10 Attributes of Great Financial Advisors

“Hire a financial advisor!”

You have probably heard this advice more times than you can count. High-net-worth individuals swear by their advisors, and even your peers might mention how their advisor helped them get their financial life in order. But what exactly makes a financial advisor great? What should you look for to ensure they will truly add value to your life?

Whether you are considering hiring someone new or evaluating your current advisor, there are several important advisor attributes you should assess. In this article, we will walk you through the top ten characteristics of a good financial advisor.

10 qualities of a good financial advisor you should know to spot a gem!

1. Qualifications and certifications galore – Look for someone who has the right licenses on the wall

One of the most critical traits to look for in a good financial advisor is competence, and a large part of that competence is reflected in their qualifications and certifications. A financial advisor’s ability to handle your money wisely depends heavily on their training and expertise. There are several certifications in the financial world that you can keep an eye out for.

Some of the most well-regarded include the Financial Risk Manager (FRM), Certified Financial Planner (CFP), Chartered Financial Consultant (ChFC), Certified Public Accountant (CPA), Chartered Life Underwriter (CLU), Chartered Investment Counselor (CIC), Accredited Investment Fiduciary (AIF), and Certified Fund Specialist (CFS). Other titles include Accredited Asset Management Specialist (AAMS), Retirement Income Certified Professional (RICP) and Chartered Alternative Investment Analyst (CAIA). There are also the Accredited Management Accountant (AMA) and Personal Financial Specialist (PFS) designations.

These credentials are more than just frames mounted to the wall in an advisor’s office. They help you understand the advisor’s expertise, area of interest, and credibility. Therefore, always verify that your financial advisor holds one or more of these designations.

2. Unstoppable passion for all things finance!

What is an athlete without a love for their sport, or a painter who feels nothing for color? In the same way, what is a financial advisor who lacks passion for finance?

For a financial advisor, being passionate about their profession is not optional. It is what keeps them engaged in a world that is constantly shifting, where markets rise and fall, tax laws evolve, new investment tools emerge, and client needs change with every life event. A truly passionate financial advisor voluntarily reads about new regulations over coffee, attends industry seminars without being told to, and stays curious.

This passion makes them go above and beyond. It also helps them connect better with clients. Unfortunately, passion is one of the most underrated qualities of a financial advisor. People often focus on degrees. And while those are important, they may not do much without passion.

3. Ability to talk, listen, and process

Being a financial advisor is, at its core, a people-centric profession. This is not a job where you can hide behind a screen all day. It requires direct engagement, conversations, and a genuine connection with clients. Communication lies at the heart of this profession. And this communication involves the essential balance of talking, listening, and processing.

• First, a financial advisor must be able to communicate with clients in a way that is clear and understandable. Finance can be intimidating. Many clients come in carrying fears about money or regrets from past mistakes. There is also a general sense of confusion when it comes to managing and investing money. A financial advisor’s role is to cut through what may feel like gibberish and explain things in intelligible How an advisor communicates diverse financial ideas makes all the difference.
• But talking alone is not enough. Truly listening to the clients is equally critical. A financial advisor needs to tune in, without interrupting, to fully understand where the client is coming from.
• And once the talking and listening are done, comes the next step - processing. This refers to digesting all that has been shared, reading between the lines, and piecing together all the information. Processing the information correctly ensures that the financial advisor understands the client’s needs and can align the strategy with their risk tolerance and life goals.

This three-step loop of talking, listening, and processing is not just a communication technique. It is a fundamental skill for a financial advisor to have.

4. Honesty and integrity

Honestly, honesty is one of the most essential characteristics a financial advisor can possess. Clients entrust their advisors with their life savings and long-term financial security. That kind of trust does not come easily and must be earned, and it all begins with honesty and integrity.

From the very first interaction, a financial advisor must be transparent and open. They must set realistic expectations and clearly communicate the truths about investing and risk.

Sugar-coating an investment’s potential or making bold promises about the returns may lure in clients and create short-term excitement in their minds, but it can also lead to disappointment very soon down the road. Clients need to hear the truth, not what is comfortable. Advisors should openly share the pros and cons of every financial strategy or product they recommend.

So, if a fund offers impressive potential returns, great! However, the associated risks must also be clearly outlined. Clients should never feel blindsided. Honest advisors also take ownership of their mistakes and communicate any conflicts of interest.

5. Laser-sharp discipline

As a financial advisor, one can’t afford to be impulsive or work on a hunch. Discipline is what makes an advisor great. It helps one stay focused on long-term goals without succumbing to short-term distractions and impulses. Rather than pushing clients into impulsive decisions, a good financial advisor must adhere to well-thought-out plans, thorough research, sound logic, and relevant experience.

This discipline is not just about investment choices. It also shows up in the way they manage every part of their day, from scheduling client meetings and follow-ups to continuously updating them about new tax rules or products. Good financial advisors must be prepared at all times.

