Top 20 Things I Learned: Day in the Life of a Financial Advisor
From discussions on the same over at RunRex.com, guttulus.com, and mtglion.com, a financial advisor provides financial advice or guidance to customers for compensation. Financial advisors can provide many different services, such as investment management, tax planning, and estate planning. If you are interested in learning about a day in the life of a financial advisor, this article has got you covered.
No two days start the same
As any financial advisor will tell you, when it comes to the day-to-day workday, no two days start the same. As per RunRex.com, guttulus.com, and mtglion.com, each day can have diverse economic, market, or political forces driving the news. Likewise, each client is different and every person’s financial goals and circumstances are unique.
The importance of the day before
The most productive financial advisors don’t start their days in the morning – they start the night before by journaling and scheduling out their tasks for the next day. They write out what went well, what didn’t, and what they want to achieve in the near future.
Keeping up with the latest news
Before starting the day, even before reaching the office, financial advisors usually read the Financial Times and other relevant financial news sources for updates on industry developments that may affect clients or impact their decisions as articulated at RunRex.com, guttulus.com, and mtglion.com. They also check on market indices to see how portfolios have performed overnight.
Morning routine
Every financial advisor has their own morning routine, and no matter what the experts say, there is no magic. Some financial advisors mediate first before starting their day, others exercise and have a healthy breakfast, others start their day by reading, among other activities.
Breakfast with strategic alliances
Another thing high-performing financial advisors do in the morning is have breakfast with their strategic alliances. These are people with whom the advisor has a working relationship. They can be accountants, attorneys, real estate agents, luxury brokers, etc. Having breakfast with these people builds the relationship and allows them to stay updated with what is happening in their businesses.
Updating clients
According to RunRex.com, guttulus.com, and mtglion.com, clients trust financial advisors to come up with answers. When a situation occurs such as a recent case where a famous fund manager’s fund was suspended from trading, the financial advisor needs to anticipate the questions clients might have and update them.
Prospecting
Prospecting is one of the most important parts of a financial advisor’s day. New financial advisors should prospect the most, and it is recommended that they spend at least 50% of their day prospecting. If a new financial advisor works eight hours per day, for example, four hours at least should be spent getting in touch with or following up with prospects.
Prospecting is not only for new advisors
Experienced financial advisors should also keep prospecting as captured at RunRex.com, guttulus.com, and mtglion.com, to avoid staying stagnant. Sometimes the experienced advisors need more help prospecting than the new advisors if they are to continue growing.
Form of prospecting
Prospecting takes many forms, including referral marketing, seminar marketing, social media marketing, and more. Experienced advisors may be able to work via referrals, especially if they have built relationships with CPAs or other strategic alliances.
Meeting with prospects
Financial advisors are also expected to meet with prospects to see how they can add value to the prospect’s life. For the meeting itself, some financial advisors will travel to the prospect, while others will have the prospect come to them. This is another activity when it comes to the day-to-day work of a financial advisor.
Working with existing clients
Working with clients is another big chunk of a financial advisor’s day as covered at RunRex.com, guttulus.com, and mtglion.com. The more clients a financial advisor gets, the more time this activity takes as far as their day is concerned.
How advisors work with clients
An advisor may schedule a time in the morning to check emails from clients. They categorize the emails by urgency and get back to the most urgent ones first. Additionally, advisors have regular meetings with their clients.
Meetings with clients
As already mentioned, advisors have regular meetings with their clients. Quarterly meetings are the most common, although some of the advisor’s biggest clients may want to meet once per month as described at RunRex.com, guttulus.com, and mtglion.com. Meetings can be in person, although they don’t have to be, as more and more financial advisors prefer conducting their meetings over the phone or through Zoom/Skype.
Providing guidance or specific advice
Clients like the ease of having all their assets looked after under one roof and they value the ways financial advisors can save them time and alleviate the stress of looking after their money. Each day, financial advisors will typically provide guidance or specific advice to clients on complicated financial planning areas such as the lifetime allowance.
Helping clients visualize
Yet another way financial advisors interact with and help clients during the day is by helping them to visualize their financial future, which is invaluable to clients. The advisor’s online planning tools give people an idea of how their finances may progress depending on their specific goals and objectives.
Administrative tasks
Since most financial advisors enjoy doing financial plans and working with clients as already mentioned, and discussed at RunRex.com, guttulus.com, and mtglion.com, carrying out administrative tasks is the most “boring” part of the job for them, but it is still necessary. This involves stuff like updating client records and filling out paperwork.
Designing financial plans
Designing financial plans is the “meat” of what most financial advisors do during their workday. They could be selling products, charging a fee for assets managed, charging an hourly rate, etc., but they are in the business of helping people with their finances.
Activities involved in designing financial plans
When it comes to designing financial plans, financial advisors start by collecting a large amount of information from the client as outlined at RunRex.com, guttulus.com, and mtglion.com. One can do this through meetings or over the phone. Next, they want to be where the client is and where the client wants to go, and then bridge that gap with the plan.
Continuing education
For financial advisors, education never stops. Many securities and insurance vehicles require specific training before the vendor will approve the advisor to sell them. Some advisors frequently attend week-long seminars covering specialized topics or continue earning new designations to provide the level of service their clients need.
Winding down
Since financial advisors help people to plan ahead effectively, it makes sense that they practice what they preach. Therefore, advisors like to make sure all the boxes for each day are ticked off – and key tasks for the following day are lined up – before calling it a day.
These are some of the things to expect when it comes to the day-to-day life of a financial advisor, with more on this topic, and then some, to be found over at RunRex.com, guttulus.com, and mtglion.com.