4 Common Financial Advisor Mistakes and How to Avoid Them


70 percent of financial advisors were performing transactional activities on paper in 2019.

Today, most financial advisors are still reluctant to adopt modern technology. Unfortunately, their refusal to keep up with the times only makes their work hard. They struggle to maintain proper client records and acquire new clients.

As a financial advisor, you should carry out a self-audit to find out all the mistakes you’re making.

To help you out, here are four common financial advisor mistakes and how to avoid them.

1. Underrating Smaller Clients

It’s logical to think you need to chase after only high-net individuals to make a killing as a financial advisor. So, you make the fatal mistake of ignoring smaller clients who’re in dire need of your expertise. To avoid this mistake, you need to see the bigger picture and realize all clients matter.

Search for financial advisor client acquisition tactics that target different groups of people. Having a diverse clientele will challenge you to become a great financial advisor.

2. Trying to Help Everyone

Becoming a financial advisor is exciting, and you can’t wait to showcase your expertise to different people. You even give unsolicited financial advice to strangers claiming you’re promoting yourself. Unfortunately, trying to help everyone is overwhelming, and soon you’ll struggle to keep up.

People will start showing up at your home or office for free financial advice. To avoid this mistake, understand it’s impossible to help everyone.

3. Ignoring the Competition

The other financial advisor mistake you’re making is assuming no one else is prospecting clients. And that’s why you feel there’s no need to invest in financial advisor marketing. If you don’t market your financial advisory practice, you’ll struggle to attract new clients.

In addition, you risk your clients being snatched from you by other financial advisors. To avoid this mistake, undertake market research to pinpoint your competition.

4. Becoming a Pushover

As a financial advisor, you feel you must make all your clients happy. You’re willing to do things far beyond the financial advisor duties. Sadly, some clients will take advantage of you if you don’t set boundaries.

They’ll ask you to do things you feel are wrong and later blame you for doing them. Although financial advisors should be flexible, learn when to say NO to your clients. Avoid doing things that are outside your work scope.

Avoid Common Financial Advisor Mistakes to Grow Your Practice

To grow your financial advisory practice, you must anticipate challenges and learn how to handle them. Review the above common financial advisor mistakes and learn to avoid them. You want to know the right client acquisition tactics to use.

Also, find friendly ways to interact with clients as a financial advisor without becoming a pushover. Finally, stop trying to help everyone; instead, focus on your financial advisory practice clients.

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