Top 10 Facts About Financial Professionals

facts about financial professionals

Financial professionals can be a source of inspiration and advice regarding money management. While many people turn to social media for financial information, seeking a professional for specific recommendations and strategies is vital.

Advisers use interpersonal communication skills to build relationships with clients. These finance pros also need to understand their client’s financial goals and how to achieve them. Here are 10 fast fascinating facts about financial professionals.

10 Fast Facts About Financial Professionals

1. They are knowledgeable about financial matters

Financial professionals have spent years studying finance, passed a rigorous exam, and built up their experience. This enables them to understand personal finances and retirement planning deeply.

Many Millennials and Gen Z say they have financial topics they want trustworthy advice on and are receptive to working with a professional. However, their financial literacy may impact their willingness to follow professional advice.

2. They are a source of inspiration

A financial professional needs to be able to engage with clients’ emotions alongside their finances. For instance, they may deal with issues like divorce, a terminal illness, or a sudden inheritance.

Sharing content that resonates with your target audience’s emotions will help you stand out from other financial professionals. It’s an ideal way to add your unique flavor to your USP.

3. They are a source of advice

Many respondents reported receiving professional financial advice from advisers or non-family financial professionals. (Question V108 of the experimental module.)

Finance professionals and equity analysts complete similar day-to-day tasks, but their career responsibilities differ. Equity analysts are likelier to earn a Master’s Degree than finance professionals. Nevertheless, both roles require skills like securities and financial reports. Do-it-yourself investors like David J Adelman can find plenty of information on money management topics from respected publications, classic books, and online forums.

4. They are a source of information

Financial professionals are a source of information about the financial products available to you. They will explain each option’s pros and cons, helping you align with your goals.

Financial professionals might also be referred to as brokers or stockbrokers, depending on the type of products they sell. Investors should check whether their registered financial professional is a broker or investment advisor by running their name through BrokerCheck.

5. They are a source of investment advice

Financial professionals provide investment advice, such as recommending mutual funds and helping clients set up asset allocations that align with their risk tolerance. You can find these professionals by searching the SEC’s Investment Adviser Public Disclosure database and BrokerCheck.

Some financial advisors are fiduciaries, which means they must act in your best interest. Others work under a suitability standard and may earn compensation through commissions on products they recommend.

6. They are a source of retirement advice

Financial professionals have various titles, such as financial planner and wealth manager. Experts suggest finding one who operates on a fee-only basis. This means they don’t earn commissions and, therefore, do not have any conflicts of interest.

Research shows that retirees perceive value in advice more than workers do. This may reflect that they have more complex financial needs than those still working.

7. They are a source of tax advice

Financial professionals help you navigate tax laws, from investing in your 401(k) to filing taxes. They can also offer you advice on other topics like insurance and estate planning.

Depending on their licenses, registered financial professionals can sell you mutual funds, bonds, or securities. They often earn commissions on products they sell you. They may also charge you service fees by the hour or annually.

8. They are a source of insurance advice

Financial professionals are finding younger generations, including Millennials and Gen Z, to be receptive to working with them. They often want trustworthy advice on retirement, investing, and insurance.

However, many professionals sometimes must disclose how they’re compensated for their services. Whether they work on a commission basis or sell products can be unclear to consumers. They also may need to be qualified to provide the advice they claim to offer.

9. They are a source of investment advice

Financial professionals can provide investment advice for your short- and long-term goals. But it would be best to choose where you get this advice.

Some advisors are fiduciaries who work in your best interest, while others are nonfiduciaries who must sell products that are “suitable.”

Check out an adviser’s compensation model and strategies by requesting their Form ADV Part II. You can also use the SEC’s Investment Adviser Public Disclosure tool.

10. They are a source of retirement advice

Financial professionals can advise on many aspects of retirement planning, including debt management, budgeting strategies, and a savings plan for both the short and long term. They can also help with retirement investment strategies.

Tip: When choosing a financial professional, research their background and credentials. Look for a fiduciary standard, and consider whether they charge a single, bundled fee or a percentage of your assets managed.

Final Words On Financial Professionals

Financial professionals perform many important duties in our society and economy. Make sure you work with or hire an experienced pro to get the most out of your money.