5 reasons I love this profession

I was just at Schwab’s Impact conference and ran into a neighbor from home who recently entered our industry. He had been a high school principal for his first career and decided to go into wealth management for a new career.

As we talked, he gushed about how much he loved our industry. His enthusiasm was contagious, and as a more-than-three-decade veteran of advising, it made me think about the reasons I enjoy being a financial planning professional.

First, it humbles you. Your reaction may be to think I'm nuts for listing humility first, particularly in an industry with so many big egos. However, there's nothing like the sobering humility of losing a client money.

Granted, most losses in a portfolio are temporary. But it's still quite a challenge to meet with a client, perhaps shortly after a retirement rollover, and explain why they shouldn’t worry about a $200,000 decline in their portfolio.

Even though one of the key values we provide is guiding people through turbulent markets, there is nothing more motivating than when a client, particularly a new one, is frightened and blames you.

Second, advising fosters deep connections. Planning is so personal. To guide a client, we must get to know them intimately. We learn about their family, their hopes and dreams, their career highs and lows, their failures, and shortcomings.

There are not many professions that lead to this level of familiarity.

Third, advising is intellectually stimulating. A couple of years ago, my wife and I purchased a hot tub. The salesperson was excellent! She knew the product, was great at “trial closes,” and helped us make a choice quickly.

While I admired her professionalism, for me, the issue with the one-time sale of a straightforward product is both the lack of relationship building and probably not a lot of personal growth. What is so incredible about our profession is there is an endless stream of current information we must absorb and navigate, new tools that become available almost weekly and the markets being impossible to predict, and you must be proactive and nimble because the future is so uncertain.

Unlike some professions that can be mastered with relative ease, ours requires the adviser to always remain in learning mode.

Fourth, our interests align with those of our clients. I love the fee-based model because when I do well, my clients do well. Further, the economics are such that I must work diligently to serve my existing clients well. My success is based upon my client’s success, not based upon a product or service sold.

Lastly, the economics are undeniably great. Let’s not kid ourselves, this profession can be lucrative. There are not many like it that can provide this much flexibility while also producing a terrific income.

Of course, advising is not an easy profession. In fact, I have known far more people who have failed at it than have been successful. But I am grateful to wake up every day still excited for work, and I look forward to continuing to do this for many years to come.

Scott Hanson is co-founder of Allworth Financial, formerly Hanson McClain Advisors, a fee-based RIA with approximately $16 billion in AUM.