Unlocking Career Satisfaction: A Guide for Financial Advisors

It’s been estimated the average person will spend 1/3 of their life at work. As a financial advisor, your career is not just a job; it's a significant part of your life. However, if you find yourself feeling dissatisfied or overwhelmed, it's essential to take a step back and address the root causes. The financial advisory profession can be demanding, but it can also be immensely rewarding.

In this blog, we'll explore the critical aspects of career satisfaction and provide insights into achieving it. We'll discuss the latest data on financial advisor job satisfaction, the common sources of unhappiness, and most importantly, how outsourcing can be a game-changer for your career.

So, if you're ready to rediscover the joy in your profession, let's dive in. 

New Data on Financial Advisor Job Satisfaction

As the average financial advisor age hits 57 in an environment shaped by post-pandemic sensibilities and market volatility, the J.D. Power 2022 U.S. Financial Advisor Satisfaction Study observation that attrition is an issue among financial advisors should come as no surprise. Similarly, a recent article ranking happiness/ well-being by industry saw “finance and insurance” take last place when it came to assessing happiness in the ranks.

Financial Advisor Career Outlook

While there may be a morale problem among some existing practitioners, the U.S. Bureau of Labor Statistics’ Occupational Outlook Handbook indicates an above-average employment growth outlook for financial advisors. One news organization ranked “financial advisor” as sixth among the best business jobs and 21st among the 100 best jobs.

Common Causes of Financial Advisor Unhappiness

J.D. Power reports that advisors who were most satisfied cited their firm’s technology, competitive products and leadership/culture as main drivers of contentment. That being said, the struggles of entrepreneurship that accompany being an independent financial advisor can lead to stress and burnout. Among the biggest drivers of job dissatisfaction among financial advisors are:

1. Poor Work /Life Balance

Even with the advent of working remotely – or perhaps because of it – financial advisors struggle to achieve the proper balance between professional and personal time. Their dedication to serving clients can get in the way of their own health and happiness.

2. Lack of Time for Client Engagement

In a relationship-centric profession, meeting the challenges of being a financial advisor and an entrepreneur sometimes leaves little time for client interaction. As sophisticated clients demand a more customized and personalized service experience, this lack of time can lead to client attrition.

3. Keeping up with Regulatory Changes

In a heavily regulated and evolving industry, remaining current on regulatory changes and putting policies and procedures in place to ensure compliance can be stressful, time-consuming, and expensive.

4. Prospecting for New Clients/Marketing

Recruiting is the lifeblood of a financial advisor’s business. Often, the skills needed to effectively engage recruits, either via social media or events, are beyond an advisor’s skillset and require a large time commitment.

How Can Outsourcing Benefit Advisors?

Outsourcing is a business tool whereby advisors engage outside service providers to perform functions on their behalf. These third-party organizations bring expertise and resources to the services they are delivering and free up an advisor’s time to focus on relationship-building activities. Research has shown that client satisfaction is positively impacted when advisors choose to outsource some tasks. In addition, outsourcing has proven to offer other benefits to financial advisors:

1. It’s a Time Saver*

Advisors who outsource management of 50% or more of their assets saved 7.9 hours per week. Learn more about the additional benefits of outsourcing investment management.

2. It Frees up Time to Engage Clients*

One of the most common reasons advisors outsource investment management is to spend more time with their clients, with 75% of advisors allocating more time to building client relationships after outsourcing.

3. It Reduces Administrative Work

So much of an independent financial advisor’s tasks are administrative in nature, and an advisor’s time is better spent elsewhere. From client onboarding to CRM support and from account paperwork to HR support, advisors can save time and effort by outsourcing administrative tasks.

4. It Introduces Additional Expertise and Products to the Advisor/Client Relationship

To achieve scale and growth, advisors must allocate their time and resources toward high-impact, high-value endeavors. Time spent in nurturing client relationships can generate more value than the time consumed in managing investments.

5. Improved Work-Life Balance and Improved Business Metrics*

The proof is in the numbers: 95% of advisors affirm they have better work-life balance due to outsourcing. In addition, when asked if outsourcing affected their business:

• 91% reported a growth in total assets
• 84% reported higher business valuation
• 83% reported higher personal income
• 95% reported easier compliance/audit process
• 79% reported lower operating costs

6. Helps Deliver a Broader Service Offering

Outsourcing the day-to-day management of all or a portion of client assets gives advisors the bandwidth to deliver on the other services: estate planning, philanthropic planning, financial planning, trust services, cash management, and more.

*Impact of Outsourcing Whitepaper, AssetMark

3 Tasks You Can Start Outsourcing Today

When it comes to outsourcing, choosing the right partner is key. Not only is it in the best interest of your business and your clients, a recent SEC proposal covering new oversight requirements for certain outsourced services is under consideration. Knowing which services to outsource is key. Not only should your partner have demonstrated expertise in the area, it should have the resources and scale to continually invest in innovation and support.

1. Investment Management

Creating and monitoring model portfolios, asset allocation, investment research, and ongoing product due diligence are time intensive pursuits that belong in the hands of specialists whose only job is asset management. An advisor’s time is better spent on client engagement, holistic wealth management services and business development. Learn more about all the ways outsourcing investment management puts more hours back in your day.

2. Marketing and Client/Prospect Engagement

Today’s investors expect their financial advisor to deliver personalized, consistent, and transparent engagement. That’s why it is imperative to work with a firm that understands this and has the platform, products, and people to provide the support you need. tools to customize a modern, mobile-optimized website that seamlessly integrates with all your content. Learn how AssetMark’s Marketing Advantage platform can handle all your marketing, client, and prospect engagement needs.

3. Compliance

Compliance is a significant concern for all financial advisors, especially for those starting up an RIA. AssetMark’s team of experienced consultants can help guide advisors as they navigate regulatory and compliance requirements and help them maintain compliance with federal, state and local laws, as well as contractual obligations.

Take Steps to Increase Career Satisfaction

In the pursuit of career satisfaction, financial advisors must navigate a complex landscape. The demands of the profession can sometimes overshadow the passion that led you to this career in the first place. However, by recognizing the common causes of unhappiness and embracing outsourcing as a powerful tool, you can reclaim your time, reduce stress, and refocus on what truly matters—building meaningful client relationships and growing your business.

AssetMark is here to support your journey towards greater career satisfaction. Contact us today for a no-obligation consultation and discover how our services can empower you to thrive in the world of financial advising. Your satisfaction and success are within reach.