Helpful Tips to Become a Financial Advisor

You need to be able to do more than manage money if you want to be a better financial advisor. While the monetary aspect is critical, your most vital consideration and priority should revolve around serving your clients better. While it is not an easy task to accomplish, understanding some tips to become a better financial advisor will help you achieve your goal.

To become a better financial advisor, you have to be up to date and never stop learning. Because the financial markets worldwide are continually changing, financial advisors always have to learn new things and skills to stay relevant. You need to be aware of several things as a financial advisor, and these things change periodically, such as government regulations. Your value to your customers can be improved by subscribing to industry journals, attending conferences, and engaging in other activities that will help you stay on top of research and industry trends.

To be a better financial advisor, you should know your customers better by developing a personal relationship with each of them. Having a good rapport with your clientele is key to attracting new clients and gaining referrals from current ones. “Know your customer” is an unspoken rule for financial advisors to prevent money laundering and assure the acceptability of investments for financial advisors. Hence to be a better financial advisor, you need to check up on your clients and know some rather basic information about them.

Social media can be helpful when it comes to making better connections with your clients. If you haven’t connected to your clients through social media, you should consider doing it. Especially if you have many clients, reaching out to them and talking to them will be easier by applying social media. It is an easier and more accessible way of networking. The more you learn about your customers, the better you can serve them.

Further, you can be at the forefront of your client’s mind by establishing a system for regularly sending out scheduled professional emails and posting on social media. As a financial advisor, you can easily stay in contact with your networks without spending hours a day on social media marketing with the help of automated marketing systems on social media platforms and other modern-day applications. This would make you a time-efficient and better financial advisor.

Focusing and specializing in a specific area may help you become a better financial advisor. As a financial advisor, you need to identify your target audience and tailor your services to them. There are numerous advantages to targeting a specific type of client, such as relating better with them, among other things. Through specialization, prospects can be found and connected more easily. Further, specializing will enable you and your clients to share similar interests, and with this, you’ll be able to serve them better.

To become a better financial advisor, your customers must comprehend the investment strategy you are proposing and feel confident that they are on course to meet their financial objectives. To ensure that you and your clients are on the same page, break down concepts to them as much as feasible.

Many financial advisors try to impress their clients with complicated charts and vocabulary that they are not familiar with. But what your clients are looking for is what you’re offering and how it will help them achieve their desired outcomes. The best way to help them is to be straightforward and concise.

Ways to Improve Financial Proficiency

To be a successful executive and build a successful business, having sound knowledge and expertise in finance is imperative. Businesses revolve around numbers, whether in profits, sales, costs, or investments. Thus, taking a position of responsibility in any corporation or organization would require knowledge of the financial implications of whatever actions or decisions one would need to make. Asides from the business world, individuals are becoming more in control of their finances, and there is a constant need to make financial decisions.

The first step in improving one’s finance proficiency is realizing that there is no age limit or restrictions. Financial knowledge would always benefit individuals and businesses as long as they have to make financial decisions, and there are many ways for a person to attain this. The most obvious of which would be to get proper education in finance. Taking a class at a college or adult education center on subjects that would help improve your proficiency in finance is a great idea. However, using an online college or taking online courses might be more convenient for those who prefer to learn from home. Finance is a pretty broad field, so it would be necessary to determine what area or field one would first like to gain more profound knowledge. For example, for those that own or run a business, a course in financial modeling can be beneficial.

Another way to boost one’s financial proficiency is to read. There are several resources from which to gain information and knowledge on finance. A person can access several books on every topic with a local bookstore, online store, or library. Aside from books, merely reading magazines, financial newsletters, and newspapers can go a long way. By diligently reading publications on financial news and topics, a person can pick up lots of information; This is especially beneficial as magazines and newspapers cover an extensive range of topics and provide current information. Attending seminars and listening to podcasts is also advisable. Some seminars are organized by or usually involve stakeholders in the field, who provide practical knowledge for those looking to improve their proficiency. Podcasts are especially beneficial since a person can listen to them conveniently at the comfort of their home while doing chores or running errands.

When seeking knowledge in a field, it is always a great idea to speak to an expert, and finance is not left out. Once a person has attained solid knowledge in finance, they can gain even more in-depth knowledge by speaking to a finance expert on the matter. Having basic knowledge also allows a person to know the right questions to ask and measure how helpful their advice would be. Professionals have expertise in various aspects of finance and can guide a person in enhancing their literacy. Due to technology, this is even easier and more efficient. People can easily access these professionals online and even have the opportunity to reach the ones outside their locality.

