5 professional development tips for advisors entering the workforce of the future

5 professional development skills for advisors in a changing workforce

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As the wealth management field changes, altering the way professionals work and engage with clients, advisors are seeking ways to adapt and develop skills to meet new demands.

The wealth management and accounting fields, for example, are becoming increasingly intertwined. An updated CPA exam emphasizes this overlap with an exam section covering financial planning and retail tax services for individuals. The test material spans 25 different tasks and skills including some applicable to planning, according to a "blueprint" guide on how to study for the CPA exam, which summarized the new questions as concerning "qualified retirement plans, investing, education funding and risk mitigation through the use of insurance."

"You can't really do a complete job of financial planning without tax being a huge part of it," Andy Watts, Avantax Wealth Management vice president of planning and growth solutions, recently told Financial Planning in an email. "Our perspective is that everyone's financial planning should be rooted in an assessment and understanding of the impact of taxes every step of the way. In fact, I firmly believe that someday, financial planning without incorporating tax planning will be considered unthinkable."

For many advisors looking to stretch their skill sets, mentorship is an increasingly vital component of professional success — especially among women. The financial industry has historically been a "boys club," with women sometimes struggling to rise through the ranks and find success in the field.

"I liken a mentor to a personal trainer — people go to the gym so somebody can keep them on track, train them and strengthen them," said Mara Derderian, a financial and risk management professor at Bryant University. "Mentors can do that to you from a professional standpoint."

Derderian served as vice president at both Citi Private Bank and HSBC Private Bank for over a decade, crediting some of her success to the strong relationships she has built with women leaders who taught her different skills and qualities she would need in her career. While Derderian acknowledges that there are fewer women in finance than men to act as mentors, mentorship programs can have a snowball effect: One mentor could be the reason several women climb up an organization's hierarchy, and those women can go on to mentor the next group of new talent.

READ MORE: Brand building for advisors: How to stand out

But no matter how prepared advisors are, the industry will always throw new curveballs. In a 2023 YouGov poll, 34% of respondents said their ideal relationship isn't completely monogamous, and 26% preferred something between complete monogamy and complete nonmonogamy.

Working with polyamorous clients can stretch advisors' skill sets, especially as U.S. tax structure and Social Security rules are designed for married couples and single people, making them potential hurdles for poly people and others in nontraditional relationship structures.

"From a technical perspective, all the tools I use have no capability for three adults in a single relationship," Danika Waddell, Xena Financial Planning founder and president, recently told Financial Planning. "The tools don't even work well for a couple that isn't married."

How are savvy advisors growing their toolkits? Catch up on our latest coverage on ways wealth managers are developing new skills to grow their careers and better support clients.

New CPA exam section highlights the ties between wealth management and tax

Certified public accountants with the personal financial specialist credential are hailing the "significant milestone" and "monumental addition" of a planning section to the CPA exam.

For the first time starting at the beginning of the year, between 30% and 40% of the questions in the "tax compliance and planning" discipline of the test — one choice among three options for the other section that CPA hopefuls must pass besides the three core components of the 16-hour examination — cover financial planning and retail tax services for individuals.

The change reflects growing ties between wealth management and tax professions and an effort among CPAs dating back a decade. Just as with any changes to the certified financial planner exam, any shift in the topics on the test brings new possible areas of professional development, business and client services to practitioners in the field.

Read more:

New CPA exam section on financial planning links tax and wealth

Lessons from a trailblazer: Curtis Brown reflects on his career as a Black advisor

After Curtis Brown's 30-year tenure with Merrill as a financial advisor who became a branch manager and a high-ranking executive, friends and colleagues urged him to tell his story in a book.

"Confessions of a Wall Street Warrior: My Revelations and Reflections," shares the tale of an Army brat and martial arts expert who turned into a trailblazer of the investment industry as a Black advisor. Brown — now a coach to advisors and executives as a consultant with Supernova Consulting — provides a chronicle of how the profession has changed over time and the high stakes of recruiting fights for top talent, among other lessons for planners and aspiring ones.

"You have to take responsibility for your life, for your career, and you need to be thinking about your own personal journey. You need to have an awareness that everything's not smooth sailing," Brown said. "There are going to be moral dilemmas that you face."

Read more:

Merrill trailblazer Curtis Brown shares lessons on life and leadership

Understanding the financial needs of polyamorous clients

In a February 2023 YouGov poll, 55% of respondents said they prefer monogamy between two people in a relationship — but 34% said their ideal relationship isn't completely monogamous, and 26% preferred something between complete monogamy and complete nonmonogamy.

Polyamorous clients' financial plans require more communication than others might need, and advisors must consider ways to provide security for unmarried partners.

"These are people who have had some difficult conversations with one another to get to the point where they are," said Frank Summers, a planner at Cetera Investors. Even so, "Money is a major topic of conversation in relationships, and the day-to-day management of money is that much more complicated when three people are involved."

Read more:

Polyamory and planning: How to serve nonmonogamous clients

How mentorship can open doors to the finance ‘boys club’

Women in banking and finance are paid $13 per hour less than men, according to data from ADP. That adds up when one considers a decades-long career.

While there are no quick fixes for improving equality and opportunity for women in these professional spaces, establishing mentorships can ensure more women can chart a path for themselves in this field.

"Anytime you have an underrepresented group, it's even more important to have mentorships to support the few that are there," said Mara Derderian, a financial and risk management professor at Bryant University. "It's human nature to look for mentors who look like you; someone I could emulate and want to be like."

Read more:

The key to seeing more women in finance? Mentorship

Carolyn Armitage is using her decades of advisor experience in new role

After more than three decades in wealth management, Carolyn Armitage is familiar with the shifts the industry regularly sees. Now, she has opened her own firm, Carolyn Armitage Consulting, after leaving her post as head of Thrivent Advisor Network last year.

In an interview with Financial Planning's Tobias Salinger, Armitage discussed the launch of her new firm, the biggest challenges facing the industry, and how wealth managers should always be open to preparing for change.

"I always tell advisors, whether they're my clients or I'm just meeting somebody over cocktails at a conference: Take the call, see what they have to say, keep a spreadsheet of the information, who the firm is, who you talk to, what their offer was."

Read more:

Planning for change? A veteran wealth executive wants to help