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Success as a Financial Advisor For Dummies
A must-have reference for financial advisors
In step-by-step detail, Success as a Financial Advisor For Dummies covers how a current or would-be financial advisor can maximize their professional success through a series of behaviors, activities, and specific client-centric value propositions. In a time when federal regulators are changing the landscape on the standard of care that financial services clients should expect from their advisors, this book affords professionals insight on how they can be evolving their practices to align with the regulatory and technological trends currently underway.
Inside, you’ll find out how a financial advisor can be a true fiduciary, how to compete against the growing field of robo-advisors, and how the passive investing trend is actually all about being an active investor. Additionally, you’ll discover time-tested advice on building and focusing on client relationships, having a top advisor mindset, and much more.
Master the seven core competencies Attract and win new business Pick the right clients Benchmark your performance Start your own firm Brimming with practical expert advice, Success as a Financial Advisor For Dummies is a priceless success tool for any wannabe or experienced financial advisor.
In step-by-step detail, Success as a Financial Advisor For Dummies covers how a current or would-be financial advisor can maximize their professional success through a series of behaviors, activities, and specific client-centric value propositions. In a time when federal regulators are changing the landscape on the standard of care that financial services clients should expect from their advisors, this book affords professionals insight on how they can be evolving their practices to align with the regulatory and technological trends currently underway.
Inside, you’ll find out how a financial advisor can be a true fiduciary, how to compete against the growing field of robo-advisors, and how the passive investing trend is actually all about being an active investor. Additionally, you’ll discover time-tested advice on building and focusing on client relationships, having a top advisor mindset, and much more.
Master the seven core competencies Attract and win new business Pick the right clients Benchmark your performance Start your own firm Brimming with practical expert advice, Success as a Financial Advisor For Dummies is a priceless success tool for any wannabe or experienced financial advisor.
- GenresFinance
361 pages, Kindle Edition
Published November 13, 2018
About the author
Ivan M. Illán
3 books4 followersIvan Illán holds degrees in finance and philosophy from Boston College and holds the Certified Fund Specialist (CFS®) designation from the Institute of Business & Finance, and maintains membership in the CFA Institute. He is the founder of an independent advisory practice that serves high net worth families, and he lives in Los Angeles and New York.
You can connect via Facebook or Twitter.
https://twitter.com/fireyourFA
https://www.facebook.com/How-to-Hire-...
You can connect via Facebook or Twitter.
https://twitter.com/fireyourFA
https://www.facebook.com/How-to-Hire-...
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Displaying 1 - 1 of 1 review
September 25, 2020
Comprehensively explains how to become a financial advisor and how to grow in that career or business. I appreciate the author's concern for the best interests of clients; his advice is framed by that objective. It's clear the author is an expert with a lot of experience.
Notes
Part 1: Getting Started as a Financial Advisor
You must love being with and talking to people all day, every day.
To succeed as an introvert, you must team up with extroverts.
You need nerves of steel and the ability to talk people off ledges.
Cons of working in firm
• Regular office hours
• Activities (including sales performance) monitored and assessed
• Clients belong to firm
• May be pressured to recommend products that aren't in clients' best interests
Best marketing is showing your specialized knowledge or perspective.
Personality traits
• Like to teach
• Patient and supportive
• Willing to advocate for clients
Generally, employees earn least, independent financial advisor broker/dealers earn next most, independent RIAs earn most.
Employees can work for full-service brokerage is (wirehouses), banks, regional broker/dealers, or insurance company broker/dealers.
NAPFA is leading association of fee-only advisers. Members must hold CFP and can't sell any products.
Fee-only advisor advisers can charge these fees:
• % of assets under management (AUM) or % of household net worth
• Flat retainer
• Hourly rate
• Per task or project
Author recommends charging fee for planning and advising, and charging commission for products.
When considering an employer, ask how firm managers get paid, and see if it aligns with clients' best interests.
Only start at a wirehouse if you don't want to someday be self-employed; otherwise, start as associate or intern at independent broker/dealer or RIA.
Part 2: Mastering Core Competencies
Top core competencies
• Asset (investment) management
• Liability (risk) management
• Budgeting (household or business focus)
• Estate planning
• Tax management
• Behavioral finance
Formal education and certifications not necessary, but helpful.
Most certifications require working in field for several years, and at least 30 CE hours every two years.
CFA Institute is gold standard in developing pros in investment management.
CFP Board is gold standard in developing pros in financial planning.
CFP requires 4,000-6,000 hours of experience.
Take FINRA exams series 6, 7, 63, 65, 66 (combo of 63 and 65).
Part 3: Providing Superior, Personalized Service
4 A's of Due Diligence
• Assessment: ask questions about client's financial goals
• Audit: collect details on client's finances and current financial products
• Action: close gap between what client has and what client needs
• Alignment: monitor financial situation to maintain alignment
Part 4: Building Your Clientele
Ways to get clients
• Website
• Social media
• Directories
• Interest-based activities (hobbies, sports, etc.)
