The Difference Between an Advisor and a Salesperson

One of the biggest challenges for pre-retirees and retirees is finding the right person to handle their investment portfolio in retirement. It can seem like a daunting and stressful task to choose a financial professional to manage your life savings, but educating yourself on your options is a great first step. Learn about the differences between a salesperson and an advisor below.

You are welcome to look up the legal definitions, but this article focuses mainly on practical traits that truly make someone an advisor and, more importantly, a trusted advisor.

One of the most important differences between a salesperson and an advisor is the ability to listen to and understand a client’s unique financial situation. An advisor typically hosts an initial meeting, which should involve the prospective client describing their financial situation and the advisor asking clarifying questions to help fully understand their needs. In the first meeting, the client should do most of the talking while the advisor listens intently and takes notes.

If the prospective client desires a follow-up meeting, the advisor should prepare and provide a detailed proposal. This proposal should include a transparent list of fees the client would pay. All financial professionals get paid one way or another, a true advisor is upfront about the costs of their services.

Then, the financial professional should explain why his or her recommendations make sense based on current market conditions and the client’s unique financial situation.

If a client decides to move forward with a business relationship, they should define their expectations for the financial professional going forward. A true advisor will respect the client’s wishes because they are interested in earning their trust.

Becoming a trusted advisor takes years of hard work and a genuine concern for the client. There are no shortcuts. Market conditions and financial situations are constantly changing. A trusted advisor will be proactive in contacting you with ideas based on current market conditions and your unique financial situation. If a financial professional cannot explain why their proposed changes make sense, they are not an advisor. If any change will involve an additional fee, the financial professional needs to be upfront about the fee.

One of the biggest keys to enjoying retirement is feeling confident in your financial plan. Having an advisor who has earned your trust over time goes a long way to having a fulfilling retirement. If you don’t have a trusted advisor and are looking for someone who is willing to put in the time and effort to earn your trust, please give our office a call.

Jason Egge is a Financial Advisor with Securities America Advisors, Inc. Securities offered through Securities America, Inc., a Registered Broker/Dealer, Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Bankers Trust, BTC Financial Services, a division of Bankers Trust, and Securities America are separate entities. Check the background of this investment professional on FINRA’s BrokerCheck. Not FDIC Insured. No Bank Guarantees. May Lose Value. Not a Deposit. Not Insured by Any Government Agency.