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Successful advisors have certain traits: experienced, strategic, analytical, proactive and resourceful.
But what makes a great advisor?
A great advisor has natural comprehension, intuition, empathy, and compassion.
That is why women make exceptional financial advisors.
Comprehension
Merriam-Webster defines comprehension as "the act or action of grasping with the intellect" and "the capacity for understanding fully." As advisors, it's important to stay informed about an entire world of knowledge: ever-changing tax laws, stock market trends and everything in between. Advisors must effectively comprehend their clients' situations to make informed recommendations and decisions.
Intuition
Did you know science backs up the phrase "a woman's intuition?" According to this study, MRI scans showed that female brains have more neural connections and are more efficient. This data supports the idea that women are good at interpreting social phenomena and cues.
In his book, The Intuitive Investor, Jason Voss, CFA, discussed how intuition is the key that, "allows investors to identify what unique data are relevant from a nearly infinite sea of information." Being able to intuitively navigate the often-confusing world of finance is crucial for any successful financial advisor.
Empathy
We all know the stereotype: Women are too emotional. But when it comes to making financial decisions, a little emotion goes a long way. Our emotions are wrapped up in every financial decision we make, and while we discourage making impulsive financial choices based solely on emotion, acknowledging and asking yourself what and why you're feeling a particular way is a healthy part of money management. Women are natural empaths. They will be able to put themselves in someone else's shoes and understand what that person is feeling.
Compassion
Women are naturally compassionate. While closely linked to empathy, compassion means being able to recognize someone's suffering and feeling a desire to help them.
It makes sense that a client would feel comfortable with an advisor that was able to put themselves in their shoes.
Bridget Grimes and Katie Burke co-founded Equita Financial Network out of a need to fuel business success while empowering other women in the financial services industry. Equita became the first platform solely focused on women-led financial planning firms, designed to encourage women to make the leap into launching their own practice and provide solutions to support them every step of the way. And importantly, Equita is a way for like-minded women to not only share resources and run their business at an affordable cost, but to also share ideas on everything from best practices to help with questions regarding client issues.
Read more articles by Bridget Grimes, Katie Burke
Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
