Starting out as a young financial advisor is no easy lift.
Take the uphill challenge of building a book of business from scratch.
You’ve leveraged your network of friends and family, and now you’re stretching to cut through the noise of everyday digital distractions to impress prospects. You’re in an advisory firm trying to learn from the same seasoned professionals you’re hoping to impress. You’re also gaining hands-on experience in the industry's complexity and learning how to comply with its regulatory requirements.
Looking back on their beginnings in the business, several advisors say that young professionals can build a successful practice with less pain by honing their communication skills, pursuing continuous education, cultivating a solid network, and prioritizing integrity.
They’ve shared their top tips with Action! Magazine to help young financial advisors establish themselves as credible, reliable and knowledgeable professionals ready to guide clients through their financial journeys confidently and clearly.
Develop strong communication skills
Effective communication is the cornerstone of any successful relationship, especially in the financial advisory field. Developing this skill is essential for young advisors, as it fosters trust and empowers clients to make informed financial decisions confidently.
Clients often come with varying degrees of financial literacy, and many feel overwhelmed by industry-specific terminology and complex investment strategies. By clearly and concisely explaining these concepts, advisors bridge the knowledge gap, making clients feel heard, respected and fully informed about their financial futures.
Active listening is equally vital. When advisors take the time to understand their clients’ unique needs, aspirations and concerns, they can offer guidance that resonates on a more personal level. This involves more than just hearing words – it’s about picking up on tone, intent and unspoken worries. By attentively listening, young advisors gain a complete understanding of their clients, allowing them to provide advice that aligns with individual circumstances and goals.
Improving communication skills is a continual process. Practice with colleagues or mentors, role-playing client scenarios and seeking constructive feedback on their approach. Observing experienced advisors can also offer valuable insights.
Over time, advisors can become adept at reading nonverbal cues, such as body language and facial expressions, which reveal a client’s comfort level, doubts or hesitations. Adapting to these cues helps advisors maintain open, responsive conversations that keep clients engaged and invested in their financial journey.
“No two clients are the same,” says Colin Day, a wealth advisor at Mercer Advisors based in Chesterfield, Missouri. “I talked to a prospective couple last week, and we were just cracking jokes most of the time because we already had a comfort level where we were vibing back and forth. Another family meeting we had with some prospective clients was much tighter-knit. It was a completely different way to communicate, more of a thought leadership strategy as opposed to understanding the emotions of the person.”
Day recommends that advisors be flexible in their communication with clients. “If you only work in one particular way – you'll attract only a certain kind of client and it will probably take a lot longer for you to grow.”
Cultivate a growth mindset
A growth mindset is essential for continuous improvement and long-term success in any profession – it's particularly important in financial advising, where adaptability and learning are crucial.
Young advisors should embrace challenges as valuable opportunities to expand their skills, deepen their knowledge and ultimately become more effective. By being open to new ideas and approaches, advisors position themselves to thrive in a role that demands flexibility and a commitment to lifelong learning.
“The advisory role is a difficult job,” says James Diver, a partner and private wealth advisor at Procyon Partners in Melville, New York. “You need to know a lot of different things and do a lot of different things. You have to view it like an athlete approaches a sport. It's not just about one event or one call, or one portfolio decision. It's about continuously prepping for those phone calls and those prospect meetings. That's how you take the growth mindset and actually execute on that.”
It's also about “making yourself indispensable – doing the things that no one else [in the office] wants to do,” says Patrick Kilbane, partner and wealth advisor at Ullmann Wealth Partners, citing the philosophy of baseball executive Theo Epstein who helped the Boston Red Sox and Chicago Cubs win World Series victories after decades-long droughts. If you succeed when taking on those responsibilities, you will be rewarded with more responsibilities and grow in the job, according to Kilbane, who’s based in Jacksonville Beach, Florida.
The financial industry is constantly evolving, influenced by shifts in technology, regulatory updates and global economic changes. Advisors who are proactive about staying informed and adaptable will be better equipped to serve clients with relevant, forward-thinking guidance. Formal education, industry seminars, and self-study are all excellent avenues for staying up-to-date, but young advisors should also seek real-world learning opportunities. Engaging in industry roundtables, joining professional associations or participating in online courses on trending topics can all contribute to a well-rounded, informed approach to advising.
Additionally, certifications such as the CFP (Certified Financial Planner) or CFA (Chartered Financial Analyst) are not just credentials – they signify a strong commitment to the profession. These certifications enhance credibility, giving young advisors the knowledge and confidence to succeed.
Build a strong network
Building a robust professional network is invaluable in the financial advisory business. Networking can open doors to new opportunities, provide valuable insights and help you stay informed about industry developments.
Attend industry conferences, join professional organizations and interact with peers on social media platforms. Make sure to expand your network beyond just financial professionals. Connect with professionals from related fields such as real estate, law and accounting. These relationships can lead to referrals and collaborative opportunities that benefit everyone.
“Developing a strong professional network is extremely important because there is now a high demand for comprehensive financial services,” says Andrew Blake, associate director, wealth management at Cerulli Associates.
A strong network of other professionals will not only help you serve current clients but also help expand your reach for prospective ones.
Procyon’s Diver says his firm is “connecting with every client's attorney, CPA, insurance provider or insurance salesman in a friendly way to collaborate and work together. We're always trying to cross-sell and cross-collaborate, and many times these various professionals become our centers of influence and referral partners.”
