Practice management expert turned advisor offers his lessons from time in the field
When I first started as a financial advisor, I thought I’d be doing one thing: helping people manage their money. I pictured myself sitting with clients, discussing savings, investments, and retirement. I knew we'd always deal with things with “dollar signs.” But as I progressed in this career, I realized I was more than just a “money person.” Clients turned to me for guidance in many areas of their lives, not just their finances.
Financial advisors must play several different roles. Here are six of the most important “hats” a financial advisor wears and tips to help:
- The Listener
Market ups and downs can be stressful, and clients often feel anxious about their financial future. A good advisor knows that before anything else, they need to listen. Advisors can create a secure and realistic plan by understanding their clients' fears and goals.
Advisor Tip: Start each meeting by asking open-ended questions. Let clients share their thoughts, then summarize what you hear. This shows you’re paying attention and helps build trust. It also starts the planning process.
- The Educator
Understanding finances can be tricky. Advisors often take on the role of teacher, explaining concepts like “risk versus return,” “diversification,” and “investor discipline.” A good advisor breaks down these topics so clients can understand and make confident decisions.
Advisor Tip: Use examples or stories to explain different strategies. When clients understand why a strategy was recommended, they’re more likely to follow it and feel empowered. When empowered, clients are more likely to decide when you ask.
- The Caretaker
Advisors think about the long term. They help clients with immediate needs and future goals. Acting as a “financial caretaker” means assisting clients in planning for what might happen over the next few years—or even decades.
Advisor Tip: Map out short-term, medium-term, and long-term goals with clients. Explain how these timelines affect your approach to their financial plans, showing clients the benefits of thinking ahead.
- The Wealth Coach
Clients can be tempted to make sudden, impulsive decisions when things get rough- like during market slumps. In these moments, an advisor takes on the role of a “wealth coach.” This means encouraging clients to stick to the plan and guiding them back to rational, well-thought-out choices.
Advisor Tip: Remind clients why they hired you to manage their wealth over the long haul. Like a sports coach, keep them focused on their strategy and the discipline needed to achieve their goals, no matter the market environment.
- The Architect
Once the advisor understands the client’s needs and goals, it’s time to design the financial plan. Here, the advisor acts as an “architect,” piecing together a strategy that fits the client’s unique goals, risks, and timelines.
Advisor Tip: Make sure each plan is custom-built for the client. Explain how you chose each part of the plan, helping clients see how it fits their financial journey.
- The Expert
In today’s world, everyone can search for financial advice online, but clients still need the wisdom and experience of a real expert. An advisor helps clients make sense of complex financial news, understand market trends, and develop a strategy to reach their goals.
Advisor Tip: Clients look to you for answers, especially during uncertain times. Explain your process for filtering news so they know they’re getting reliable, unbiased advice. I always recommend that advisors ask clients to check in with them on news that “rattles.”
These roles—listener, educator, caretaker, wealth coach, architect, and expert—are more than just titles. They are the ways advisors build trust, help clients reach their goals, and create their unique “advisor brand.” By wearing these hats, advisors manage money and guide clients through their financial journey. And it’s this that will have clients speaking about you, your process, and your accomplishments to friends and family.
These roles, which we play in the service of our clients, combine our technical knowledge and experience of how dollar signs relate to our clients' lives.
How we carry ourselves when wearing these various hats creates our unique advisor brand. We uniquely guide clients through their specific financial journey. And it’s this that will have clients speaking about you, your process, and your accomplishments.
Jeff Thorsteinson is a partner in Advisor Practice Management, an organization that helps financial advisors build world-class practices through innovative concepts, tools, and systems. Jeff works with individual advisors, investment dealers, insurance firms, and fund companies. For more information about Advisor Practice Management, contact [email protected] or 1-800-223-9332, or visit the website at www.advisorpracticemanagement.com.
