As a financial professional who balances a career between the rigors of academia and the practical world of financial planning, I know a thing or two about sleepless nights. Whether it’s the uncertainty felt by new advisors who are just starting their careers or the day-to-day practice management concerns of a seasoned professional, the origin of sleepless nights generally boils down to fear.

From worries about passing exams and choosing the right firm to work for, to concerns about retaining clients and staff, learning how to manage these fears will make you better able to help yourself and your clients.

Common Fears of New Financial Professionals

For those embarking on a career in the financial industry, the road ahead is paved with a unique set of fears and concerns. The transition from the classroom to the real world can be daunting, with a multitude of challenges to navigate.

One of the primary worries I hear from financial planning students is the fear of not fitting into a firm’s culture or discovering they dislike their job role. After years of studying and envisioning their dream career, the reality of the workplace can sometimes clash with expectations, leading to a sense of unease and uncertainty.

Building a community and network in a new location is another concern that weighs heavily on the minds of financial planning students. Leaving behind the familiar surroundings of their university and forging new connections can be challenging, especially in an industry that thrives on relationships.

Developing rapport and building relationships with colleagues is equally important. As a newcomer in the field, establishing trust and camaraderie with more experienced professionals can be difficult, yet crucial for success.

Time management becomes a critical skill as students transition into their professional roles. Finding the right balance between work, studying for certifications and other exams, and personal life can be a constant struggle, especially for those adjusting to the demands of young adulthood.

Managing their own finances efficiently for the first time is another hurdle that financial planning students must overcome. Ironically, those who will soon be advising others on financial matters may initially struggle to apply those principles to their own lives.

Sage Advice to Mitigate Newcomers’ Fears

My advice to students who are experiencing these concerns includes proactive steps they can take to help resolve many of these fears simultaneously.

When it comes to fitting into a community—whether it’s the work community or an unfamiliar location—I recommend finding a mentor. A mentor will provide guidance, share their experience, offer encouragement, and serve as a cheerleader to help new financial planners gain confidence and assimilate into their role. This might be someone in your firm or someone you connect with through the many financial planning organizations.

This brings me to the value of joining professional organizations. The financial planning community wants you to succeed. As such there are many support organizations available including the Financial Planning Association (FPA), the Society of Financial Service Professionals (FSP), and the National Association of Personal Financial Advisors (NAPFA). Membership in these organizations comes with many benefits that can help financial professionals not only grow in their careers, but also become better at connecting with clients, helping them solve their problems, and making their lives simpler.

Finally, I want to emphasize the importance of giving your new career a fair chance. Starting something new is challenging for everyone. I recommend sticking with it for at least two years before making any drastic decisions.

Fears that Plague Seasoned Financial Professionals

Even financial professionals who have been practicing for years have fears. There are fears related to their knowledge and expertise, their clients and their behavior, and for many, the fears that surround managing a successful practice.

Imposter Syndrome

Imposter syndrome can rear its head for even the most capable of financial professionals. Despite years of education and experience, there’s a nagging fear of being unqualified or ill-equipped to guide clients through complex financial decisions. This self-doubt can manifest as second-guessing recommendations or feeling like a fraud.

To combat imposter syndrome, first learn to recognize it when it’s happening and acknowledge that this is a normal feeling that many people experience. Take a step back, look your inner critic in the eye, and work to reframe your views. Focus on your education, experience, and accomplishments to vanquish these negative thoughts.

Client-related Fears

Another common fear is clients not following through on meticulously crafted plans and recommendations. After investing significant time in understanding clients’ goals, running projections, and outlining action steps, you may have clients who disregard or delay implementation. It can feel like a wasted effort and a missed opportunity to improve their situation.

But it’s because of the time and effort you’ve put into your client’s financial plan that you know what the next steps need to be. Start by ensuring clients aren’t overwhelmed with too many action items and recommendations. Strike a balance between being comprehensive and keeping clients focused on priorities. Getting buy-in by letting clients prioritize their top concerns can help increase engagement and follow-through.

In some cases, you may recognize the need to bring in outside help or refer your clients out to external professionals to handle tough conversations around behavioral finance issues, family dynamics, or psychological barriers. When this becomes necessary, planners need to remind themselves that this collaborative approach will benefit the client. It’s not a reflection on your expertise to admit your limitations.

An emotional challenge that can cause sleepless nights is dealing with untimely client deaths, disabilities, or terminal illnesses that upend carefully constructed financial plans. Financial planners need to take solace in knowing that they’ve done everything they can to help the client prepare for such circumstances.

On the flip side, financial planners may also fear a client outliving their assets due to incorrect planning assumptions or unforeseen events. Again, by relying on your expertise and employing appropriate strategies to help handle unpredictability, you can rest assured that you are doing your best to prepare your clients for any scenario.

Practice Management Fears and Stressors

One of the biggest fears for financial professionals is client attrition. Acquiring new clients is an expensive and time-consuming process, so retaining existing clients is crucial for the success of any practice. Building trust and creating strong client experiences are key to reducing attrition and keeping clients satisfied.

Employee turnover is another major concern. Losing valuable team members can be disruptive and costly, both in terms of recruitment and training expenses, as well as the potential loss of client relationships. Mitigate this risk by creating an environment where employees feel valued, supported, and have growth opportunities.

Work-life balance is a constant struggle for many financial professionals. The demands of the job can be intense, with client meetings, administrative tasks, and continuing education requirements often spilling over into evenings and weekends. Setting boundaries, such as no emails or calls during certain hours, and practicing self-care through activities like exercise, mindfulness, and phone-free time, can help ease this fear and prevent burnout.

Overcoming the Root Causes of Fear in Financial Services

As with any fears, you’ll often find a few key root causes. Firstly, in finance, there is an inherent lack of control over external factors like market movements, economic conditions, and individual client situations. No matter how meticulous the planning or skilled the planner, unforeseen events can upend even the most carefully crafted strategies.

Secondly, our minds often tend to catastrophize and blow potential negative outcomes out of proportion. While legitimate concerns exist, it’s crucial to maintain perspective. The actual likelihood of worst-case scenarios playing out is often much lower than our anxious brains would have us believe. Imposter syndrome, for instance, is a pervasive fear, yet most financial planners are highly qualified professionals who have earned their credentials through rigorous study and experience.

Thirdly, by fixating on factors beyond our sphere of influence, we risk neglecting the areas where we can exert control and make a tangible difference. While you can’t dictate market performance or compel clients to follow recommendations, you can foster a positive firm culture, deliver exceptional client experiences, and continually hone your skills and knowledge base.

Ultimately, financial professionals must focus their energy on the areas under their control. While markets will fluctuate and clients will sometimes make baffling choices, planners can pour their efforts into cultivating an exceptional client experience and a positive firm culture.

By providing empathetic guidance, setting reasonable boundaries to enable work-life balance, and prioritizing employee engagement, you can create a stable foundation from which to operate—a defense against the fears that can potentially keep you awake at night.

To learn more about the strategies that can help you avoid those sleepless nights, I invite you to view a webinar hosted by a colleague of mine, Dr. Kristy Archuleta, titled Overwhelmed and Burned Out: Working with Clients Even When You Don’t Feel Like It.

DISCLAIMER: The eMoney Advisor Blog is meant as an educational and informative resource for financial professionals and individuals alike. It is not meant to be, and should not be taken as financial, legal, tax or other professional advice. Those seeking professional advice may do so by consulting with a professional advisor. eMoney Advisor will not be liable for any actions you may take based on the content of this blog.

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