As financial advisors can attest, their career can be challenging and, at times, stressful. But as the results of our just-released FlexShares Advisor Wellness Study indicate, being a financial advisor also can be immensely rewarding—and not just from a compensation perspective.
Advisors as a group enjoy high levels of satisfaction with their jobs, their lives and their work-life balance. Overall, 81% say they like their job better than the average person, up from 79% in 2018. Even better, job satisfaction increases with age and tenure in the business.
Key Takeaways
- What advisors value most about their job may not be apparent
- Career satisfaction comes from helping people and forging relationships
- The flexibility of a financial advice career can have significant appeal
Especially for those involved in advisor recruitment, insights into job satisfaction among advisors can be valuable. So what makes an advisor’s job so satisfying? Surprisingly, it’s not earnings. For a career that typically is highly compensated and focuses on money, advisors ranked income near the bottom in terms of satisfaction drivers. The three dominant reasons for satisfaction were:
- the ability to help people and provide service (the overwhelming first choice)
- independence and flexibility
- the quality of the relationships that advisors form
Let's look at each.
1. A helping profession
When asked what they loved most about their job, 58% of our survey respondents said it was having the ability and opportunity to help people and provide service. As advisors know so well, providing information and guidance about matters related to investments and finances involves much more than money and numbers. The real job of an advisor is to understand a client’s dreams, hopes and goals for the future, and then develop a plan that gets them there.
Investments are certainly an important part of an advisor’s tool kit, but essentially they are a means to an end. Advisors learn quickly that true satisfaction comes not from selecting an investment that outperforms the stock market but, to cite one example, from seeing parents provide for a special-needs child even after they are gone, no matter what happens. Or by making sure a widow never has to burden her children for support. An advisor’s unique body of knowledge, often encompassing taxes, insurance, Social Security benefits and, of course, investments, can add immeasurable value to a client’s life.
Advisors who have worked with the same clients over many years see firsthand how their advice has positively affected their clients. That’s one reason, perhaps, our survey found that career satisfaction steadily increases with age. This could be why, as our survey also found, many advisors work into their 70s and even 80s.
Advisors learn quickly that true satisfaction comes not from selecting an investment that outperforms the stock market but, to cite one example, from seeing parents provide for a special-needs child even after they are gone, no matter what happens.
2. A profession with flexibility and independence
Regardless of the advisory channel in which they work—and survey respondents spanned the gamut from wire houses and regional firms to independent firms and hybrids to RIAs and bank brokerages—advisors value the independence and flexibility that comes with their job. In fact, almost 19% said it’s what they love most about being an advisor.
Independence and flexibility can take many forms. In a basic sense, it’s the freedom from “punching a time clock,” even if only metaphorically. As long as advisors do a good job for clients and, hopefully, are able to attract more clients, they are typically free to do their job in a way that suits them best. Many potentially successful financial advisors may not be aware of this aspect of the career.
3. An opportunity to build successful relationships
Because, as we noted above, financial and investment advice is a helping profession, it is also a people business. While someone who loves analytics and data may make a stellar portfolio manager or strategist, it’s successful interpersonal skills that make for great financial advisors. And because of those skills, advisors often build rewarding long-term relationships with clients as well as others in their firm, their community and the financial advice industry. More than 13% of advisors in our survey said that the relationships they have forged are what they love most about their job.
For those in the advice profession and those looking to attract new financial advisors, knowing what really drives advisor satisfaction can help inform better decision-making.
FAQs
The role of a successful advisor goes beyond simply providing advice. It involves building strong relationships, understanding the needs of your clients, and guiding them towards making informed decisions. A successful advisor is not just a consultant, but also a mentor and trusted confidant.
What makes the perfect advisor? ›
The role of a successful advisor goes beyond simply providing advice. It involves building strong relationships, understanding the needs of your clients, and guiding them towards making informed decisions. A successful advisor is not just a consultant, but also a mentor and trusted confidant.
