- Understanding Common Financial Advisor Regulations
Financial professionals are subject to regulation to ensure that they’re following industry standards at all times. Several organizations are responsible for establishing and enforcing financial advisor regulations in the U.S. If you’re interested in a career as an advisor, it’s important to understand the guidelines that you’re expected to adhere to. SmartAsset’s Advisor Marketing Platform can… read more…
- Using a Risk Curve to Simplify Retirement Planning for Clients
Risk is an important consideration when helping clients shape their retirement plans to achieve the outcomes they desire. One tool you may rely on to help clients visualize potential outcomes is the risk curve. In simple terms, a risk curve illustrates the tradeoff between risk and reward. When used in a financial planning context, risk… read more…
- Example of How to Build a Strong Financial Advisor Resume
Whether you’re looking for your next role as a financial advisor or your first one, a carefully crafted resume is a must in a competitive job market. If you haven’t updated your resume in a while or you’re creating one for the first time, it’s helpful to know what to include that will grab a… read more…
- What Is Storyselling for Financial Advisors?
Increasing sales is a common goal for advisors and the way you approach your marketing plan can have a direct impact on outcomes. Story selling is an increasingly popular strategy for promoting services and products to clients in an approachable, relatable way. If you’ve struggled to gain traction with marketing, learning story selling for financial… read more…
- What Is the CFP Capstone Course?
Acquiring a Certified Financial Planner (CFP) credential could broaden your career horizons and help you grow your book of business. There are several requirements financial professionals must meet, including completing the CFP Capstone course. The course is designed to enhance your knowledge and skillset in preparation for working with clients and is required for all… read more…
- RIA Code of Ethics SEC Requirements for Advisors
The Code of Ethics Rules is one of many U.S. Securities and Exchange Commission regulations that financial advisory firms must follow when they register with the federal agency. This rule, which was implemented in 2004, establishes the standards of conduct and behavior for registered investment advisors (RIAs) to promote integrity, transparency and accountability. Want to… read more…
- Understanding the Funding Ratio of a Defined Benefit Plan
While traditional pensions are on the decline as more employers opt to offer defined contribution plans to employees, they haven’t disappeared entirely. If you have clients who anticipate receiving a pension in retirement, it’s important to understand where those benefits might fit in. Funding ratio is a key consideration when evaluating the financial health of… read more…
- Types of Direct Indexing Solutions for Advisors
Direct indexing is an investment strategy that aims to replicate the performance of a stock index by investing in the underlying securities that the index is composed of. Assets are held in a separately managed account which can open the door to greater tax efficiency through loss harvesting. Advisors may turn to direct indexing providers… read more…
- Pros and Cons of an Investment Manager Career
Investment management can be a demanding profession but one that may offer lucrative rewards. Financial managers earned a median annual salary of $139,790 in 2022, according to the Bureau of Labor Statistics. Is investment management a good career path for beginners in the financial services industry? It could be for advisors who have the experience… read more…
- Front vs. Middle vs. Back Office Functions for Advisors
Operations at financial advisory firms are often segmented into three specific parts for financial advisors: front, middle and back office functions. These are essential for streamlining operations, ensuring efficiency and enhancing productivity. Getting all three parts right can help you grow faster and better serve your clients. SmartAsset’s Advisor Marketing Platform can help you add… read more…
- 5 Ways Financial Advisors Can Breach Fiduciary Duty
Fiduciary duty is a legal obligation of a person or entity to act in the best interest of another party, typically a client. In the context of a financial advisor, this duty requires them to prioritize the financial goals and interests of their clients above their own, even when it might be more profitable for… read more…
- What Is the SEC’s Pay to Play Rule?
A core part of running an advisory business is ensuring that your practice complies with regulatory guidelines set by the Securities and Exchange Commission (SEC). One such guideline, Rule 206(4)-5 or the SEC pay-to-play rule, governs what advisors can and can’t do when making contributions to political campaigns. Advisors who violate this rule could find… read more…
- Popular Financial Influencers for Advisors to Follow
Financial influencers or ‘finfluencers’ have proven to be a popular, though unconventional, source of information and education for people who are interested in learning more about money. While many of the top influencers tailor their content to investors and everyday consumers who are navigating the realm of personal finance, some speak directly to the interests… read more…
- What Are the Know Your Client Rules for Financial Advisors?
