Financial advisors are under pressure as the challenges of growing their client base, compliance and regulation, and political uncertainty make the job increasingly stressful.
With FAs also encountering anxiety and other mental health issues among their clients, a survey of over 600 advisors by FlexShares Exchange Traded Funds found that 23% of advisors are more stressed than the (US) national average.
But most advisors (79%) also say they are satisfied with their career path and interestingly, the report found that those advisors with larger assets under management were more satisfied.
Those with AUM of above $250m were 12% more satisfied with their jobs than those with smaller AUM.
“Despite growing pressures posed by factors outside of advisors’ control, like political risk and market volatility, advisors remain highly satisfied with their career choice,” said Darek Wojnar, Head of Funds and Managed Accounts. “To maintain this level of satisfaction potentially heading into an increasingly volatile market, it’s critical for advisors to seek out investment solutions that can meet their investment and business goals over the long-term and to devote the time needed to create an exceptional client experience.”
The main stress points
Advisors say that challenges associated with growing their practices (27%) and compliance and regulatory issues (19%) continue to be the top stress inducers, with nearly half of those surveyed citing these as their primary sources of work-related stress.
Political uncertainty and market volatility are growing sources of stress though.
Advisors who described their role more holistically in terms of “wealth management” or “financial planning,” were 31% more stressed than those who described their role solely in terms of “investment management.”