What Does A Financial Advisor Do?

The stakes are high when it comes to what financial advisors do. We're talking about value here - and a whopping 95% of respondents in a survey hold the conviction that it is a financially sound choice. But, here's the twist: depending on the source, 65% - 99% of Americans don't use a financial advisor.

 

Although it may appear commendable for those who fall into the latter category, it can pose a significant risk. And here's the kicker - some advisors may be contributing to this apathy - so, whether you are looking to hire an advisor or an advisor looking to stand out from the park, watch out for the following practices and beliefs that can prove self-destructive.

Let's clear the air…

What Finacial Advisory Is Not About

Financial Advisors Only Care About Money - They Are Costly

Three prominent things we've noticed that drive this myth:

• Well-meaning advisors that are poor at “selling.” For example, they do not possess high-value prospecting strategies that do well to communicate the value they bring to the table, lack the skill to uncover opportunities that can help their clients, or end up pushing solutions on the client because they missed the mark during the all-important “fact-find” phase.  

• The portrayal of advisors in the media. You see, sometimes financial advisors get a bad rap from the entertainment industry - they are portrayed as greedy, money-grubbing, and willing to throw their clients under the bus just to make a quick buck. 

• Finally, and sadly so: there are a few bad apples in the bunch - scrupulous individuals wearing the cloak of “financial adviser”  to prey on unsuspecting clients, lining their own pockets at the expense of those who put their trust in them.
  

But, let's be clear: 

The best advisors understand that the key to making money is by putting their client's needs first. In other words, they will take the time to get to know their client's goals, dreams, and aspirations, and help them create a plan that aligns with their unique needs. 

And in many cases, it doesn't end there: beyond money matters, the rising trend is advisors assuming the role of a life coach meaning they build strong relationships with their clients and strive to provide guidance and support throughout all areas of their lives. 

And you know what that means? It means peace of mind and financial security. There's nothing more valuable than that, wouldn't you agree?

But how can advisors become that good? 

Not to beat around the bush: Advisors can become truly exceptional by leveraging the Taylor Method - a proven and validated system that has enabled thousands of their colleagues worldwide to soar. This system provides advisors with an extensive array of resources that enable them to focus on helping clients solve problems rather than just peddling products, which has resulted in more wins for clients and advisors.

Financial Advisors Serve Only Wealthy People

First things first - let's bust a myth. It is worth noting that a study conducted by MagnifyMoney revealed that 42% of Americans believe that financial advisors exclusively cater to wealthy individuals. Come on, people! That's like saying only Olympians get to wear tracksuits. It's just not true.

The fact is, financial advisors are bound by professional ethics to offer a valuable service to anyone who wants to make smart decisions with their money.  Therefore individuals with limited financial means must possess the same expectations and opportunities as those with greater wealth when seeking financial advice. 

People Have To Wait To Be middle-aged To Enlist Finacial Advisory Services

If you find yourself entertaining such a notion, here is an analogy that aims to illustrate the foolishness of this line of thinking:

Suppose you are driving in an unfamiliar area, do you wait until you are midway through your journey before consulting your GPS? Of course not. 

Unfortunately, some people especially Gen Z (44%) might end up driving blind and risk running into financial roadblocks that could jeopardize their financial future if they don't dispel this notion.

The truth is, a good advisor understands that the earlier you begin, the better. Just like taking care of your health, you don't wait until you have a heart attack before visiting a doctor. In the same vein, you don't wait until you're drowning in debt or can't pay your bills before seeking the help of a financial advisor.

Important Heads Up!

We're in the midst of a seismic wealth transfer to the younger generation, underscoring the critical need for them to adopt a proactive approach to financial management from the onset. Simultaneously, this necessitates that advisors adapt and evolve to cater to the demands of this next generation of clients who place a premium on cutting-edge technological solutions and unmatched guidance. The bottom line: It's never too early or too late to seek the help of a financial advisor, and only advisors who continually invest in their professional development can be deemed invaluable.

What A Truly Exceptional Advisor Can Do

Let's not kid ourselves - the reality is that financial advisors are not all cut from the same cloth. Some may not have the skills or expertise to truly help their clients reach their goals. And if we are being honest, even the best of us have areas of weakness.

At this point, the question that begs to be answered is this: Why should you, dear reader, care?

Either of two reasons:

1. If you are thinking of working with a financial advisor (we all do at some point in our lives): Unless you understand the importance of working with a competent financial advisor who can help you achieve your goals, you'll likely fall prey to bad advice or ineffective strategies. But how do you know who's the real deal?  Shortly we will reveal some traits to help you separate the wheat from the chaff.

2. If you are already a financial advisor: It's worth noting that success leaves clues. High-performing advisors all share certain attributes, which you can learn from to improve your performance and better serve your clients.

So…

What Are The Functions Of Competent Financial Advisors?

Assess The Needs Of Clients

Assessing clients' needs is the bread and butter of any advisor. But let me ask you this: how can advisors effectively assess clients' needs if they don't even know what questions to ask? Hence the need to go deep, way beyond the surface-level chit-chat - it entails conducting thorough fact-finding interviews that get to the heart of the client's financial goals and dreams. Frankly speaking, this is the best way to guarantee a satisfactory outcome - personalized solutions minus the guesswork. And isn't that what you'd like?

Build  Strong Relationship With Their Clients 

This is not a task to be taken lightly. Why? It is the best way to establish solid trust and rapport. Here is the thing:

When clients trust their advisors, they are more likely to feel comfortable sharing their financial information, goals, and concerns - and this information is critical for the advisor to develop a customized financial plan that meets the client's needs and helps them achieve their goals.

