Why would anyone want to become a financial advisor?
Does it have something to do with the fact that you are your own boss? Or maybe because it is one of the few ways available to earn an above-average income? Maybe it has nothing to do with money and everything to do with helping others achieve their financial aspirations.
To be honest, it does not matter what your reason is. The truth is that few of those starting out in this industry will ever make the grade. Many would say that the golden age of selling insurance is a thing of the past. In some ways, they would be correct. According to a survey done by the FIA way back in 2014, 72% of their respondents were older than 50 with 20 or more years of experience.
But why do financial advisors struggle so much in the beginning?
The industry has gone from little to no regulation, to one with increasing regulation. Regulation has been good because it removes ‘lone wolves’, but it has also placed an onerous burden on the advisor. Advisors are now faced with a dilemma. How do I get to see more clients while spending most of my time doing paperwork? Not only that, but clients are far more aware of costs than ever before. Advisors, more than ever before, need to justify their fees by earning their keep.
Do you want to hear the truth?
Being on your own is unsustainable if you want to grow your business. There are only so many new clients you can see while still maintaining contact with existing clients, all while keeping up to date with administration, ongoing training, and the latest regulations.
At some point you will need support whether it be advisors working for you, paraplanners preparing financial plans for you, administration staff to handle your paperwork, or compliance staff keeping your processes up to date with everchanging regulations. Without these, sooner or later, you will drop the ball.
And to really put the nail in the coffin; there is no way to afford all of the above when you are just starting out. There’s hardly enough money in the beginning to pay yourself, never mind a staff.
So how do you become a successful financial advisor?
First off, you join a team of experienced people who have walked down the same path. They will teach you a proven system on how to manage your practice and find your ideal clients. You need the backing of a legal and compliance department to make sure you never put a foot wrong.
Then you need product training and marketing support. Imagine always having a product specialist on speed dial when sitting in front of a client? Or how about earning an above-average remuneration package way better than being on your own.
How does this offer sound?
If you are an experienced financial advisor & are interested in hearing more about this position, simply submit your details below.
Old Mutual Life Assurance Company (South Africa) Limited is a Licensed Financial Service Provider.