The Changing Role of the Advisor | Financial Advisors Best Practices

There are certain professions that come with high levels of trust. Doctors, Lawyers, and even barbers need to be trusted by their clients to make sure the outcomes are positive. As a financial advisor, you’re right up there with the most trusted of professions. After all, what could be more important than managing assets and making sure there’s enough money to last into retirement?

How the advisor’s role is changing


Baby Boomers will soon make up the largest cohort of retirees in the nation. They will also be the wealthiest members of society and that wealth will need oversight. The role of the financial advisor is changing from simple “consultant for hire” to a member of close circle of trusted individuals.

In situations where you have high net worth retirement accounts, you may find yourself answering questions and consulting on situations that you never dreamed of. Wearing the hat of not only financial advisor, but other roles that deal with family, health, money and all the details that come with it.

As your clients age, serious life events, familial issues, medical problems, are certainly in store for you. While these undoubtedly can be intimidating, remember: make decisions for your clients as if it were your own money. How would you like your finances handled in tricky situations? While this may not be perfect for every situation, it’s a good rule of thumb to build and retain trust with clients and their families.

Build relationships with the family

Spouses, children, friends and other family members are relying on you to make sure that their loved one’s assets are around for the intended recipients to enjoy or even survive off of. It’s no small task nor are they decisions to be made lightly. Who knows how many people your management will affect?

It’s becoming strikingly evident that the role of the financial advisor for aging clients is the role of trusted confidant. Someone who can advise on multiple situations and understand how they affect wealth and happiness in the sunset years, while understanding the impacts on those in their will and other recipients of their money. Building trusted relationships with your client and their family will be a pivotal part of your practice moving forward. Make sure you’re up to the task of taking on such responsibilities before you find yourself in too deep.