The Critical Role of Advanced Financial Education

How to integrate specialization with individual roles and responsibilities

When building your team, keep in mind that RIAs cannot specialize or justify their fees as a fiduciary without their team having advanced financial knowledge and education. Captive advisors or agents can easily delegate their clients' advanced financial planning needs to their home office. Advisors registered as Investment Advisor Representatives will eventually have to outsource clients if they do not have the necessary expertise.

RIAs can also struggle beyond specialized financial planning knowledge if team members do not possess the business acumen needed to develop, grow, and scale the RIA. Many financial advisors find themselves lacking in important business development knowledge they once relied heavily on their home offices to provide. Options may include hiring a COO or obtaining an advanced degree in business management, such as a Master of Science in Management. As you will see, education and specialization are intrinsically intertwined.

RIA Team Specialization and Education Plan

This chart identifies possible positions within a specialized ensemble team and their associated responsibilities. It also aligns potential knowledge goals for each team member to attain in their pursuit of procuring the expertise required to perform their role—and deliver the best service for your clients.

Paraplanner

I am a Financial Services Certified Professional® (FSCP®)

Knowledge Goals

Target marketing principles
Uncovering client needs and identifying solutions to address them
Ethical decision making
Current financial products used in the financial services industry
Major financial planning areas

Responsibilities

Client fact finding and onboarding
Maintain the firm’s social media accounts and accomplish marketing tasks
Prepare files for client meetings
Client servicing

Associate Advisor

I am a Wealth Management Certified Professional® (WMCP®)

Knowledge Goals

Investment management theory
Investment management tools
Investment accounts
Application and portfolio management strategies

Responsibilities

Data input into financial planning technology
Portfolio asset allocation analysis
Prepare files for advisory meetings
Perform investment research
Research for quarterly outlooks and summaries
Client servicing

Financial Advisor, Financial Planner

I am a Chartered Financial Consultant® (ChFC®) AND/OR CFP® professional

Knowledge Goals

Financial planning roles and responsibilities
Income taxation and principles of investments
Retirement and estate planning strategies
Planning for insurance needs
Behavioral finance

Responsibilities

Develop custom financial plans
Develop tailored investment plans
Direct Associate Advisors on data input into financial planning technology
Detail steps for plan execution for support staff
Meet with clients to present financial/investment plan and ongoing reviews
Draft quarterly outlooks and summaries

Senior Financial Advisor, Managing Partner, Director

I am a Chartered Financial Consultant® (ChFC®) AND/ OR a CFP® professional AND Retirement Income Certified Professional® (RICP®), Chartered Life Underwriter® (CLU®), Chartered Special Needs Consultant® (ChSNC®), OR Chartered Advisor in Philanthropy® (CAP®)

Knowledge Goals

Planning for divorced, blended, and nontraditional families
Retirement income planning
Risk mitigation and business succession planning
Trust services, wealth transfer and estate planning
Special needs planning
Philanthropic and legacy planning

Responsibilities

Develop custom tailored financial and investment plans for specialized and unique client needs
Detail steps for plan execution for support staff
Consult with advisory firms’ premier clients to present financial/investment plan and ongoing reviews

Managing Partner, Principal

I am a Chartered Financial Consultant® (ChFC®) AND/OR a CFP® professional AND Chartered Leadership Fellow® (CLF®) OR have earned a Master of Science in Management (MSM)

Knowledge Goals

Identify risks, manage them, and implement a successful business strategy
Evaluate marketing practices and demonstrate superior decision-making techniques
Demonstrate proficiency in management drawing on ethical, high-performing principles, processes, and practices
Examine strategies for managing organizational conflict while maximizing the effectiveness of prevention and resolution

Responsibilities

Analyze appropriate financial statements to make decisions that increase economic value and improve individual or organizational results
Validate datasets, draw conclusions, and make sound business decisions
Recommend tools and best practices for identifying risks, managing those risks, and implementing a successful risk strategy
Prepare a management proposal drawing on the principles, processes, and practices aligned with high-performing ethical organizations

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