Are you interested in a financial advisor career?

Or, have you recently become a financial advisor and wondered if this career path is worth it?

In this article, we’ll go through the pros and cons and help you make a decision as to whether being a financial advisor is worth it or not. It’s definitely not the right career for everyone.

Key points

Pros of a financial advisor career:

  • Helping people in retirement can be a very rewarding career
  • You typically work for yourself and have a lot of flexibility with work hours
  • Advisors have the potential to earn high salaries as long as they can build a loyal client base and grow their book of business

Cons of a financial advisor career:

  • Getting new clients can be difficult if you’re new and inexperienced
  • Many financial advisors fail because of a lack of clients
  • Being an advisor can be quite stressful when you’re dealing with other people’s money and there are unexpected changes in market conditions
  • Advisors must constantly keep up-to-date on the latest and best tax-saving strategies, wealth management practices and retirement planning strategies

What really is a financial advisor, anyway?

Financial advisors typically have expertise in topics such as investing, taxes, retirement planning, and estate planning.

Most people will likely encounter a financial advisor at some point in their lives, whether during a major life event, such as buying a house or starting a business, or during a more routine event, such as setting up a retirement plan.

An advisor can provide valuable guidance and assistance with financial decision-making when planning for retirement.

The Pros of Being a Financial Advisor

Woman on phone with prospect

Being a financial advisor is a great career choice if you’re interested in finance and helping others. You can make a difference in people’s lives and earn a great living.

High demand profession

Financial advisors are in increasingly high demand due to the complex and ever-changing nature of the financial industry. Many retirees can increase their income in retirement by working with a financial advisor vs doing it on their own, according to some studies.

High income potential

Financial advisors can earn money in a variety of different ways. Some earn commission-based money for the financial or insurance products they sell.

Others charge a fee based on how many investments they manage. This is also known as investments under management (AUM).

And some advisors may charge a flat fee to work with someone, which can be lucrative if they are successful in generating sales.

Either way, there are lots of ways financial advisors are compensated and there is almost unlimited income potential.

Flexible schedule

A financial advisor’s flexible working schedule can be attributed to their work being commission-based, and they often work for themselves. This allows them to work when they can, giving them more flexibility with their time.

However, having your own schedule doesn’t mean you can always work whenever you like. You still need to put in a lot of work to get the best results from your career.

Fortunately, financial advisors love what they do so it doesn’t really feel like ‘work’ when you’re helping clients reach their financial goals.

Rewarding work

Financial advisors help people. They provide people with guidance and advice when it comes to their personal finances.

This can be extremely helpful for people who may not have much experience in financial matters, and it can be very satisfying to help clients plan for a successful retirement. Financial advisors can help people save money, invest money wisely, and plan for the future.

The Cons of Being a Financial Advisor

Sales Call

If you’re considering becoming a financial advisor, it’s important to be aware of the potential challenges of the job. While the rewards can be great, there can also be some stressors that come along with the role.

High-stress profession

You may deal with clients who are unhappy with their investment choices or outcomes, which can create a high-stress environment. Unhappy clients can be difficult and frustrating, especially if you’ve done your best to give accurate advice.

Changing market conditions

You always need to keep up with changes in the financial markets and legislation to keep your advice current. This can be time-consuming, and you could make costly mistakes if you’re not diligent.

Difficult to get new clients

If you’re a new startup financial advisor, it can be difficult to start without many clients. As a result, you always need to be prospecting to try to get more advisor leads, appointments and clients in your financial planning firm. Continuous prospecting may become tiring for some business owners.

Compliance and regulation limitations

Because the financial services industry is heavily regulated, you may be limited in what you can say or do to advertise your financial advisor business.

The good news is that compliance rules for most financial firms under the financial industry regulatory authority are becoming more open to modern ways of marketing a financial advisor business.

Requires licenses

A financial advisor is a professional who helps people make sound financial decisions. They may advise on investments, retirement planning, insurance, and other financial matters. To provide this type of advice, financial advisors need to be licensed.

This licensing ensures they have the education and experience necessary to provide sound advice. It also protects consumers by ensuring that financial advisors are held to a high standard of care.

Because of licensing requirements, it can be difficult for new advisors to start quickly. You also need to be licensed in each state if you want to work nationwide in the USA.

Requires a website

A good independent financial advisor will have their own financial advisor website to showcase their services. A financial advisor website also allows you to create a blog so you can rank your financial advisor website higher on Google.

Your website should be designed with your brand logos and colors and should have your legally registered business name. According to this post on GovDocFiling, your business name must be unique and should align with the name on your website.

Is being a financial advisor worth it?

If you’re looking for a lucrative career in the finance or investing space, becoming a professional financial advisor is worth looking into.

It might help to start as an insurance agent first because it’s easier to get leads for your insurance business as there are fewer compliance rules and regulations.

Later, you can get additional qualifications to be a certified financial planner or registered investment advisor (RIA).

How to Become a Successful Financial Advisor

Becoming a successful financial advisor requires discipline and excellent time management skills. You must be able to work well under pressure and handle difficult clients.

Financial advisors face unique challenges and continuing education courses is important to always stay current on what’s working best right now.

See this article for more info on how to be a successful financial advisor.