Lawyers, accountants and doctors see themselves as professionals. Financial advisors are often seen as salespeople. When you think about it, there are many similarities among the professions.
1. Confidentiality. Across all four job categories, it’s expected the practitioner won’t talk about their clients. It might vary under certain legal situations, but it’s expected once you hire the person, what they tell you stays between you.
Similarity: Unlike businesses advertising their brand by sharing names of famous clients, your profession (and theirs) relies on discretion.
2. Acting in the client’s best interests. Attorneys, accountants and doctors want the best possible outcome for their clients. Although the fiduciary standard gets talked about a lot, generally speaking, financial advisors want long-term relationships. This involves putting the client’s interests ahead of their own. If not, clients would leave.
Similarity: All four professionals want their client to enjoy the best outcome possible.
3. Managing risk. All four professions involve helping a person with a problem or a need. Lawyers want their client to get a resolution to their problem. They might negotiate instead of risking going to trial. Accountants want to keep the client’s tax bill as low as possible, while staying within the law. Doctors want to cure the illness yet understand given a patient’s age or underlying conditions, some treatments are riskier than others. Advisors go through risk assessment as part of the financial planning process.
Similarity: All four professions want to deliver the best possible outcome while taking as little risk as possible.
4. Fees are charged for services rendered. Everyone expects to be paid. Across all professions fees are tied to the work done. Lawyers bill by the hour although they might take cases on a contingency basis. CPAs typically bill for time. Medical bills usually itemized or services delivered. Advisors often charge based on assets under management.
Similarity: No one expects to work for free. Advice and knowledge have value.
5. You need to know your client before offering advice. All four professions need to understand the client’s specific situation before recommending a course of action. This involves learning about the client, doing background research and determining what makes their situation unique.
Similarity: Generally speaking, they are all delivering personalized service.
6. Licensing is required. You just can’t hang up a shingle and practice. The four professions require testing and apprenticeship. In all cases, their credentials can be verified before engaging them
Similarity: In all four fields, people are trained and tested before they are allowed to practice.
7. Continuing education is expected. No one stops learning. Tax laws change. New laws are passed. Medical advances take place. New financial products are developed. New companies appear. Clients expect the professional they engage to be current.
Similarity: Non-stop learning is expected throughout their career.