Finance professionals with their own practices have more than just their clients’ finances to look after. Learn more about how to excel as an advisor and business owner.
Introduction to Practice Management
Frequently Asked Questions
How much does it cost to have a financial advisor?The cost of seeing a financial advisor will vary depending on what your goals and needs are. If you just want to create a budget and select a target date fund to invest retirement savings, you can do that relatively quickly with an advisor charging around $100/hr. If you have funds to invest and you’d like an advisor to manage it for you, they may charge over 1% of your assets under management annually.Learn More: What Fees Do Financial Advisors Charge?
Can a client sue their financial advisor?Yes, clients can sue their financial advisor for negligence or malpractice, including breaches of fiduciary duty and regulatory noncompliance. Advisors can protect themselves from unexpected and costly claims by getting professional liability insurance.
Are financial advisors allowed to sell life insurance?Yes, financial advisors are allowed to sell their clients life insurance policies. Life insurance policies make financial sense for a lot of people, which is one reason financial advisors will recommend these policies. Though it is also true that advisors who sell life insurance can receive large upfront commissions and annual commissions of 3% to 5% for the remainder of the policy’s term.Learn More: Why Financial Advisor Sell Life Insurance
How much do financial advisors make?The average salary for a financial advisor in the United States was about $120,000 in 2021.Learn More: Financial Advisor Career: Pros and Cons
Investment Adviser Registration Depository (IARD)The Investment Adviser Registration Depository (IARD) is an electronic system through which investment advisors register themselves and file required reports and disclosures with the U.S. federal Securities and Exchange Commission (SEC) and with state-level regulators.
Brochure RuleThe brochure rule, otherwise known as rule 204-3, requires all financial advisors and brokers to provide their clients with a written disclosure statement outlining the services they offer and their terms and conditions, before working with them.
Best-Interest Contract Exemption (BICE)A Department of Labor rule, vacated by federal courts in 2018, that allowed financial institutions that both trade securities and give investment advice the ability to earn variable compensation, such as commissions and some kinds of revenue sharing.
Blanket RecommendationA recommendation to buy or sell an asset that a broker or other financial institution sends to all its clients, regardless of their investment objectives.
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How Radical Transparency Can Help Independent Advisors Boost Success
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What Financial Advisors Were Grateful for in 2020
Explore Practice Management
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The Changing RIA Landscape and What Advisors Need to Know
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How to Help Retired Clients Weather a Market Downturn
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How to Take a Mindful Approach to Your Advisory Practice
How Technology Is Changing Financial Advice
Trust: A Financial Advisor's Most Important Asset
10 Must Watch Documentaries for Finance Professionals
How Financial Advisers Can Protect Themselves Against Lawsuits
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Advisors: What Does Your Future Hold?
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Transition Planning: Include the Whole Family
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Do Financial Advisors Prepare Tax Returns for Clients?
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What Advisors Need to Know About Rule 3210
Should You Add a Securities License to Your Qualifications?
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10 Best Tools for Financial Advisors
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Where to Find the Ideal Client for Your Practice
Investment Adviser Registration Depository (IARD)
Tips for Assessing a Client's Risk Tolerance
Top Tips for Young Financial Advisors
Talk About Financial Constraints to Your Clients
How Financial Advice Can Boost Your Returns
Top Reasons Why Advisors Should Go RIA
Tax Tips for Financial Advisors
Why Clients Fire Financial Advisors
Best-Interest Contract Exemption (BICE)
What Fees Do Financial Advisors Charge?
Advisors Falling Short on Succession Planning
Practice Management Guide for Financial Advisors
What Should an Aspiring Financial Advisor Major In?
What the 'De Minimis' Exemption Means
Top Compliance Headaches for Financial Advisors
How New Financial Products are Created
Why Financial Advisors Sell Life Insurance
4 Ways to Connect with Clients on LinkedIn
5 Ways Advisors Can Increase Sales on Life Insurance
How to Measure the Success of Your Financial Advisory Practice
Preparing for an Initial Client Meeting
What Advisors Must Know About Professional Liability Insurance
Maintaining Work/Life Balance for Finance Professionals
Manage Your Clients' Expectations
4 Ways To Build Your Client Book
Tips on Selling Your Financial Services Business
Career Advice: Financial Planner or Wealth Manager