Top 10 Errors Made by Financial Advisors and How to Avoid Them

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Financial Advisers can have great opportunities and be real assets to their communities, but they can fall prey to avoidable mistakes. Mistakes 1 through 6 cover ethical concerns and 7 through ten cover business strategy and personal concerns.

1) Making uninformed judgements.

In order to stop mistakes, be sure to double check appropriate rates and information about the product(s) you are selling.

2) Fraudulence

In order to avoid fraud, go into your appointments with the attitude that you are going to do what is ideal for the client whether or not you make the sale.

3) Signing an application with fields left blank.

Make sure that the application is completely filled out before signing it.

4) Requiring a check in the adviser’s name.

This should never be done, because premiums or payments from clients belong to the organization under which the agent is employed and should never be intermingled with the adviser’s personal records.

5) Putting unnecessary pressure on the customer.

Good sales agents can close a sale without using coercion. Always look out for the client’s best interest.

6) Failing to disclose probable pitfalls of an investment product

The agent is always obligated to disclose all factors 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 roles and how to assist the community better. Good ways to do this are by studying books and attending seminars.

8) Forgetting to seek out new business

Even when financial agents are successful, they should always be making relationships with potential new clients 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 advisors are active in seeking out new customers, they must have a can-do attitude that will help preserve them during dry periods. Ways to foster a good attitude are to read motivational books and to set aside time to do things they find enjoyable.

10) Neglecting to find a coach.

Financial advisors need a good support system in place, because oftentimes they work alone. A good mentor can act as a trainer and a sounding board with whom younger financial advisers can share their joys and frustrations. Financial advisers should contact their supervisors for ideas on how to find a mentor.

About the author: A. B. Mulvey blogs for financial advisor career, her pastime blog she uses to share her expertise to assist people handle the facets of economic advisory.

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