Secondly, financial planning often involves making difficult decisions and taking actions that require discipline and sacrifice. And advisors that are unable to win the trust of their clients may find it difficult to convince said clients to take the requisite steps to meet their goals.

What are the traits of trustworthy financial advisors? Clients often look out for these:

• Honesty and Transparency - a trustworthy advisor strives to be always upfront and transparent about their services, fees, and commissions and doesn't sugarcoat their advice just to please people.

• Reliability -  following through on their promises, providing unwavering support to their clients, and being there when it matters most.

• Good Communication - they take the time to actively listen to their client's needs and concerns and respond to their questions and feedback appropriately.

• Personalized Approach: refraining from recommending cookie-cutter approaches or promoting products that are not in the client's best interest.
  

Takeaway: Advisors need to be in their clients' corner - have their back, and make them feel they truly care. If an advisor can't do that, then they have no business in the profession.

Focus On Solving Problems

To put it another way, advisors need to be facilitators of solutions. For example, when a client needs life insurance but during the fact-finding interview it is discovered that they have a pre-existing issue with their mortgage or tax bill, a competent financial advisor won't just limit their help to the insurance deal they are proposing, rather they will work to find alternative solutions such as referring them to mortgage or tax experts that can serve the clients best interest. Ultimately, everyone wins in this scenario.

Educate Clients

Sure, an advisor could give clients a fish and feed them for a day, but wouldn't it be better to teach them how to fish and feed them for a lifetime? By educating clients, financial advisors empower them to make informed decisions about their finances, which ultimately leads to a stronger, more financially secure future.

Quell Objections

In the face of objections from hesitant clients, a highly skilled financial advisor is adept at using sound reasoning and evidence-based information to ease their concerns. The fact of the matter is objections are a natural part of the advisory process i.e. as a client feel free to raise your concerns, and the advisor and advisors should always be prepared to address them with empathy and professionalism. With that in mind, clients tend to prefer working with advisors who can proactively address their objections, as it demonstrates a level of attentiveness and care toward their needs and concerns.

Provide Guidance And Support

Support may come in the form of regular meetings or check-ins, educational resources and tools, and timely advice on market changes or other factors that may impact the client's financial situation. It doesn't end there - advisors also help provide accountability - helping their clients stay on track even when things get tough. They're like a personal trainer for your wallet - pushing you to make the right choices and keeping you motivated along the way.

Continue To Learn, Grow, And Improve Their Skills

As with most other professions, the financial world is constantly evolving, and advisors who are complacent not only risk falling behind but can be a step away from leading their clients to disaster.

Learning can take many forms: from attending industry conferences and seminars and enrolling in the Taylor Method to pursuing advanced certifications to staying up-to-date with industry publications and news. Thats not all. It involves a willingness to ask pertinent questions and solicit guidance from a mentor to address their area(s) of deficiency. 

By investing time and resources into their education and training, advisors can better understand the complex financial landscape and can provide the highest level of service to their clients, and stay ahead of the curve in a constantly changing industry.

Now, you might be thinking - "Wow, that sounds great! But how can an advisor help me?" We reveal all in the next section - read on:

How Finacial Advisors Help Their Clients - Financial Advisory Services

Here's the deal: life is unpredictable, and money can be a fickle beast. One minute you're cruising down the highway of life, feeling good and in control. But then, out of nowhere, you hit a bump in the road - maybe it's a job loss, a medical emergency, or a global pandemic. Whatever it is, suddenly everything feels uncertain and scary. That's where financial advisors come in. The following are examples of services advisors provide:

• Financial Planning: The true beauty of this approach lies in its personalized nature, which ensures that the plan crafted is fully aligned with your specific financial needs and aspirations. So whether you're planning towards retirement, want to buy a new house, or beat down your college debt, an advisor can help!
  

• Investment Management: Most people like the idea of investing but find it daunting. Financial advisors can create an investment strategy that aligns with the goals and risk tolerance of their clients while also monitoring the investments and adjusting the portfolio as needed to keep it on track.

• Insurance Planning: An advisor can help you evaluate your insurance needs and make sure you have the right coverage in place to protect your assets and your loved ones.

• Tax Planning: Taxes got you down? Not only can a financial advisor help you understand the tax implications of your financial decisions, but they'll also work with you to minimize your tax burden and help you keep more of your hard-earned money.

• Estate Planning: Like it or not, we all are but mortal, thus estate planning is an important decision that can help forestall family squabbles as well as preserve the legacy you've shed sweat and blood to build. Advisors help individuals create plans for passing on their assets to their loved ones and ensure that their wishes are carried out after they're gone.

The Taylor Method: Objection-Free Sales Training Benefits Clients And Advisors

Picture this: Clients are openly sharing their every financial concern and need with their advisors and readily accepting proposed solutions without any hint of skepticism or doubt.

Sounds too good to be true, right? Well, it's not. Welcome to The Taylor Method, the ultimate objection-free sales training program that helps insurance and financial services professionals develop the mindset, process, and language to build their million-dollar practices.

Here's the exciting part: As advisors utilize a proven methodology to overcome objections, they're not only benefiting themselves but also serving the best interests of their clients. Because objections stem from fear, uncertainty, and doubt. But when clients feel confident in your expertise, they'll be making decisions that'll lead them to financial success.

So it's safe to say, the Taylor Method is not just a sales training program. It's a way to make a real difference in people's lives. As an advisor, you'll be making more sales, sure, but you'll also be impacting people's lives positively. What could be better than that? The opportunity to join the Taylor Method is now open; seize it, and enroll now!