• Be involved in charities
• Serve on boards
• Ally with attorneys, CPAs, etc.
• Client referrals
Part 5: Running Your Practice as a Business
Financial advisor roles
Minder (administration)
• Responsibilities: plan, delegate, schedule, allocate resources, oversee, do paperwork
• Attributes: organized, detail-oriented, patient, cordial, interpersonal, good communicator
• May not work closely with clients; may lead and mentor staff
Finder (business development)
• Responsibilities: find clients, identify opportunities to add value to clients, identify market segments, help adjust firms value proposition
• Attributes: interpersonal, good communicator, enjoy interacting with clients
Grinder (client services)
• Responsibilities: deliver client service that exceeds expectations, establish long-term client relationships, research, analyze, illustrate, do paperwork
• Great for new college grads and those who prefer not to interact with people
Business building activities
• Schedule client review meetings (quarterly at start of career, once or twice yearly after)
• Record names of friends and family your clients mention, and later ask client if they'd be good clients
• Sponsor a charitable event yearly
• Have meals with best clients
• Attend every party you're invited to
• Welcome all prospects; refer those who aren't a fit
• Stop selling and start telling stories
Notes
Part 1: Getting Started as a Financial Advisor
You must love being with and talking to people all day, every day.
To succeed as an introvert, you must team up with extroverts.
You need nerves of steel and the ability to talk people off ledges.
Cons of working in firm
• Regular office hours
• Activities (including sales performance) monitored and assessed
• Clients belong to firm
• May be pressured to recommend products that aren't in clients' best interests
Best marketing is showing your specialized knowledge or perspective.
Personality traits
• Like to teach
• Patient and supportive
• Willing to advocate for clients
Generally, employees earn least, independent financial advisor broker/dealers earn next most, independent RIAs earn most.
Employees can work for full-service brokerage is (wirehouses), banks, regional broker/dealers, or insurance company broker/dealers.
NAPFA is leading association of fee-only advisers. Members must hold CFP and can't sell any products.
Fee-only advisor advisers can charge these fees:
• % of assets under management (AUM) or % of household net worth
• Flat retainer
• Hourly rate
• Per task or project
Author recommends charging fee for planning and advising, and charging commission for products.
When considering an employer, ask how firm managers get paid, and see if it aligns with clients' best interests.
Only start at a wirehouse if you don't want to someday be self-employed; otherwise, start as associate or intern at independent broker/dealer or RIA.
Part 2: Mastering Core Competencies
Top core competencies
• Asset (investment) management
• Liability (risk) management
• Budgeting (household or business focus)
• Estate planning
• Tax management
• Behavioral finance
Formal education and certifications not necessary, but helpful.
Most certifications require working in field for several years, and at least 30 CE hours every two years.
CFA Institute is gold standard in developing pros in investment management.
CFP Board is gold standard in developing pros in financial planning.
CFP requires 4,000-6,000 hours of experience.
Take FINRA exams series 6, 7, 63, 65, 66 (combo of 63 and 65).
Part 3: Providing Superior, Personalized Service
4 A's of Due Diligence
• Assessment: ask questions about client's financial goals
• Audit: collect details on client's finances and current financial products
• Action: close gap between what client has and what client needs
• Alignment: monitor financial situation to maintain alignment
Part 4: Building Your Clientele
Ways to get clients
• Website
• Social media
• Directories
• Interest-based activities (hobbies, sports, etc.)
• Be involved in charities
• Serve on boards
• Ally with attorneys, CPAs, etc.
• Client referrals
Part 5: Running Your Practice as a Business
Financial advisor roles
Minder (administration)
• Responsibilities: plan, delegate, schedule, allocate resources, oversee, do paperwork
• Attributes: organized, detail-oriented, patient, cordial, interpersonal, good communicator
• May not work closely with clients; may lead and mentor staff
Finder (business development)
• Responsibilities: find clients, identify opportunities to add value to clients, identify market segments, help adjust firms value proposition
• Attributes: interpersonal, good communicator, enjoy interacting with clients
Grinder (client services)
• Responsibilities: deliver client service that exceeds expectations, establish long-term client relationships, research, analyze, illustrate, do paperwork
• Great for new college grads and those who prefer not to interact with people
Business building activities
• Schedule client review meetings (quarterly at start of career, once or twice yearly after)
• Record names of friends and family your clients mention, and later ask client if they'd be good clients
• Sponsor a charitable event yearly
• Have meals with best clients
• Attend every party you're invited to
• Welcome all prospects; refer those who aren't a fit
• Stop selling and start telling stories
Displaying 1 - 1 of 1 review