Financial advisors are required to meet certain standards when adding new clients to their book of business or selling regulated products to existing clients. Under Know Your Client (KYC) rules, advisors must confirm clients’ identities while assessing suitability and risk. These rules fall under the umbrella of anti-money laundering (AML) practices that banks and other… read more…
- 8 Tips for Assessing Your Client’s Risk Tolerance
Do you know how much financial risk your client can comfortably handle? Risk tolerance, is an important measure in financial planning that reflects how much a client is willing to endure in potential financial losses. It can establish the level and type of investment risk that a client can handle, making it an essential component… read more…
- How to Grow Wallet Share By Targeting Held Away Assets
If you’re looking to grow your business as a financial advisor, often the best place to start is within your own shop. While recruiting new clients is important, developing your relationship with existing clients is also crucial for your advisory business. By increasing the amount of each client’s assets that you manage, you can both… read more…
- Understanding the Life-Cycle Approach for Your Clients
Life cycle financial planning is a multi-stage approach to helping your clients build and manage wealth. As clients age and experience life changes, their financial goals and needs may evolve, which in turn can affect the type of advice you offer. Understanding the financial planning life cycle can help you prepare for each new phase… read more…
- 7 Investment Books Every Advisor Should Read
Knowledge is a powerful asset and one that requires ongoing cultivation as an advisor. Devoting time to reading books about investing is one way to expand your expertise so that you can better serve your clients while becoming a savvier investor yourself. With so many books to choose from (and so little time in your… read more…
- Key Technology Every Wealth Manager Should Consider
Incorporating technology into your advisory practice can help save money and increase efficiency, leaving you with more time to focus on your clients. Navigating the wealth management technology landscape may seem a little intimidating, but embracing the right tools could transform your business. Here are some of the most important types of wealth management tech… read more…
- How to Leverage Google Ads as a Financial Advisor
Digital marketing has become increasingly important for advisors as more investors turn to search engines to connect with financial professionals. Investing in Google Ads can effectively increase your business’s visibility and attract new clients if you know how to use them. Understanding what a Google Ad campaign might be able to do for you can… read more…
- 9 Entry-Level Jobs to Help You Break Into Wealth Management
A successful career in wealth management demands patience, perseverance and continuous learning. And, for those willing to put in the effort, the wealth management industry can offer rich rewards. Here are nine popular entry-level jobs that can help you get into and develop your experience in wealth management. Ready to grow your advisory business? SmartAdvisor… read more…
- 5 Financial Psychology Certifications for Financial Advisors
Financial psychology certifications can demonstrate expertise in the ways that psychology and personal finance intersect in a client’s attitudes, beliefs and behaviors that influence their financial decisions. These certifications can differentiate you in a competitive marketplace and potentially lead to increased income and credibility. Ready to grow your advisory business? SmartAdvisor can connect you with… read more…
- How a Chief Compliance Officer (CCO) Can Help Your RIA Firm
A chief compliance officer (CCO) is a member of your firm’s team who can help protect your business from potential legal or regulatory issues. Registered investment advisors must have a CCO serving at the firm, but hiring an experienced one could make a huge difference and avoid potential penalties, fees or lawsuits that could cost… read more…
- What Is Tax Drag and How You Avoid It for Your Clients
Tax drag refers to the negative impact that taxes can have on the overall return of an investment or a portfolio. It’s calculated as the difference between the return on an investment before taxes and the return after taxes. Tax drag is a crucial concept for financial advisors to understand and manage, as it can… read more…
- What It’s Like to Work as a Financial Planner
Entering a career in financial services can offer plenty of opportunities for advancement and high earning potential. Some professionals work as financial advisors while others choose to work as financial planners. While the titles sound the same, there are some differences in what a financial planner job entails. Add new clients and AUM at your… read more…