Does the age of your financial advisor matter? (2024)

FAQs

How old should your financial advisor be? ›

The average age of the profession also contributes a bit. Many financial advisors are in their late 50s and closing in on retirement.

There was a LinkedIn poll earlier this year from NextGen Planners asking how old people were when they started a career in financial planning. The vast majority – 60% – were under 25 and a further 35% were between 25 and 40. That meant a tiny fraction were over 40.

To qualify for CFP credentials, a candidate must have 6,000 hours of relevant professional experience, which amounts to about two years of work. Alternatively, a candidate may complete 4,000 hours of supervised apprenticeship work, which must meet more stringent content requirements.

Generally, having between $50,000 and $500,000 of liquid assets to invest can be a good point to start looking at hiring a financial advisor. Some advisors have minimum asset thresholds. This could be a relatively low figure, like $25,000, but it could $500,000, $1 million or even more.

Should I get a financial advisor in my 20s? Not every decision requires a financial advisor, but if you prefer to have someone to talk to about major financial decisions, or if you'd like someone to manage your assets, then an advisor may make sense for you.

Bad advisors may make false promises and put more of an emphasis on maxing out investment returns than their client's overall goals, even if it means increasing risk more than is needed.

Your 40s are rife with savings opportunities that set up what's to come in the decades ahead. A financial advisor can help you prepare for both your present and future goals.

Can I become a financial advisor at 40? ›

Transitioning to a career in financial advising at the age of 40 is a strategic move that holds numerous advantages. The journey showcases the importance of mindset, leveraging life experiences, and embracing the opportunities presented in the finance industry.

Being a financial advisor can be highly stressful due to the responsibility of managing clients' financial futures, market volatility, and the need to make crucial decisions under pressure. Stress levels can vary based on individual clients and market conditions.

Successful financial advisors are ones that put the interests of their clients first and their own interests second. The advisor must believe that the financial interests of both parties should be aligned, or else a harmful relationship may occur.

While managing a client's portfolio may be a very straightforward endeavor, managing their expectations can be much harder. Many clients have unrealistic expectations when it comes to investment returns and interest rates. For starters, clients are often not financial professionals.

How a young CFP hit the ground running. The average age of a financial planner in the U.S. is nearly 51. With 43% over age 55, it's hardly a youthful profession.

The first time you should start financial planning is once you start earning, regardless of age or income. Of course, there is nothing wrong with celebrating your first paycheck! But years down the road, you will be happy that you started on the right foot by planning ahead.

The average age of a wealth management industry client is around 64. Next year the average age will likely be 65. And the year after 66.

The views presented here do not necessarily represent those of Advisor Perspectives. New advisors face an uphill battle. Building your clientele from scratch and producing results for your firm – all while trying to learn the business – is tough. In fact, 80 to 90% of financial advisors fail in the first three years.