How to Thrive in Spite of an Imminent Threat to the Advisory Profession

Image by Alex Knight on Unsplash

Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

Advisors are highly qualified, although few clients are capable of understanding the difference in your credentials.

Does it matter?

While obtaining a Certified Financial Planner designation is becoming ubiquitous, it doesn’t come close to the expertise required to earn a Ph.D in Finance, a C.P.A., an MBA or a CFA.

Do prospects or clients care? Should they? Should you?

It matters but...

Technical expertise matters. A competent advisor can meaningfully improve the lives of their clients.

Expertise is critical to establishing cognitive trust, which is, “based on the confidence you feel in another person’s accomplishments, skills and reliability.”

However, the emphasis on technical competence can be overdone, as explained in this thoughtful article by Rachel Mortimer in FT Adviser. It can cause you to overlook skills that are of equal (or greater) importance.