The job of a financial advisor can be rewarding but just like any other job, it has its own drawbacks. So, if you are aiming to be one then there are plenty of things you need to know before you get started. Your school or institution might not tell you about these things but we are here to show you the real picture. Here, we will show you both the pros and cons of being the advisor so that, you can decide whether you are ready to take this challenge or not.
An Overview of Financial Advisor Career
Taking the role of being the financial advisor gives a number of opportunities that is not available in other career fields. Along with this, you must know by know that, the earning potential of the people from this field are unlimited, they have flexible work schedule as well as control over their practice timing.
According to the Bureau of Labor Statistics, the number of financial advisors in the United States is around 271,900. This shows that the world does not have enough advisors and if you chose to be one, you shine very fast.
This career path has a few drawbacks as well. One of the most common complaints that we receive from the people working in this field is, they do not have a social life and the working environment is very stressful. So, when you are working in this post, maintaining the proper balance of social and work life tough. In addition to this, it takes a lot of time to build a good client base. Therefore, you need to be quite sure before starting your job or else, you might leave it in halfway. This can be harmful to your career.
Pros of the Financial Advisor Career
As we said before, the benefits of the career as a financial advisor is beyond compensation. If you love your job then nothing can stop you from being successful. According to another study by the Bureau of Labor Statistics, the field of financial advisors has a growth rate of 15 percent from the year 2016 to 2024. This is very high than the average job outlook of 7%.
You must be wondering what the benefits of working in this field are. Well, here are things you will enjoy if you are aiming to work:
Offering important advice
Well, not most of the people start their career in this industry to offer meaningful advice but this is an essential aspect of this job. Consumers are very overwhelmed as well as confused while investing. They need proper guidance from someone who has skill and knowledge in this field, and who can steer them in the right direction. The greatest role that you will be playing is giving these people the right knowledge so they can make a better decision. The successes of the financial life of the clients are equals to the success of the financial advisor.
Good income potential
When you are working and providing service, you should expect a reward and in a job, your reward is the money. For most of the financial advisors, the earning potential is limitless. Yes, you heard us right. Most of the people working in this industry either work as fee-based or commission based or a combination of both. This signifies that the income is based on the number of new businesses or recurring revenues made every year. The pay structure might differ but as the advisor, you can earn a good amount of money from your work.
The flexibility of the work schedule
Finding the right balance of personal and work life is pretty difficult when you are working and the career of the advisor is not different. However, when you have established yourself as the financial advisor with a client base then, you will get the flexibility of working hours. Most of the seasoned advisors have the opportunity of scheduling their work as per their personal calendar and they can enjoy working 40 hours a week only. So, you can go on holidays and vacations once you have an established career.
While building the client base, you have the opportunity of being creative. Some advisors focus on getting as much client as they can and in such process, they lose their creativity. However, if you are a bit tactful and smart, you can easily use the technology and social media for your benefit. There are some advisors who focus on the Baby Boomer generation and some only aims for the Millennial. It is totally on the advisor in which area they want to specialize. So, if you want a particular type of clients then, figure out what your area of interest.
Cons of the Financial Advisor Career
While the pros list is pretty long and attractive, the list of cons is very short. These are some of the cons that you should consider if you are considering to work in this field.
The people working in this industry experience stress while starting their career. In most cases, you might think you are lagging behind than or you are not putting much effort. But, honestly, this industry is pretty dynamic and deeply interlinked with the performance of both global and domestic markets. Suppose, the economics are performing poorly and at that time, the clients will reach out to the advisors. In such a situation, it becomes very tough for the advisors to handle the emotion of the clients while maintaining their market.
Regulatory and compliance requirement
As a financial advisor, you must have the license to provide advice. The process of acquiring a license can be a bit tricky and lengthy. Along with this, the advisors need to complete a few training and education programs for keeping their license in good standing.
When you are thinking about a job, it is essential to keep both sides of it in mind. This helps you to choose your working area without any doubt.