If you’re thinking about becoming a financial advisor, then there’s some news that you should be paying attention to. Signs suggest that many of today’s financial advisors won’t be around by 2025. But that’s just part of the story, experts are also predicting that the financial advisors that do survive the changing industry will be much better off in terms of their own wealth.
So why are things changing? The most important change happening now is the rise of artificial intelligence. Powerful computers have already changed the way that investing is done, with more and more work being turned over to algorithms. So far computers are usually left to focus on details while humans manage the big picture, but as AI develops more and more work currently being done by humans will be handed over to computers.
Consider the way that computers have impacted the business of doing taxes. Many middle-class individuals who used to have financial professionals do their taxes are now turning to cheap, over the counter software to handle the technical details. This means that tax experts have had to shift their focus to wealthier clients who are willing to spend extra for personalized assistance that will earn them more in the long run.
The overall number of financial advisors is likely to decrease as more middle-class individuals turn to computers to help find their way financially. Financial advisors who want to secure their position in this changing world should aim for a wealthier clientele while looking to provide services that computers can’t.
Today a financial advisor can get by as a number cruncher, but as time goes on it will be harder and harder for humans to compete with computers on a technical level. On the other hand, there is no sign that computers will be able to replace people when it comes to making personal connections.
The financial advisor of the future is likely to be someone who is well connected with wealthy individuals and able to create and facilitate deals. This is the sort of work that humans excel in, and it’s an area every financial advisor should look to develop.