Top Ten Mistakes Made by Financial Agents and How to Prevent Them

The following is a guest post created by Ashley B. Mulvey who writes for financial advisor career advice , her interest blog she uses to share her knowledge to assist people cope with the facets of economic advisory.

Financial Advisers can have great careers and be real assets to their communities, but they can fall prey to avoidable faults. Mistakes 1 through 6 cover ethical concerns and 7 through 10 cover business strategy and personal concerns.

1) Making uninformed choices.
In order to prevent mistakes, be sure to double check proper rates and information about the product(s) you are offering.

2) Fraud
In order to stop fraud, go into your consultations with the attitude that you are going to do what is ideal for the customer whether or not you make the sale.

3) Signing an application with fields left blank.
Make sure that the application is fully filled out before signing it.

4) Asking for a check in the adviser’s name.
This should never be done, because premiums or payments from clients belong to the company under which the adviser is employed and should never be intermingled with the adviser’s personal records.

5) Putting unwanted pressure on the client.
Good salespeople can close a sale without using coercion. Always look out for the client’s best interest.


6) Failing to disclose probable problems of an investment product
The advisor is always obligated to disclose all factors of a financial product, regardless of whether the customer chooses to purchase it.

7) Forgetting to learn
Financial advisors should always be learning more about their functions and how to serve the community better. Good ways to do this are by reading books and attending conferences.

8) Forgetting to seek out new business
Even when financial agents are successful, they should always be making interactions with potential new customers so that their business will succeed in the long run. Ways to do this are through referrals and participating in trade shows.

9) Forgetting that a good mindset is vital
Even when financial advisers are active in seeking out new customers, they must have a can-do attitude that will help sustain them during dry periods. Ways to foster a good attitude are to read motivational books and to set aside time to do things they find enjoyable.

10) Neglecting to find a mentor.
Financial advisors need a good support system in place, because oftentimes they work alone. A good tutor can act as a mentor and a sounding board with whom younger financial advisers can share their joys and frustrations. Financial advisers should contact their supervisors for ideas on how to find a mentor.

And you also? What are the top faults made by financial advisors?

About the author: Ashley B. Mulvey writes for financial advisor career advice , her interest blog she uses to share her knowledge to assist people cope with the facets of economic advisory.

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