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
The passion for interacting with people and helping them with their financial goals is an ideal attribute that many employers seek. Express your desire to meet people and help them with their questions and objectives to show you're eager to assist others.
What makes you passionate about being a financial advisor? ›
Mention your passion for helping people
The passion for interacting with people and helping them with their financial goals is an ideal attribute that many employers seek. Express your desire to meet people and help them with their questions and objectives to show you're eager to assist others.
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 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.
Getting advice from a professional like an advisor can help you plan for and reach your goals. Your advisor should listen to your goals and help you develop a unique strategy to achieve them.
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.
Sample Answer #1:
I find finance fascinating because it allows me to make informed decisions based on data analysis and strategic thinking. I'm excited about the dynamic nature of the industry and the opportunity to continuously learn and adapt to new market trends.
Why being a financial advisor is great? ›
Being a financial advisor is a rewarding profession. Aside from enjoying a flexible work schedule and infinite income potential, you can also help families improve their financial situation and secure their future through expert advice on money matters.
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.
Why do I want to be an advisor? ›
58% of advisors revealed their main motivation for being an advisor is to share their knowledge, and the personal “feel good” satisfaction it brings to their life. And, as part of a company's trusted inner circle, advisors have an outlet to showcase their ideas and opinions, and bring them to fruition. 2.
They know your degree requirements, can help plan your courses and can answer any questions you have about your experience. They'll either answer your question themselves, or help you find the resources you need. In my experience, building a relationship with your advisor can have a huge impact on your college career.
What do clients want from their advisors? ›
Consumers want advisors who are knowledgeable, trustworthy, and good listeners. Saving for retirement in defined contribution plans has created a strong desire for knowledge of retirement income planning. Investors want their advisor to consider their ESG preferences when building an investment strategy.
What is expected from an advisor? ›
Advisors help students explore their academic interests, identify resources for additional information and support, and develop plans of study appropriate for their educational goals.
Why would I like to be a financial advisor? ›
High Earning Potential
Successful Financial Advisors are often well compensated for their expertise and the value they provide. As your client base grows and you build a reputation for delivering exceptional service, your earning potential can increase significantly.
What is the most rewarding aspect of being a financial advisor? ›
Positive impact on others: You can make a positive impact on your client's lives and helping them to achieve their goals can be extremely gratifying. Career flexibility: Advisor careers can offer flexibility, especially if you're operating your own practice.
Why are you passionate about wealth management? ›
Here are some internal reasons you should add to your answer: You enjoy the autonomy that wealth management gives you. You are an extrovert and love dealing with clients and people. You are a proactive person that likes to have a lot of responsibility.
Why are you the best candidate for financial advisor position? ›
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.
