What are some challenges that financial advisors face?

Hi Edmond,

​

Financial advisor here.

​

Let's get the ball rolling. I'll also address some points others have brought up, but it is 230am and I have a 930am appointment tomorrow so I have to head to bed soon.

​

Understanding people

• This is the core of financial advisory. I will say this, if you don't understand what the client is asking or saying (even if he/she asks in a roundabout manner), you will never be able to help them. It is my job to break down what they are saying when they approach me for help, and even today, it's not something that is easy for me. Financial advisory is a people business and you will have to meet all sorts of people.

Rejections

• If you can't cope with rejections, this industry may not be for you. I didn't really bother to count how many times my proposals were rejected. Even after putting in hours thinking about the issues my clients face, looking at various possible solutions and narrowing it down to a proposal that suits them (a process that can take hours easily), I may still get a 'no' from them. But that is ok. Rejection is part of the job and not everyone may like what I can provide. However what really bothers me is when a client fails to turn up for the appoitment (zoom or in person) without even notifying me or when a person does not act on my advice but repeatedly returns to me just to seek my updated opinions (After a while you will be able to sense it). I'm sorry but this is not fair to other clients who need my time and advice as well and are committed to taking action. I only have 24 hours a day and I would rather spend my limted time to assist them.

Making a living

• It will take a while before you can make an income. I didn't join a scheme whereby I get a salary to get me started, so I basically made $58 dollars in my first month. Yes, you read that right. These days it's better, and I can pay my mortgage on my HDB and put food on the table. But this is also an industry where your will power will be tested especially in the beginning, and you might question your decision to jump from a stable salaried job into the unknown abyss that comes with being self employed. I do more than just insurance though, so it does help that I have income streams from stock broking related activities, direct AUM and of course, insurance.

Friends

• Win some, lose some. So I avoided this problem by not working with my friends. Yes, I only have a handful of friends who are my clients, and only because I have stayed long enough that they didn't have the fear of me abandoning them and their portfolios/policies (not that leaving this industry crossed my mind). 99% of my clients started as total strangers. But to work with a stranger has its challenges as well. You can't please everyone, and you certainly can't work with everyone.

Targets

• Doesn't apply to me. I really don't have targets, my boss never set anything for me and he just said 'Go out and do what you need to do to help people with their situations'. But if you are in a place with targets, I can imagine you facing stress to close a deal just to meet your targets, even if the deal is less than optimal for the client. But in doing so, you set yourself up to repeat this process all over again. Don't. Go back to my first point. Understand the person first. If you sell something wrong (as my first financial advisor did to me; either he was just aiming for commissions, or couldn't be bothered to listen to me), you can be very sure if they find out, you lose them, and their network, and you undo all that trust in an instant.

​

Hi Edmond, financial advisory is a meaningful career as your advice will not only impact the individual you're talking to but also the decision you lead the indivdual to take could potentially impact the lives of his family as well. It's also rewarding as there's a lot of incentives/ monetary awards if you do well.

​

Some challenges financial advisors face include:

-Getting friends to meet you like before. As there's still the stigma associated with this career, some will start to avoid you, or reject you.

-Getting referrals from friends

-Attracting new potential clients

-Hitting monthly sales target

-Keeping your own postive spirit up