6. Teaching skills

Another useful characteristic of a good financial advisor is their ability to teach their clients. While the advisor-client relationship may last for a few years or even decades, the financial wisdom passed on by the advisor during that time can benefit the client for the rest of their life.

For instance, if a client learns how to budget, they can continue doing so for life, even after the financial advisor is no longer available. They can always save efficiently, prioritize their needs over wants, and make financially smart decisions even after retirement, or if they stop working with the advisor.

When a financial advisor takes the time to explain, rather than just recommend strategies, products, or decisions, the client becomes financially literate, confident, and capable. They make informed choices, even when they are no longer actively working with the financial advisor or have stopped earning altogether. Financial education also safeguards the client. A well-informed client is less likely to fall for scams or misleading promises. They learn to assess the risks for themselves.

7. Cool as a cucumber - No panic, please!

Consider an example:

You have been regularly contributing to your 401(k), collecting employer matches, steadily moving towards your financial goal - until suddenly, a layoff wipes out your income and puts an end to employer matches.

Life has a funny way of going out of control just when everything seems to be going according to plan. People can spend decades saving for retirement, only to see the market nosedive right as they are about to retire. Does COVID-19 ring a bell?

In these moments, panic is a natural human response. When the future looks uncertain, the urge to make hasty decisions often arises. But this is precisely where a good financial advisor can help clients.

One of the most valuable qualities for a financial advisor in these situations is to remain calm, measured, and unshakable. Because if the client is spiraling and the advisor joins in, things can only go south from there. Someone has to be the anchor, and that someone must be the advisor.

A calm financial advisor can pause and assess the situation. They can help the client walk away from the chaos and bring a fresh perspective. They must remind the client of the long-term plan and not catastrophize the situation.

8. Confidence but not overconfidence

A financial advisor may not be the captain, but in many ways, they are the ones steering the ship. They help navigate uncertain waters and set sail towards calm shores. The ones where you get to enjoy a secure retirement, sipping a mimosa, living a debt-free life, and living off a well-balanced budget.

However, to embark on this journey, the financial advisor must be confident. When an advisor is confident, clients are more likely to trust their judgment and follow the course with faith.

But confidence should never tip into overconfidence. A financial advisor must be able to reassure clients and make well-considered decisions. They must not be overconfident and lead the client to unnecessary risk.

Overconfidence can cause someone to underestimate the complexities of the market. It can cloud judgment, minimize the perception of risk, and result in decisions that are more likely to be based on ego.

A confident financial advisor knows what they know and what they do not. They acknowledge uncertainty where it exists.

9. Always putting the client first - no exceptions

In the world of financial advice, there is one golden rule that must never be broken:

The client comes first. Always. No exceptions.

A financial advisor who does not listen, prioritize, or act in the client’s best interest is simply not doing their job. A strong advisor-client relationship is built on trust, and that trust begins with the financial advisor prioritizing the client’s needs, goals, and concerns at the center of every decision.

A good financial advisor must not push their personal preferences or craft a plan based on what they think is ideal. It is about truly understanding what the client wants, what they value, and where they hope to go in the future.

Of course, advisors bring expertise to the table. And sometimes, that expertise may lead them to believe that a client is headed in the wrong direction. But a good financial advisor knows when to guide and when to listen. They know they must set aside personal bias and respect the client’s unique circumstances, even if it challenges their assumptions.

This does not imply that the financial advisor must silently agree to every idea a client brings. Instead, the advisor can gently educate the client and explain the associated issues without being forceful or dismissive.

10. Easy-peasy accessibility

Accessibility is an essential quality in a financial advisor. Clients should not feel like they need to move mountains just to get a question answered or a concern addressed. It is 2025, and burnout is a very real phenomenon. Therefore, no one expects a financial advisor to be available 24/7. But a client would want them to be available in a practical and approachable way.

• First, accessibility starts with demeanor. If an advisor comes across as intimidating or disinterested, clients will hesitate to reach out, even when it is important. The financial advisor's personality and attitude should be open and warm. So, clients feel welcome and not wary.
• Second, being accessible is also about being proactive. Advisors who regularly schedule check-ins appear more attentive and present.
• Third, accessibility encompasses communication about ongoing matters, such as portfolio updates, policy renewals, and other relevant information. For example, if there is a new government regulation, such as some provisions of the Tax Cuts and Jobs Act (TCJA) are set to expire soon. These can impact a client. In such a scenario, instead of waiting for the client to ask, the advisor can clearly and in advance share the update.

To conclude

A good financial advisor is all of these things and more. These 10 advisor attributes may seem like a lot to be looking for in one person. But finding someone who brings this mix to the table is quite possible.

Unlike the never-ending quest for the perfect house, job, or even partner, choosing the right financial advisor is simpler, especially with tools like our free advisor match tool that helps match you with professionals based on your requirements. Give it a try and find a seasoned financial advisor who has these wonderful qualities and more!