FA-IQ reached out to advisors to ask: How can financial advisor team leaders prepare the next generation of FAs?

Faron Daugs, founder and chief executive officer of Harrison Wallace Financial Group. Libertyville, Illinois-based Daugs has been in the industry for nearly 30 years and has $150 million in client assets.

“The financial advising industry is significantly different today than it was when I joined it 30 years ago. In large part, we have the internet to thank for that: Today’s clients can jump online and search for the financial advice they’re after with a few clicks. There’s a digital library of information available to everyone at all times, and people giving financial advice on the internet are a dime a dozen — whether they’re licensed or not. This poses a challenge to the next generation of financial advisors: How can they differentiate themselves and provide value above and beyond free resources?

It’s our duty as team leaders to help incoming advisors reframe their role and recognize their value. Many young financial advisors think of themselves simply as investment advisors, but the true role expands far beyond that — financial planning and advising encompasses all areas of a client’s financial life. It’s about cash flow, risk management, income taxes, investments, and retirement and estate planning. The onus is on us to teach the next generation of financial advisors that we’re more than just investment guides, and our relationships with our clients are about more than just 'how they did last quarter.' We bring value to every part of our clients’ financial lives — in a way that the impersonal internet never could.

Faron Daugs
A second modern challenge for new financial advisors is lead generation. A few decades ago, we were making cold calls and connecting with new clients over the phone. These days, no one’s really interested in answering the phone. That makes it much harder for new advisors to form client relationships — and as leaders, we can help them by partnering up. When a senior advisor passes some of their less-complicated client situations to junior advisors, they can run with and cultivate those client relationships, effectively building the foundation of their client base.

Lastly, I’m a huge advocate for structured training when it comes to new financial advisors. There are so many niches in this business, and it’s to everyone’s benefit for senior leaders to educate incoming advisors about those subject matters. In-depth, regular training about topics from investment planning, to estate planning, to saving for college, can really help new financial advisors identify their areas of interest and succeed in the field.

I’ve been lucky to have great mentors throughout my career, and believe we have a responsibility to pay it forward and serve as mentors to the next generation of financial advisors.”

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