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
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.
Why do you love being a financial advisor? ›
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 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.
Passion for Financial Planning and Wealth Management
The successful financial advisors are the ones who have an absolute passion for the subject. This is important because standards, laws, methodologies, and products within the financial and investment worlds are constantly evolving.
Do financial advisors enjoy their job? ›
Most financial advisors love the freedom that comes with being able to do what they want and when they want. You can decide to work with a wide range of clients or work exclusively in a niche that you love. Of course, I try to get financial advisors to choose a niche and specialize in that niche.
What is the best part about being an advisor? ›
Advisors have the unique opportunity to help shape the success of another company, and as a result they also have a unique relationship with the CEO. Many CEOs view their advisors as a personal mentor and role model, helping them to become better overall leaders.
What is the value of an advisor? ›
Industry studies estimate that professional financial advice can add between 1.5% and 4% to portfolio returns over the long term, depending on the time period and how returns are calculated.
What is the value of working with an advisor? ›
An advisor can help you plan how to invest your savings, and build toward your future goals and needs. An advisor may help to protect your income and lifestyle from unexpected events while avoiding emotional investing habits. An advisor's professional advice may play a key role in giving you confidence in your plan.
What is your goal as a financial advisor? ›
Some of the most common financial advisor goals include growing your client base and increasing revenues.
What are the pros and cons of being a financial advisor? ›
Becoming a Financial Advisor
| Pros | Cons |
|---|
| Unlimited earning potential | You must develop a client base |
| Low start-up costs | Marketing costs vary widely |
| Lifetime learning | You will never learn everything |
| Huge range of products + strategies | Consider a somewhat narrow focus |
5 more rowsWhile 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 to succeed as a financial advisor? ›
Tips for being a successful financial advisor
- Practice good communication. Communication requires both listening and speaking. ...
- Seek peer reviews. ...
- Utilize marketing opportunities. ...
- Invest in yourself. ...
- Track progress. ...
- Create a celebration folder. ...
- Stay engaged. ...
- Volunteer locally.
Sample Answer: I believe my experience as a financial advisor with my previous employer makes me a strong candidate for this position. I have a strong network of clients and a wealth of knowledge about financial planning that I would love to put to use here.
Why are you interested in financial services? ›
I want to work in finance because I enjoy the challenging nature of the industry and how fast-paced it is. I thrive under pressure. I enjoy problem-solving and analyzing data, but also realize that finance is not just about the numbers, it is about the people too.
Why should I be interested in financial services? ›
The Benefits of Working in Finance
Finance degree jobs can provide relatively high pay, stability, opportunities for advancement and consistent demand projections. Careers in finance may also offer flexibility for employees by allowing them to work remotely or in hybrid environments.
What is a financial advisor and why would you make a good one? ›
A financial adviser is a professional who works with clients to help them make proper decisions regarding their investments and financial accounts. They often work with financial institutions or independently, as they meet clients to discuss their plans.
