18/07/2020
Financial Advisor Skills & Competencies:
Financial advisors should have the following skills to perform their job successfully:
• Interpersonal skills: The ability to manage relationships with clients, staff, and others inside and outside of the firm, which includes dealing with failure and dissatisfied clients.
• Analytical skills: The ability to account for a range of information, including economic trends, regulatory changes, and the clients risk tolerance when determining an investment strategy.
• Communication skills: The ability to distill complex financial concepts into information that clients can understand.
• Math skills: The ability to work well with numbers, as math is necessary for performing calculations, analyzing financial data, and determining a financial strategy.
• Sales skills: The ability to successfully acquire new clients and explain investment ideas to existing clients.
• Stress management skills: The ability to work well under pressure to deliver client information on a timely basis.
Education: A bachelor’s degree in finance, economics, accounting, business, mathematics, or law is good preparation for this career.
Coursework may include investments, taxes, estate planning, and risk management. Programs in financial planning are becoming increasingly available in colleges and universities. Also, a master's degree in business administration or finance can increase the chances of moving into a management position and attracting new clients.
Training: New employees often receive on-the-job training usually for more than a year. New advisors work under the supervision of senior advisors and learn how to perform their duties, including building a client network and developing investment portfolios.
Job Outlook
According to the BLS, employment of personal financial advisors is projected to grow 15% until 2026, much faster than the average for all occupations. A growing number of baby boomers are nearing retirement and will need guidance from personal financial advisors. Also, longer lifespans will lead to longer retirement periods, which will also increase the demand for financial planning services.
Work Environment
Financial advisors primarily work in offices at small or large firms. Some travel may be required to attend conferences, seminars, or networking events to bring in new clients. They may also need to travel to clients' offices or homes.
Work Schedule
Most financial advisors work at least 40 hours per week. They often go to meetings on evenings and weekends to meet with clients