Especially for those with limited financial education, having to take responsibility for the finances of oneself, family, or business may be more tasking than it seems. Luckily, there are numerous resources to fill in this gap. Technology allows easier access to resources through the internet and various finance tools and apps. Although relatively new, finance apps can go a long way in sorting certain aspects of one’s finances. Like facilitating transactions, computing taxes, and even providing some learning tools.

Asset Allocation Strategies

Asset allocation is an investing strategy in which investors split their portfolios among several asset classes to reduce risk and maximize returns. Many financial experts believe that asset allocation is critical in determining investment portfolio performance. The concept behind asset allocation is that various assets with inherent risks perform differently in different market and economic situations.

An asset class is a collection of economic resources with relative risk and return characteristics. Although there is substantial debate over how many types of assets exist, many market experts and financial consultants split assets into five categories: equities, bonds, cash, real estate, and futures. The most liquid asset classes, and the most quoted, include stocks, bonds (fixed-income instruments), cash or marketable securities, and commodities.

Alternative asset classes include real estate and valuable merchandise such as artwork, stamps, and other trade collectibles. According to some analysts, cryptocurrency, venture capital, and hedge funds are all examples of alternative investing. However, illiquidity does not indicate a lower return potential. It simply shows that finding a buyer to convert the asset to cash may take longer.

There are many investment allocation strategies. Dynamic asset allocation is the most common investment strategy. It allows investors to modify their investment proportions based on market highs and lows, as well as economic gains and losses. Unlike other asset allocation portfolios, dynamic asset allocation portfolios maintain a high exposure to their original asset classes. However, unlike other asset allocation portfolios, dynamic asset allocation portfolios adjust their positions over time in response to changes in the economic environment.

Another investment allocation strategy is the constant-weighting asset allocation. The constant-weighting asset allocation is a buy-and-hold strategy. Investors buy more of a stock when it loses value and sells when it increases in value. Investors here ensure that the proportions do not deviate more than five percent of the original mix.

Tactical asset allocation is a strategy in which an investor takes a more active approach to asset allocation, attempting to position a portfolio into assets or individual equities with the greatest potential for perceived gains. Tactical strategies are frequently traded more aggressively and are free to move totally in and out of their core asset classes. In contrast, original asset mixes are created similarly to dynamic portfolios.

The age-based asset allocation is another example of the investment allocation strategy. In this investment strategy, the investment decision is made based on the age of the investors in age-based asset allocation. As a result, most financial advisors advise clients to base their stock investment selections on subtracting their age from a starting point of 100. The investor's life expectancy determines the amount. The higher one's life expectancy, the more money they put into risky investments, such as the stock market.

Another allocation investment strategy is the life-cycle fund asset allocation. The life-cycle funds' allocation, also known as targeted-date funds allocation, are asset-allocation funds that automatically alter the percentage of each asset class as the planned retirement date approaches, lowering risk. In practice, this typically means a rise in the share of bonds and other fixed-income assets. It is also used to maximize their return on investment (ROI) based on criteria such as their investing goals, risk tolerance, and age. However, due to challenges with standardization, this type of portfolio structure is complicated.

Series 63 - Exam Layout Information

Lisa Detanna is a Beverly Hills, California resident who has served as a senior investment manager with Raymond James since 2011. In this capacity, she focuses on financial planning and investment advice as well as the protection of assets through insurance. Lisa Detanna also holds Series 7, 63, and 65 securities licenses.

The Series 63 Exam or Uniform Securities Agent State Law Exam is a mandatory exam for professionals who intend to work as broker-dealer agents for security investors. Series 63 license is awarded to candidates who pass the exam as they have demonstrated a thorough understanding of fiduciary responsibilities and ethical principles. In addition to the Series 63 test, the FINRA SIE, as well as either the Series 6 or Series 7 exam are required co-requisites that must be passed before a candidate may seek to register as a broker-dealer agent with a state.

The Uniform Securities Act of 1956, as well as the NASAA Statement of Policy and Model Rules, are required reading for test candidates. The fundamentals of state securities regulations and rules banning dishonest or unethical acts are covered in the Series 63 test. 45 percent of the questions are about rules, 10 percent about administrative procedures, 20 percent about customer communication, and 25 percent about ethical practices and corporate duties.

The test consists of 60 multiple-choice questions. The passing mark is 72 percent, or 43 questions out of 60. Candidates must finish the exam within 75-minutes.