Why do I love being a financial advisor? ›
I love when plans change, and I can show them the financial path to make that change. These are the real-life decisions that help clients build a better life and find more happiness. And while I am only one small part of that process, I never take it for granted. A career as an advisor may not be for everyone.
What are the benefits of being an advisor? ›
Here are some of the primary benefits of becoming a financial advisor:
- Offering Meaningful Advice.
- Unlimited Income Potential.
- Work Schedule Flexibility.
- Creativity in Practice Structure.
- High Stress Industry.
- Continuous Prospecting.
- Regulatory and Compliance Requirements.
Mention your passion for helping people
Financial advisors have significant responsibility because they can directly influence their clients' financial future. The passion for interacting with people and helping them with their financial goals is an ideal attribute that many employers seek.
What are the qualities of an advisor? ›
This includes the ability to both listen and speak effectively. These skills help your advisor gather the right information, and also communicate their ideas and advice clearly. Often times, their ability to listen can help you finally effectively convey to those around you what is swirling around in your head.
What is the importance of advisors? ›
They help you make decisions and avoid costly missteps. They bring the insight you need, when you need it – and there's no long-term commitment to keep your advisor around forever. You can bring in a business advisor during key seasons or transition points, then leverage your internal team to execute on your strategy.
What motivates financial advisors? ›
Passion for Financial Planning and Wealth Management
In a field where standards, laws, strategies, and products constantly evolve, passion is the fuel that keeps you learning more each day. This passion will make you eager to navigate a financial world that is very different from a few decades ago.
What do you enjoy about being a financial advisor? ›
Advantages of a Career in Financial Planning
- the ability to help people and provide service (the overwhelming first choice)
- independence and flexibility.
- the quality of the relationships that advisors form.
Provide a holistic approach to your finances
A financial advisor considers your entire financial picture—not just a single investment or account—and can help you understand your assets achieve the maximum benefit.
The emotional value of a human advisor
Vanguard has reaffirmed the advisor's role in the investor's financial future by identifying the peace of mind and excess value that they bring to their clients.
What is the goal of an advisor? ›
Goals of Advising
Advisors ensure that students understand and meet degree requirements. Advisors help students develop a perception of themselves and their relationship with the future. Advisors encourage self‐reliance by helping students make informed and responsible decisions and set realistic goals.
What is your responsibility as an advisor? ›
The Role of the Advisor
Intervene in conflicts between group members and/or officers when necessary. Be knowledgeable of policies that may impact the organization's decisions, programs, etc. Provide continuity and stability as student leadership changes. Provide an outside view or perspective.
Why do I want to work in advisory? ›
"I chose to work as a consultant because I love learning from others in my industry as much as I love teaching. As a consultant, you have a variety of experiences and knowledge to contribute to your clients, but you can also learn a lot from them as well.
Why do I love being an academic advisor? ›
I had always been in a role with a lot of student contact, so it was a natural transition. Advising for me feels like a true helping profession, and I love working with students as they work toward their goals.”
What should I expect from my advisor? ›
You'll have in-depth conversations about your finances, short- and long-term goals, existing investments and tolerance for investing risk, among other topics. Your advisor will work with you to create a plan tailored to your needs: retirement planning, investment help, insurance coverage, etc.
What are the 11 advisor attributes? ›
The eleven advisor attributes are disciplined, mature, sound judgment, initiative, cool under pressure, tolerance for ambiguity, open-minded, empathetic, situationally aware, patient, and morally straight.
How to be the best advisor? ›
Great advisors are expert listeners, adept at asking the right questions and are aware of self and others. They are perceptive and they listen (without judgment) with their entire self to both verbal and non-verbal cues.
What is the trait of the trusted advisor? ›
Trusted advisors will express genuine emotion towards their customers and their challenges. They will actively listen to your key problem areas and show empathy towards them, instead of brushing them under the rug.
What is the meaning of good advisor? ›
Advisors don't just give advice, they also give perspective, ask questions, and are forward-thinking. Clients want to work with someone who's on their team but has the insight to see what they can't and the initiative to prevent potential problems.
