Ten Major Mistakes Made by Financial Advisors
March 14, 2011
Financial Advisors can have great careers and be real assets to their communities, but they can fall prey to preventable errors. Mistakes 1 through 6 cover moral concerns and 7 through ten cover business strategy and personal concerns.
1) Making uninformed choices. In order to eliminate mistakes, be sure to double check correct rates and information about the product(s) you are promoting.
2) Scams In order to reduce fraud, go into your consultations with the attitude that you are going to do what is best for the customer whether or not you make the sale.
3) Signing an application with fields left blank. Make sure that the application is totally filled out prior to signing it.
4) Requesting a check in the adviser's name. This should never be done, because premiums or payments from clients belong to the enterprise under which the adviser works and should never be intermingled with the adviser's personal accounts.
5) Putting unneeded pressure on the client. Good sales agents can close a sale without using coercion. Always look out for the client's best interest.
6) Failing to disclose probable problems of an investment product. The agent is always obligated to disclose all aspects of a financial product, regardless of whether the client chooses to buy it.
7) Forgetting to learn. Financial advisors should always be learning more about their roles and how to help the community better. Good ways to do this are by studying books and attending meetings.
8) Forgetting to seek out new business. Even when financial advisors are successful, they should always be making interactions with potential new clients so that their business will succeed in the long run. Ways to do this are through testimonials and participating in trade shows.
9) Forgetting that a good mindset is vital. Even when financial advisors are active in seeking out new customers, they must have a can-do attitude that will help preserve them during dry periods. Ways to foster a good attitude are to read inspirational books and to set aside time to do things they find enjoyable.
10) Neglecting to find a coach. Financial advisers need a good support system in place, because oftentimes they work alone. A good coach can act as a trainer and a sounding board with whom younger financial advisers can share their joys and frustrations. Financial advisers should contact their supervisors for ideas on how to find a mentor.