Is 2024 The Year To Become A Financial Advisor?

Despite some headwinds for consumers in 2023 – inflation and rising interest rates, to name a few, it IS still a good time to become a financial advisor.

Some may even say it’s the RIGHT time. Especially with the right firm.

Here at Consolidated Planning, financial advisors stand out from the crowd thanks to a unique infrastructure of advisor support and a host of talented individuals united for a common purpose. Our humble beginnings go back to 1981 when four advisors developed and shared a philosophy about planning that put the client first, challenged conventional wisdom, and contrasted with the transactional nature of the industry.

In this article, we’ll delve into some of our top five reasons to explore a career as a financial advisor this year, common reasons financial advisors may fail, and why the right firm matters for the trajectory of your career. Afterwards, you should have a better idea if this career path could be right for you…or not.

 

Top 5 Reasons To Explore A Career In Financial Advising This Year

While there are many reasons becoming a financial advisor might be right for you this year, the below are the ones we want to highlight in 2024.

 

Growing Demand for Financial Guidance

This one couldn’t be more true or more important for the trajectory of this career path.

Despite the perspectives of some of your friends, consumers are indeed seeking financial guidance now more than ever. Whether this is due to financial uncertainty or the rising complexities of investment options, the employment outlook for personal financial advisors appears bright, with an expected 15% growth rate through 2031, according to SmartAsset.

As a new financial advisor, YOU can step in to fulfill both this growing demand and advisor discrepancy expected to happen in the coming years all while making a positive impact on people’s financial well-being.

 

Focus on Financial Wellness

Speaking of financial well-being – consumers aren’t just after any financial guidance. They are looking for an all encompassing focus on their financial wellness as a whole.

This emphasis on holistic financial wellness is gaining momentum as people are recognizing the interconnectedness of various financial aspects, including cash flow, debt and asset management, and long-term planning. 

As a financial advisor, you have the opportunity to guide clients towards comprehensive financial health, positioning yourself as a trusted partner in their journey towards financial well-being.

And that’s what makes a thriving client-advisor relationship, becoming a trusted PARTNER in this journey.

 

Retirement Planning Challenges

The demographic shift towards an aging population has intensified the need for retirement planning expertise. As baby boomers retire and younger generations plan for their financial futures, the demand for skilled financial advisors is at an all-time high. Specializing in retirement planning can be a lucrative niche in 2024, as individuals seek strategies to ensure a comfortable and secure retirement.

Moreover, according to a 2023 WSJ study, millennials are actually on track to surpass the baby boomer generation in retirement savings. While the generation born in the 1980s and 1990s has lagged behind prior generations when it comes to homeownership and earnings, new data suggests they are saving earlier and saving more for retirement.

This opportunity gives financial advisors, especially younger ones entering the industry a chance to foster long-term client-advisor relationships with retirement at the focus.

 

Diversity and Inclusion Initiatives

Like many industries you’re likely exploring, the financial industry is increasingly recognizing the importance of diversity and inclusion. Many organizations are actively seeking to diversify their workforce and cater to a broader range of clients. 

As a career changer, you can bring a unique perspective and contribute to the industry’s goal of creating a more inclusive and representative financial advisory landscape.

Afterall, financial planning is not a one size fits all approach. And financial advisors shouldn’t operate as such.

 

Technological Advancements

Technology is something that is always shifting and improving (for the most part) year after year. 

With that said, the financial landscape is no different. Financial advising is experiencing a digital revolution, making it easier for advisors to connect with clients and deliver personalized services. And seamless, personalized solutions means a more profitability practice.

This year artificial intelligence and advanced analytics are empowering financial advisors to provide more sophisticated and efficient solutions. No, AI won’t replace your job, or at least, it shouldn’t if your clients truly value your most valuable asset…your advice.

Embracing these technological tools can give you a competitive edge in 2024, allowing you to streamline your operations and offer enhanced services to your clients. 

And that’s a win-win.

 

The Right Financial Advising Firm Can Help You Build Your Practice

Now, even with all the reasons in the world to become a financial advisor, some people just won’t make it. In fact, according to Advisor Perspectives, 80-90% of financial advisors fail within their first three years. Wow.

This failure can be attributed to several factors including:

• Lack of relationship building,
• Lack of a clearly defined target market,
• Lack of a high activity level, or
• Simply not having a strong work ethic

But the good news is, if you’re willing to work hard, 106,264 advisors, according to Cerulli, plan to retire within the next 10 years. This is about 36 percent of the total industry headcount and represents close to 40 percent of all advisory assets. And this number leaves a huge window of opportunity for new and existing financial advisors.

To take the next step in discovering this career, chat with a recruiter about what licensing you will need and if the planning philosophy at Consolidated Planning aligns with your values and goals.

 

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