Challenges of Financial Advisor

Today I am going to write about Financial Advisor

A Financial Advisor’s job is to help people, to safeguard and secure his future by levering money management skills. However, due to some fraudulent incidents – people’s decision get affected which hampers (honest) advisors in the financial industry.

The job of a Financial Advisor is indeed a tough one. While working out money for clients he has to face many challenges. I thought I’ll just name a few and go over it to raise awareness.

  1. Advisors are assumed more as  a financial Marketing Executives irrespective of their experience and degrees; we (advisors) need to educate people about this profession, this will also help us to raise the bar of respect which some are still struggling with.
  2. Fees” is other issue. Many clients feel that the fees charged are very high and they prefer going to brokers who might cost lower but they have to compromise with the personalized services.
    The advisor fees generally includes making a plan & portfolios, reviewing & monitoring charges with cost of conveyance, research, reports, printing, information &related materials and other misc. expenses. This is an ongoing process & managing a portfolio with diverse investments requires continuous efforts and time. Advisors are unlike salesperson who works for commissions as they are driven by targets. It’s not that “more transactions shells out more commission”.
  3. Money matters are always Stressful and managing someone else’s money is much more stressful as it involves additional responsibility and risk. Everybody is cool when it works out well but when market has negative impact, the blame goes to Financial Advisor J. Handling such situations is a stressful task. An ethical and honest advisor always follows the rules and communicates about risks involved with investments and market.
  4. Often time’s clients do not give full and correct information about their funds and investments. This can cause problems while making a right plan. In such cases, if a plan fails blame goes to advisors. There’s loads of material available about how to choose a right financial advisor. But nobody discusses and understands the real life situations and problems of a financial advisor. The relationship between an advisor and his client is based on trust and Communication. It’s a long term relationship which will work out well when both help and communicate in correct way! That’s it for now.


The views and ideas expressed in this article are solely of author and do not necessarily reflect ideas in general. The views and ideas are not meant to hurt anyone. Assumptions made are purely of author.



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