What a Financial Advisor at Wealth Management Wishes They Knew Before Entering the Finance Industry
Jessica, a financial advisor, recommends aspiring financial advisors start at an independent advisory firm ("Ria") where advisors are "fiduciaries" and compensated solely on assets under management, preventing conflicts of interest; this structure, and the lack of commissions, is a crucial aspect of the role that she wishes she had known beforehand. This approach ensures client interests are prioritized, a key learning from her career.
Financial Advice, Industry Regulations, Client Relationships, Compensation Models, Fiduciary Duty
Advizer Information
Name
Job Title
Company
Undergrad
Grad Programs
Majors
Industries
Job Functions
Traits
Jessica Roks
Financial Advisor
Wealth Management Company
UC San Diego
Na
Economics, Psychology
Finance (Banking, Fintech, Investing)
Finance
Honors Student, Took Out Loans, Worked 20+ Hours in School
Video Highlights
1. Starting at an independent advisory firm (RIA) is recommended, as they are bound by fiduciary duty and have stricter rules about compensation, which helps prevent conflicts of interest.
2. RIAs are compensated based on a percentage of assets under management, not commissions from selling specific products, ensuring client interests are prioritized.
3. Understanding the compensation structure is crucial; it impacts how advisors interact with clients and the advice they provide.
Transcript
What have you learned about this role that you wish someone had told you before entering the industry?
I would recommend to anyone who wants to be a financial advisor that they start at an independent advisory firm. It doesn't have to be a small firm, but it needs to be a firm that is not attached to a brokerage firm.
These firms are called RIAs. Everyone at these firms has to be a fiduciary. There are rules about how we can be compensated, and I think that really helps prevent people from recommending anything to clients that might not be in their best interest.
Our firm is compensated solely on a percentage of assets under management. We don't receive commissions for selling insurance or specific investment products, which is different from other places. I think that's really important, and it's something I wish I had known earlier.
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