To move up as a wealth advisor, you need to know about the markets, the life insurance, the annuities, the taxes, and the needs-analysis strategies, and that's just the ticket for admission.
The fast elevator opens for the financial professional who can say the right thing in the right way at the right time — and keep doing that.
"The differentiator among advisors isn't knowledge and expertise, and it hasn't been since the early 1990s," says Phil Buchanan, the executive chairman of Cannon Financial Institute. "The savvy advisory professionals understand that communication skills, client connections and behavioral economics engender trust at a far greater level than technical acumen."
Cannon is the Athens, Georgia-based provider of the Certified Wealth Strategist designation, a program that gets students ready to serve mass affluent, affluent, high-net-worth and ultra-high-net-worth clients.
The organization also runs and prepares students for certification through other designation programs. It offers courses and workshops on topics such as relationship management, estate and gift tax issues, retirement plan services, investments and trusts.
Buchanan has been helping to educate and coach financial professionals and advise financial firm owners on strategy for more than 30 years.
He answered questions via email about how financial professionals can succeed as wealth advisors now.
The interview has been edited.
THINKADVISOR: What do you really mean when you talk about the importance of a wealth advisor's communication skills?
PHIL BUCHANAN: Given the ease of travel (airlines) and technology (Zoom), a subject matter expert is "just around the corner." The real key to genuine wealth management is "face time."
The more times a client sees your face, the easier it is to establish rapport and develop a trusting relationship.
Shouldn't the relationships be based on an advisor's ability to help the client's manage investment risk, insurance risk and taxes?
Say you are a client of wealth solutions. You assume (and rightfully so) that your advisor is going to be technically competent.
This is no different than your interactions with your doctor.
But what sets a great doctor (as well as a great financial advisor) apart is their communication skills.
This is where trust is built, and that's what would make a world of difference.
You do believe that wealth advisors should know their stuff. What topics can help wealth advisors set themselves apart?
Some advisors may not be fully aware of the importance of being able to intelligently talk about trusts with their clients in order to better serve them holistically.
It builds trust and credibility.
Even if it doesn't fall within their area of expertise, a financial advisor can build partnerships with other established professionals who could complement their services and help them deliver even more value to clients.
That being said, some advisors may lack the confidence to bring up and address this subject.
Therefore, if they take a class on trusts, they will gain the technical understanding and acumen they need to have those conversations with clients.
How can financial professionals position themselves to go after the best new opportunities?
Candidly, "good financial professionals" don't really need to seek new opportunities.
In fact, new opportunities seek them out weekly.
The exception to this is when an advisor seeks to significantly change geographies.
It's important to keep in mind that experience with a quality firm establishes bona fides that follow the professionals wherever they wish to go.
How does hiring look to the firms doing the hiring?
Currently, there is an absolute "war for talent" in the wealth advisory space.
My advice: Carefully evaluate the communication skills of those you are considering bringing on board.
The way the financial advisor communicates can make a world of difference and impact your bottom line.
Culture matters. If you're concentrating on building a true wealth advisory practice, don't get caught up in product revenue generated with hard sales techniques.
Phil Buchanan. Credit: Richard Hamm/Terry College of Business/Cannon Financial Institute
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