Welcome to the Industry
Complete this sentence: We help people make strong _______ _______ to help them achieve their goals.
Complete this sentence: We help people make strong financial decisions to help them achieve their goals.
What is a financial advisor or wealth manager?
Interact with clients, gather information, develop recommendations and present the recommendations to clients.
What is the five-letter regulating entity for financial advisor licenses?
FINRA
Name 3 types of investment options an advisor might put a client's money in.
Individual securities like stocks, bonds, Mutual funds, Exchange-traded funds (ETFs), Real estate investment trusts (REITs), Annuities, whether fixed annuities (FAs), variable annuities (VAs) or indexed annuities (IAs) or Alternative investments.
What is the difference between investment selection and investment management?
Investment selection is choosing appropriate investments considering client goals and investment management is ongoing monitoring of those investments and their performance, making changes when needed to stay in line with client goals.
What is a portfolio manager?
Executes investment strategies by selecting and managing securities like stocks and bonds that match the strategy
True or False: Designations are required to do business in our industry.
FALSE. Designations are not necessarily required to do business in our industry, but they can act as an important signal to clients about the advisor’s knowledge and expertise in a given area.
Financial advisors use various factors to determine which investment options fit clients, including annual income, net worth, timeline to withdraw the money and ______, which we find using our RTQ.
Risk Tolerance
What is budgeting and cash flow?
Analyzing a client's income and expenses, helping them build an intentional spending and savings plan to help them reach their goals.
What do relationship managers do?
Often on the path to becoming an FA, they support the FA by acting as a point of contact for clients when they have questions between meetings.
What does CFP stand for?
The Certified Financial Planner® designation is one of the most common and best-known designations in the wealth management industry.
The alignment of the client profile and recommended investments is sometimes referred to as _______
Suitability
What is estate planning?
Intentionally planning who will receive a client's assets in the event of their death.
What does a paraplanner do?
Develops comprehensive financial plans for clients
Name one designation that isn't the CFP.
Other common designations include RICP (Retirement Income Certified Professional), ChFC (Chartered Financial Consultant), CFA (Chartered Financial Analyst), CLU (Chartered Life Underwriter), CDFA (Certified Divorce Financial Analyst), RLP (Registered Life Planner), PFS (Personal Financial Specialist), AFC – Accredited Financial Counselor
Name 2 systems/platforms that an advisor might use to do their job.
CRM, planing software, mass email system, custodian portal, eSignature, portfolio management, etc.
What is insurance planning?
How do financial advisors charge for their services?
Two ways - Commissions and Fees
True or False: Some licensing exams (similar to Series 6, Series 7, Series 65, etc.) require the individual to be affiliated with a sponsoring firm.
TRUE, though as of 2022 a student can take the SIE, 63, 65 or 66 without a sponsoring firm.
With so many systems, cross-program communication is key. What is the general term for this cross-program communication?
Integration