Craig Nern, Vice President, Business Development Specialist
With the Summer Olympics approaching, it’s a safe bet that some new world records will be set in the speed events. How is it that athletes can continue, decade after decade, to get faster on foot and in the water? The human body hasn’t changed in 50 years, but everything else has — there’s better training with the help of technology, better equipment thanks to materials science, and a better understanding of human physiology and performance.
Of course, it’s not only athletes that have improved performance over the years...so has the financial advisor. Advancements in knowledge, technology, and tools have transformed both fields, elevating their respective standards of excellence.
In the old “stockbroker” model of 50 years ago, advisors operated with relatively crude tools and limited information. Much like the athletes of yesteryear, who trained without the benefit of modern sports science, nutrition, and biomechanics, these early advisors relied heavily on manual data analysis, a relatively few financial publications, and personal networks often providing questionable information. These strategies were highly constrained by minimal real-time information and a narrower scope of investment options. Further, the great majority of advisors thought in terms of stocks or products versus planning and solutions.
In stark contrast, today’s financial advisors are akin to modern Olympic athletes, who benefit from cutting-edge technology, rigorous scientific training, and a wealth of performance data. Financial advisors now leverage advanced analytical tools, sophisticated software, and instantaneous access to global financial markets. This technological revolution allows them to craft more personalized and agile financial strategies with a wide array of investment options tailored to individual client needs.
Further, the contemporary financial advisor is a part of a broader ecosystem of experts, much like an Olympic athlete’s support team of coaches, nutritionists, and sports psychologists. This allows advisors to provide holistic financial planning that encompasses not only investments but also tax planning, estate management, and retirement strategies.
Education and ongoing professional development have also played crucial roles in the evolution of financial advisors. Just as athletes undergo continuous training to hone their skills, financial advisors of today engage in lifelong learning to keep up on new regulations, financial products, market dynamics, and ever-improving analytical tools. Continuing education ensures they can navigate the complexities of modern finance with expertise and confidence.
Today’s financial advisors offer remarkable services and advancements compared to their counterparts from fifty years ago. Through the integration of technology, collaborative strategies, and a commitment to education, financial advice has evolved into a modern, high-performance profession — and that’s something worthy of a gold medal.
This material is being provided for educational and informational purposes only. D.A. Davidson & Co. is a registered broker-dealer and registered investment adviser that does not provide tax or legal advice. Information contained herein has been obtained by sources we consider reliable but is not guaranteed and we are not soliciting any action based upon it. Any opinions expressed are based on our interpretation of the data available to us at the time of the original article. These opinions are subject to change at any time without notice. Copyright D.A. Davidson & Co., 2024. All rights reserved. Member FINRA and SIPC.