If you're going to switch careers to become an advisor, there are two prerequisites: You must demonstrate honesty and integrity. And you should have a strong desire to help people.
That's a good starting point. But top financial advisors also exhibit a host of other traits that propel their success.
Before making the leap, assess whether you have the requisite skills and personality to hit the ground running in your new career. As long as you're sure you can check off all the boxes, you're more apt to build a lasting, lucrative practice as an advisor.
"You need to look inward and key in on how you work," said Caleb Brown, chief executive of New Planner Recruiting in Athens, Ga." Do you go beyond what's required in your job? Have you taken a lot of initiative? Do you keep digging to learn with curiosity?"
Success Traits Of New Financial Advisors
It takes vast knowledge to advise investors on how to make smart money decisions. There's no shortcut to acquiring all that knowledge.
"You're going to have to learn a lot very quickly," Brown said. "You may not have a lot of time in a small- or midsize firm to learn your job, where you may need to add value pretty quickly. So you'll want to learn on your own versus waiting around" for others to teach you or point out your mistakes.
If you join a large financial services company, it may provide extensive training to ease you into the business. And you may earn a salary at first.
But to continue to succeed and advance you'll need to develop diligent work habits. And you must make a commitment to continual learning.
Know What Drives You To Excel
If you're already an accountant, banker or other type of financial whiz, you may assume that launching a financial planning practice is a safe bet. But your technical prowess does not guarantee success as an advisor.
Some of the best number-crunchers fail as advisors. Why? They lack other skills that are necessary to grow a business. Advisors should have a marketing plan and the drive to execute it.
"You need persistence," said Jasmine Butler, a Tampa, Fla.-based certified financial planner at Edward Jones. "It's recognizing that a 'no' doesn't mean 'never.' It means 'not right now.' Keep it going. Continue to learn" and withstand rejection as you work to build your client base.
Early on, Butler learned to check in with prospects about six months after their initial meeting. She'd say, "I know when we first spoke, you weren't ready to have an advisor. Has anything changed for you?"
Career switchers who have already excelled as salespeople are well suited to building a client list. They understand that outreach takes time and perseverance. If a prospect isn't ready to come aboard, they still cultivate the relationship.
Butler adds that career changers need a high degree of self-awareness when shifting to become financial advisors. If they "know their why" and identify their life's purpose, they're more apt to approach their new career with enthusiasm and focused effort.
If You've Already Built A Network, You're A Step Ahead
Entrepreneurial thinking helps as well. If you're a self-starter who relishes your independence, that's a good sign.
Before switching careers, Butler sold human-resources solutions for a large company. She recalls thinking, "If I'm going to work this hard, I'm going to work for myself." So she joined Edward Jones and built her own practice over the past seven years.
Even if you didn't work in sales, your ability to speak and listen effectively can pave the way for success as an advisor. Forging strong bonds with wide-ranging personalities enables top advisors to earn others' trust and respect.
People who managed relationships well in their prior job tend to do well as financial advisors, says Ryan Sullivan, managing director at Wayne, Pa.-based Hartford Funds. Responding to customer needs, answering their questions head-on and addressing their concerns with empathy are part of every financial planner's toolbox of skills.
When others share their challenges and stories, do you show genuine interest? You need to listen and get feedback. If you listen, ask gentle questions and dig to find out what they feel and how you might help, Sullivan says you're equipped to succeed as an advisor.
"But if your first instinct is to minimize their challenges and say, 'Oh, get over it,' that's not good," he said.
If you've assembled a network of professionals who like working with you, you have another advantage in switching to become an advisor. That's because you'll be able to tap an existing base of potential clients right off the bat.
Sullivan cites a pharmacist in his 40s who recently became an advisor. He's off to a good start in part because he contacted industry peers to tell them about his new career.
"It's a natural place to start," Sullivan said.
