology that meets the needs of your clients. If it fails to do this, then you are using the wrong type of technology.

Becoming a Financial Advisor

Becoming a financial advisor is a great career option, especially if you like to help out others and explore different financial goals with them. There are a lot of numbers involved, but you also need to be open, available, and trustworthy to your clients as well. When you are ready to become a financial advisor, check out some of these important things to know ahead of time.

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Mashum Mollah is an entrepreneur, founder and CEO at Viacon, a digital marketing agency that drive visibility, engagement, and proven results. He blogs at

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