How a Financial Advisor Can Help You Invest Wisely

Investing is a big responsibility, but you can make mistakes along the way. Investing should grow your net worth, not deplete it. However, even the most experienced investors can lose money if their decision does not pan out as expected. That’s where a financial advisor can help. Financial advisors are also able to spot the mistakes of other investors. These professionals can help you invest your money wisely and maximize your returns.

Job duties

Among the many duties of a financial advisor are meeting with clients and preparing them for the meeting. He or she must also stay on top of market trends and developments. An advisor also must market his or her services, and must address the needs of each client. To differentiate themselves from competitors, an advisor must be flexible and responsive to his or her client’s needs. He or she must be knowledgeable about all the latest developments in the financial industry and be able to explain the impact of these changes on his or her clients’ financial future.

License requirements

Depending on what type of investment services a financial advisor wishes to offer, different states require different types of licenses. A Series 7 license is required to sell individual stocks, bonds, options, and futures. A Series 7 license is the gold standard in financial advisor licensing, so if you already hold a Series 6 license, you may want to consider obtaining a second license in the future. To get this license, financial advisors must pass a 250-question exam administered by the Financial Industry Regulatory Authority (FINRA). The exam can be taken in two or three-hour segments, and the financial advisor typically studies for the test in advance.

Once a financial advisor is licensed, the next step is to obtain the appropriate insurance license. Each state has different requirements, but in general, financial advisors who sell insurance must have a license. The insurance license examination is typically one to two hours long and requires a 70% score to pass. Once a financial advisor has obtained their license, they can work for a number of different insurance companies. They must maintain their own financial records and obtain the required licenses.


Most working professionals earn a salary or base salary and some other form of compensation, such as overtime, stock options, and 401(k) matching programs. Compensation for financial advisors is unique. Although some are paid a base salary, most are compensated by commissions or incentives from the sale of investment products. Here are the most common compensation types for financial advisors. A basic salary is approximately $100,000, though bonuses are common.

Some financial advisors only charge a fee and don’t sell any products. A fee-only advisor does not sell anything, but instead charges clients a fixed amount to manage their money. The fees paid by fee-only advisors are disclosed in their Form ADV, and written engagement letters detailing all fees and commissions are recommended. Fee-only advisors are better able to help clients build prosperous financial futures and are more likely to remain in business.

Centers of influence

In order to make a strong impression, your focus should be on building relationships with your centers of influence. You’ll need to interact with these individuals dozens of times throughout the year, and the most effective way to build these relationships is to be consistent. You don’t want to create a sales-like atmosphere by approaching these individuals only when you have something to sell. Instead, build strong relationships by leveraging these people’s relationships.

Once you have developed relationships with your digital nomad of influence, you’ll need to take initiative in your marketing efforts. Most center of influence relationships wait for you to take the initiative. You’ll need to lay out marketing strategies and protocols. Most COIs are not marketing experts, so they rely on the referral of a current client to provide a good path. In this case, you’ll likely delay the opportunities to expand your practice and attract mutually beneficial clients.


A financial advisor has a reputation in many circles. While most of them are ethical and knowledgeable, there are some whose primary focus is their commission rather than your best interests. A competent financial advisor is continually educated about new products, laws, and tax codes and is familiar with the latest tools of the trade. Unfortunately, some advisors simply don’t have the time to keep up with these changes. So, before you invest in a financial advisor, consider what his or her reputation is.

The reputation of a financial advisor is often influenced by the number of deals he or she has completed. The number of deals that an advisor has completed determines the amount of market share that this financial advisor enjoys. The average number of transactions a financial advisor executes is 49. In terms of market share, advisors with a high reputation are likely to have more mandates and higher fees. However, some advisors have low reputations and have high market shares.


The age of a financial advisor can be misleading. Many advisors are career changers and may appear young, but have decades of experience under their belt. They might be passionate about their work, but don’t be fooled by their youthful appearance. The best way to determine the level of experience in a financial advisor is to ask them about their background and their experience in the field. They may have the credentials to back up their claims and have a long list of satisfied clients.

People who are good with numbers should be good at problem-solving. Financial advisors have to help their clients deal with problems and make smart financial decisions. They also need to have a broad knowledge of the industry and know the different types of financial products and accounts. These skills are invaluable in advising clients on the best financial strategies. In addition to having an MBA, a bachelor’s degree in accounting can help an advisor’s career advancement.