Why I Quit Being a Financial Advisor

Working as a financial advisor can be stressful; sometimes you might feel that you’re constantly juggling multiple tasks and clients. Online searches for phrases like “Why I quit being a financial advisor” or “Should I quit my job as an advisor?” turn up plenty of firsthand accounts from professionals who walked away from their role or the industry for one reason or another. If you don’t want to find yourself at a similar crossroads, it can help to understand some of the most common – and avoidable – reasons advisors quit.

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State of the Financial Advisor Industry

A look at the advisory industry sheds some light on what drives advisors to quit.

On a positive note, the Bureau of Labor Statistics (BLS) estimates job growth outlook for financial advisors at 17% through 2033. Approximately 27,000 job openings for advisors are projected each year. The downside? Some of the projected job growth is driven by a need to replace advisors leaving their roles.

That’s something quite a few advisors contemplate. According to the latest J.D. Power Financial Advisor Satisfaction Survey, 34% of employee advisors and 41% of independent advisors say they may not stay with their current firm for the next one to two years.

According to the survey, the number of advisors who believe their current firm is headed in the right direction is decreasing. Interestingly, job satisfaction among employee advisors increased over 2023’s numbers, while satisfaction among independent advisors declined.

Meanwhile, new recruits are coming into the industry, but they aren’t all succeeding. It’s estimated that the failure rate among rookie advisors is just over 70%. Understanding what the environment is like for advisors can offer some clues as to why many of them quit.

“Why I Quit Being a Financial Advisor” – Top Reasons

A financial advisor explaining why they quit being a financial advisor.

Advisors may choose to change roles or exit the industry for a variety of reasons. Some may be more common than others. Here are nine often-cited reasons advisors change roles, switch companies or leave the industry.

1. Unrealistic Expectations

Working as an employee advisor can be challenging, especially if your higher-ups have different expectations of you than what you’re capable of delivering. Sometimes this can happen if there’s a disconnect about what your role in the firm is. Other time, maybe there’s a miscommunication about the types of tasks you’re skilled at handling.

Unrealistic expectations can also dampen your enthusiasm for your business if you’re an independent advisor. You may set goals for yourself that seem achievable, but aren’t. When you fail to reach those goals, you may question your ability or desire to continue running the business.

2. Poor Work-Life Balance

Poor work-life balance is a common side effect when there are no clear boundaries, or you’re facing those unrealistic expectations we mentioned earlier. Your firm might expect you to work longer hours. Or maybe your clients assume that you’re available to take their calls 24/7.

This type of situation can lead to burnout and a drop in energy, productivity and interest in your job. Continuously high stress levels associated with burnout may affect your physical health, which can make it that much harder to carry out your duties.

3. Low Pay

Financial advisor jobs have a reputation for being high-paying, but roles – and pay scales – are not created equally. If you feel that the amount of time and effort you’re putting in isn’t coming back to you in the form of a larger paycheck, you might consider quitting.

That’s something else you may struggle with as an independent advisor if you’re working on building out your client base. The first few years can be challenging as you establish your brand. And the hours you put in may be disproportionate to the revenue you generate.

4. Lack of Freedom

Working as an employee advisor has some perks, but it can also be limiting in certain ways. If you feel stifled by your work environment, the services you provide or the clients you help, you may consider striking out on your own as an independent advisor.

Independent advisors can determine which clients they want to work with. They can decide how to structure their fees, where to locate their offices and how to market their businesses. Getting started isn’t always easy, but the freedom and flexibility can outweigh the initial hurdles.

5. No Opportunity to Advance

Feeling like you’re stuck in your role can be discouraging if you’re hoping to explore other opportunities within your company. You might be limited to making lateral moves, which can change the nature of your job, but not your pay.

Quitting might seem like a good option if the role that you have now doesn’t align with the one you eventually hope to reach.

6. Workplace Culture

A toxic workplace culture is another reason advisors quit their jobs.

You might work in a firm where senior advisors routinely condescend to junior advisors. Or perhaps there’s an unhealthy level of competition between you and your colleagues. The worst advisory firms have workplace cultures in which inappropriate behavior is allowed to flourish at the expense of the employees.

Those are all reasons advisors consider moving on or moving out of the industry.

7. Organizational/Tech Inefficiency

The most successful advisory firms embrace technology and leverage it to their advantage. They have well-developed workflows that increase efficiency and productivity while reducing overhead costs. There are clear lines of communication in place and advisors always know what they need to be doing and when they need to do it.

A firm that’s the exact opposite – disorganized, technologically behind, chaotic – can be a nightmare for advisors who want to serve their clients to the best of their abilities.

8. Skill Mismatch

In an ideal world, advisors can fully utilize the skills they have while developing new ones. All with the goal of better serving their clients.

Advisors may quit if they feel that they’ve been wedged into a role that doesn’t fit their skills, or that their firm doesn’t encourage them to acquire new skills. It’s frustrating, and once frustration sets in, it can be difficult to feel as if you’re able to move ahead.

9. Not Enough Clients

You need clients to be successful, and when you just don’t have them, it’s enough to make you want to throw in the towel. A lack of clients can result from a poor marketing strategy, not having a clearly defined niche or failure to actively follow up on the leads that you generate.

It can be particularly discouraging for newer advisors who are just entering the industry. If you’re unable to land your first clients quickly, it may be harder to build confidence that can sustain you through the ups and downs.

How to Avoid Quitting as a Financial Advisor

Working as a financial advisor can be extremely rewarding, not only financially but emotionally, especially if you genuinely enjoy helping people reach their goals. If you’re 100% certain it’s the right career path for you, these six general tips can help you stay committed:

Invest in yourself by learning, developing new skills and participating in enriching events like financial advisor conferences. These are all ways to stay engaged and interested in the work you’re doing.
Be exactly what your ideal clients need instead of trying to be everything to everyone. Focusing on a specific client base allows you to home in on the areas of financial planning you’re most interested in, while fully utilizing your skills.
Emphasize client outcomes, not revenues. The fastest way to get burned out with any job is to chase the money instead of asking yourself why you do the work that you do. When you prioritize outcomes, that can lead to more money if your clients are so satisfied that they’re sending a steady stream of referrals your way.
Put yourself on the agenda. Quiet-quitting became a trend for a reason – employees are tired of being overworked and underappreciated. Prioritize regular time for yourself, whether it’s in small increments each day or one larger chunk each week. Take off your advisor hat and decompress.
Automate your workflows and marketing, so you have more time to focus on clients. Using an online marketing platform, for example, can help you connect with leads without taking time away from other tasks.
Conduct regular audits of your business and ask yourself what’s working and what isn’t. Look for areas where you can improve efficiency, cut costs or simply free up a little extra time for yourself each month by setting firm boundaries with your employer or your clients.

Bottom Line

An advisor writes a list of reasons for why they quit being a financial advisor.

There’s no one answer to the question of why someone quits being a financial advisor. These tips can help you recognize potential warning signs, and address them proactively so your career continues to thrive.

Tips for Growing Your Advisory Business

Your clients need your attention, but your marketing plan does, too. Without a solid marketing strategy, you could see your flow of leads dry up. Working with an advisor marketing platform can free you up, without resulting in missed opportunities. SmartAsset AMP is designed for growth-focused advisors who prefer a holistic approach to marketing. Schedule a demo to learn how you can use it to grow your business.
Starting a financial advisor business takes some planning to understand how much money you’ll need to invest and how to market your firm to attract clients. You’ll also need to ensure that your firm is properly registered if you’re opening an RIA. Talking to a business consultant can give you a better understanding of what you may need to get your new firm up and running.