Top 10 Errors Made by Financial Advisers and How to Eliminate Them
Financial Advisers can have great careers and be real assets to their communities, but they can fall prey to preventable errors. Mistakes one through six cover ethical concerns and seven through ten cover business strategy and personal concerns.
1. Making uninformed judgments - In order to avoid mistakes, be sure to double check appropriate rates and information about the product(s) you are selling.
2. Fraud - In order to stop fraud, go into your consultations with the attitude that you are going to do what is right for the client whether or not you make the sale.
3. Signing an application with fields left blank. Make sure that the application is fully 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 firm under which the agent works and should never be intermingled with the adviser’s personal records.
5. Putting unwanted pressure on the customer - Good salespeople 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 adviser is always obligated to disclose all elements of a financial product, regardless of whether the client chooses to purchase it.
7. Forgetting to learn - Financial agents should always be learning more about their assignments and how to assist the community better. Good ways to do this are by reading books and attending conventions.
8. Forgetting to seek out new business - Even when financial agents are successful, they should always be making partnerships with potential new customers so that their business will succeed in the long run. Ways to do this are through recommendations and participating in trade shows.
9. Forgetting that a good frame of mind is vital - Even when financial agents are active in seeking out new clients, 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 tutor - Financial advisors need a good support system in place, because oftentimes they work on its own. A good coach can act as a coach and a sounding board with which younger financial agents can share their joys and worries. Financial advisors should contact their supervisors for ideas on how to find a mentor.
About the author:
A. Mulvey contributes articles for www.financialadvisorcareer.net, her hobby blog she uses to share her expertise to assist people cope with the facets of financial advisory.