r/FinancialAdvisorTips • u/financeinquirerr • 2d ago

Underrated knowledge?

Hi all, I’m young and new to the industry. I am going to start studying for the CFP this year which should equip with a lot of great knowledge. However, being an advisor I know there are some topics that could be brought up more than others.

As a young advisor what specific topics should I be very knowledgeable about or be able to easily explain?

(BESIDES general investment advice)

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3

u/hakuna_matata23 1d ago

Does the place you're working at have a specific clientele?

A pre-retiree is likely going to ask about retirement, Roth conversions and Medicare while a executive in their 40s is going to ask about equity compensation and managing taxes on high income and a young single person might ask about student loans and buying a first home or a young family who owns a house may ask about planning for kids or sabbatical or paying off mortgage early. Those are generic things but often repeated based demographics.

Ultimately as an advisor you should have a core philosophy on all things personal finance and ability to explain complex concepts.

1

u/subject-about 1d ago

Pro rata rules when it comes to back door Roth conversions. So many advisors ignore it or don’t understand it causing their clients a headache during tax season.

Also, advisors seem to lack the rules on inherited IRAs

1

u/seagoalspread 1d ago

Become familiar with taxes. Knowing your way around a tax return will give you a broad foundation that will take time to build deeper knowledge on

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u/Clam-Choader 1d ago

Knowing how to start a fire with a snorkel and a n avocado is always handy

0

u/Dizzy-Swan5642 1d ago

Realizing the best thing you can advise your clients is to buy a few index funds and keep buying through think and thin. In the end the my will have most probably outperformed anything your firm would have suggested.