The role of a financial consultant is to support people through major financial decisions in life and, in some cases, help to advise on smaller but more regular financial investment decisions. Clients will want help at some of life’s major milestones, such as when planning investments to provide for a family, or when looking ahead to retirement. They may also need support at some of the most challenging moments in their lives, for example when managing financial affairs following a family bereavement.
Sound financial planning can make a huge difference to people’s lives, as it can enable them to live comfortably and fulfil their dreams.
What Does A Financial Consultant Do?
As a financial consultant, you should aim to make your clients feel empowered to make informed decisions, supported by your experience and expertise. You will start by spending time with your clients to understand their needs and financial aspirations. You then provide your clients with the information, tools, and solutions they need to work towards those financial goals within specified timescales. If the goals of your clients are not realistic, you will need to explain why and work to adjust their expectations.
Major financial decisions for individual clients include:
- Saving to purchase a property.
- Learning how to start investing.
- Saving for college fees.
- Managing finances for divorce.
- Retirement planning.
- Inheritance planning.
There are many different types of financial consultant roles. Some financial consultants are employed by financial institutions or large corporations, while others are self-employed. You may work exclusively with individual clients, or your work may involve acting as a financial adviser to corporate clients.
The skillset required for each type of role is largely the same, but there are some additional skills that independent financial consultants need in order to run a successful business, and other skills required for working in financial analysis for corporate clients.
Qualifications
Studying for an online MBA program is an ideal way to prepare for a career as a financial consultant. At Spring Arbor University, the fully online MBA program is highly flexible, allowing you to continue your career while you undertake your postgraduate studies. On a part-time basis, the program can be completed in as little as 18 months. The online MBA offers five concentration options, including organizational consulting and management.
Certifications and Licenses
Consultants who sell financial products such as investments or insurance will need to have the relevant mandatory certifications and licenses. If you plan to become an independent financial advisor, you may need to register your firm with the Securities and Exchange Commission.
Skills and Experience
If you don’t already have relevant experience to build on, you could consider applying for an internship to gain work experience in the sector while you complete your MBA.
Attention to Detail
Financial matters require a high level of accuracy and attention to detail. This is important for making calculations, as well as for considering any legal aspects. An error in calculations could make a recommended course of action invalid or could inadvertently misrepresent a financial position. Failure to comply with relevant regulations can have differing but equally severe consequences, so attention to detail is an essential skill in many aspects of the role of a financial consultant.
Communication Skills
One of the key skills a financial consultant should have is being able to translate complex financial data and concepts into readily accessible information which all your clients can understand. Some clients will have a high level of financial knowledge, while others will have very little understanding of financial matters. You must be able to cater to all levels of financial literacy. Those who have the least knowledge of financial products and economics will require the highest level of support at the explanation stage, but they may prove to be quicker to make decisions as they lean into your advice and rely on your expertise more readily than clients who believe they have a greater understanding.
Confidentiality
Clients will be sharing their private financial details with you. It is essential that you keep this information in the strictest confidence, only sharing what needs to be given to financial institutions or other organizations such as government agencies, as required to meet regulations such as anti-money laundering.
Data Analysis
You will need to be very comfortable with crunching numbers and analyzing data for this role. You will work through volumes of product options, assessing which are the best to suit the needs of your clients. Some of this can be automated, but there may still be a need to review how details such as terms and conditions compare, so you can ensure that your recommendations are suitable for the needs of your clients.
Financial Expertise
A comprehensive knowledge of financial markets, combined with a respected qualification, are must-haves for a career as a financial consultant. Changes in the financial markets, the economy and regulations occur commonly. Therefore, if you want to be successful as a financial consultant you will need to keep your finger on the pulse and regularly refresh your knowledge to ensure you can give clients the most up to date information available.
Integrity
Clients need to feel that they can trust that you are giving them the best advice. If you have a track record of serving clients well, ideally with testimonials, you will be able to demonstrate that you give advice which can be relied upon, and that you are working in the best interest of your clients.
Patience
In many cases, clients will be making major financial decisions, and they may not feel comfortable making those decisions quickly. Unless there is a genuine need for urgency, for example a borrowing decision being made in a period of rapidly increasing interest rates, it is important to give clients the time and space they need to reach their decision at a pace that suits them. Your patience may also be called for with some clients in explaining how products work, factors which need to be considered, and relevant regulations.
Relationship Building and Management
An ability to reach out and make new connections is an important skill for a financial consultant. You will need to be personable and show that you are interested in your clients through strong relationship-building skills. When you work with individuals, you may learn many details about their lives from conversations you have with them.
Additional Skills For Independent Financial Consultants
In addition to these skills, which are required for all financial consultants, there are some extra skills which you will need if you are going to work as an independent financial consultant rather than being employed by a financial institution or corporation. If you operate independently you will need to have the basic skillset required for all small business owners, including the following skills.
Sales and Marketing Skills
As an independent financial consultant, you will need to find new clients and develop your own client base. In a large organization you will usually be provided with sales leads and even a relationship management team, particularly for high-value clients, whereas when you work independently, you have sole responsibility for finding clients by making people aware of the services you offer and building and maintaining client relationships.
Time Management
Time management skills are important for everyone, but never more so than when you run your own business. With no manager to hold you accountable, you need to be highly focused and prioritize effectively.
Accounting
As a financial consultant, you would naturally be expected to have good basic accounting skills as a minimum. However, when running your own business, it can be easy to be so focused on managing your clients’ finances that you neglect your own. If you don’t have the time to keep your own bookkeeping on track, be sure to contract this work to a third party so that your own finances are kept in order.
Working as a Financial Consultant
When working as a financial consultant, you can expect a generous salary and a rewarding career ahead of you.
Salary Expectations
As a personal financial adviser, you can expect to earn a median annual salary of $94,170, according to the Bureau of Labor Statistics, with higher level salaries for financial consultants rising to over $159,000 per year according to Indeed. Salaries may be affected by factors such as geographic location, your experience in the role, and the type of clients you work with.
Rewarding Career
Being there to help your clients plan for future events and guide them through the big financial decisions in life can be very rewarding. Many financial consultants work with their clients over the course of many years, developing a strong relationship, with clients knowing they can put their trust in you. There is a great deal of variety within the role, with every client having a different set of financial circumstances and their own individual requirements which need to be considered. The challenge of finding the ideal financial solutions to meet varying needs makes the role all the more interesting.
If you are interested in pursuing a career as a financial consultant, it is time to explore your best study options to get the qualifications you need. An online MBA gives you the best of both worlds, so you can continue to earn and gain valuable work experience while studying to enhance your level of qualifications and advance your career.