One thing young advisors need to keep in mind is the fact that not all networking is digital. “It becomes a big challenge for folks to convert their mind from more of a digital presence to a physical presence,” says Mercer Advisors’ Day.
In-person events at the Chamber of Commerce or Rotary Club, as well as financial conferences like Schwab Impact and financial educational presentations, are all prime networking venues for advisors, requiring your physical presence.
Actively engage in local community events, as they can lead to valuable introductions to potential clients and partnerships. It also allows you to build trust and establish a positive reputation by showing genuine interest in supporting local initiatives and connecting with people outside formal business settings.
“Make sure you're putting your face out there and people are seeing you on a consistent basis,” says Landon Warmund, a certified financial planner and certified student loan professional at Reliant Financial Services in Kansas City, Missouri.
When networking, remember that relationships take time to develop and nurture. Be genuinely interested in others, ask thoughtful questions and offer value where you can. Your network will grow naturally as people recognize your sincerity and dedication to the profession.
Define your niche and brand
In a competitive industry, having a clear niche and personal brand can set you apart from other advisors. Identify the specific demographics or types of clients you want to serve and tailor your services to meet their unique needs.
This specialization can make you more attractive to potential clients looking for an expert who understands their financial challenges and goals, whether young professionals, retirees, business owners or families planning for education expenses. Defining your niche also allows you to streamline your marketing efforts, focusing on channels and messaging that resonate with your target audience.
Your brand should reflect your values, expertise, and the quality of service you provide, helping clients understand what you do and why you do it. Consistently communicate your brand message across your website, social media and client interactions to establish a robust and recognizable presence in the market.
Social media platforms like Instagram, X (formerly Twitter) and LinkedIn can also help you reach a broader audience, especially if you share accessible, relevant information tailored to financial needs and lifestyles. A well-established brand differentiates you from competitors and builds trust, making clients more likely to refer your services to others.
Focus on client education
Empowering clients through education is a powerful way to foster long-lasting relationships. By helping them understand the basics of investing, financial planning and budgeting, you give them confidence in their financial journey.
Use newsletters, webinars, and social media to share educational content that aligns with your clients' interests and needs. Educational content such as tips, market updates and client success stories can reinforce your expertise and demonstrate your commitment to empowering clients.
Warmund, who specializes in helping K-12 teachers manage their student loans, hosts regular webinars and in-person events for teacher organizations.
“We'll have anywhere from 40 to 50 people come and we provide food and go over the three typical topics that most teachers struggle with in terms of finances – saving for retirement, their pensions, as well as student loan forgiveness.”
Clients who feel informed are more likely to stay with you for the long term and refer you to others. Educational initiatives show that you’re not just interested in their money but are genuinely invested in their financial well-being.
Use technology to your advantage
Efficient time and client management are crucial in financial advising, as they directly impact the quality of service you provide and your overall productivity.
Utilizing customer relationship management (CRM) software can significantly enhance efficiency, allowing you to organize client information, track communications and schedule follow-ups seamlessly. A CRM tool helps ensure you never miss an important deadline or client interaction, fostering stronger relationships through timely and relevant communication.
“What does technology mean for the financial planning community for younger advisors? It's, of course, everything,” says Day, adding that the usage of technology in advisory firms has accelerated post-COVID. “Having a base level understanding of what a CRM is, as opposed to running your office out of an Excel spreadsheet, is a necessity.”
So is a positive attitude to learn apps that young advisors might not be familiar with or adept at. “Some people have the experience, some people don't, and some people understand that weakness and are very willing to be trained to learn it,” says Diver. That's the right attitude.”
Those with a broad knowledge of the apps that advisory firms use could prove their worth if they learn how those apps can connect and work together. “We often struggle with the connection between the software apps and how they can run seamlessly so that would be extremely valuable for a future advisor coming into the industry,” says Warmund.
Wealth management technology, such as portfolio management and goal-based planning, can also streamline your practice, enabling you to dedicate more time to personalized client interactions and strategic planning.
Consider automating routine tasks, such as monthly reports, appointment reminders and email follow-ups. Automation saves you time and reduces the likelihood of human error, ensuring that clients receive consistent updates and communications. This efficiency allows you to focus on higher-value activities.
Leveraging technology early in your career will set you up for long-term success. Familiarity with various tools and platforms can enhance your analytical capabilities, enabling you to provide data-driven insights to your clients. By streamlining your processes and embracing technology, you can deliver consistent, high-quality service, ensuring your clients feel valued and informed at every stage of their financial journey.
Learn from experienced advisors
Mentorship can be a game-changer. Seasoned advisors can offer insights to young advisors on client management, strategies for dealing with market downturns and ways to handle ethical dilemmas.
Many financial advisory firms offer mentorship programs, and some professional organizations provide networking and mentorship opportunities designed explicitly for new advisors.
Learning from those who have successfully built their careers can accelerate your growth and help you avoid common pitfalls. Be bold and ask questions; most experienced professionals are more than willing to share their knowledge and support the next generation of advisors.
“Find a mentor who wants you to succeed, a partner or a senior advisor at the firm who is really invested in your success,” says Diver. “Your success is their success.”
In time, young financial advisors can establish themselves as credible, reliable, and knowledgeable professionals ready to guide clients through their financial journeys.
