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Written by: Jack Giardino | Inflection Point Wealth Advice
In an age of social media and constant connectivity, you might think it would be second nature for young financial planners to stay connected and regularly network with other industry professionals. However, it seems there is a new trend for professional networking between younger planners to be presented as irrelevant, or as I have been told in the past, “a waste of time.”
This has led me to the question: Why does it seem that professional networking is being minimized or seen as no longer valuable for younger planners, even though it’s often credited as the one thing that has saved, changed, or enhanced so many others’ careers?
As a financial planner who has benefited tremendously from professional networking, both within my early years in the industry, as well as current day, I want to share five main reasons professional networking isn’t a waste of time and can be the launching pad for some amazing opportunities:
Boosting Confidence and Soft Skills
As a young financial planner, two of the most important and difficult skills to build are self-confidence and soft skills. As you navigate the world of complex conversations with clients, the knowledge behind those discussion topics is usually the easy part of the equation, but how are you handling the related soft skills?
Are you coming off as confident and knowledgeable? Are you able to communicate effectively and efficiently? Are you able to answer questions out of left field?
Professional networking can help force you to step out of your comfort zone, improving both your self-confidence and your soft skills, through “risk-free” conversations with peers.
Expanding Knowledge and Perspectives
Within the financial planning industry, the landscape is always changing - new tax laws, investment strategies, technologies, and planning opportunities are introduced regularly. In order to be a top-tier financial planner, it’s important to stay informed of the ever-changing landscape.
Through professional networking, you have the opportunity to discuss topics, strategies, and perspectives that you otherwise may not have access. While our own employer may offer resources, it’s always beneficial to hear what other planners are doing to help expand your knowledge and fully develop your perspectives.
Career Development and Growth
As a young financial planner, you likely have many years within the industry ahead of you. It’s no secret that the average financial planner switches firms/jobs a few times within their career. Make no mistake, while it’s normal to see folks change firms here and there, it’s something that you likely want to be strategic and thoughtful, especially if you are working on building a book of business.
Networking with other financial planners allows you to better understand how other firms operate, what job opportunities might be out there, as well as find mentors to provide insight and perspective as you navigate challenges within your career.
Referral and Client Acquisition
In our industry, word of mouth is one of the most powerful business development tools. While some might view professional connections as competitors, I have found that strong professional relationships can lead to referrals. It’s not uncommon for planners to refer clients elsewhere if their situation doesn’t fall within their niche or wheelhouse.
Developing strong professional connections with peers familiar with your business, your client base, and who trust your capabilities, can position you as a top choice for when they encounter clients who might be better served by you.
Staying Motivated and Accountable
Perhaps one of my favorite benefits of networking with other financial planners is the motivation and accountability that can come from these relationships and conversations.
Through professional networking, I’ve built relationships that has led to creating and joining study groups, which help keep me motivated, inspired, and focused on both my personal and professional goals.
What You Put In Is What You’ll Get Out!
While I’ll be the first to admit professional networking doesn’t always yield immediate results and can be a time commitment, I am a firm believer it’s not a waste of time and there are undeniable long-term benefits that can be reaped. It’s important to play the long game when it comes to professional networking. Be patient, persistent, and focus on building true authentic relationships as these can lead to career-defining opportunities.
Related: Net Unrealized Appreciation (NUA) Retirement Planning & Tax Optimization