Selecting the correct career is a crucial decision with far-reaching implications. It is a choice that will shape your future, underscoring the importance of making an informed decision.

Over the next few weeks, The African Reporter will engage with businesspersons, professionals and others, focusing on a specific career every week.

By doing this, we aim to provide valuable guidance to our younger readers navigating their career choices. This week, we give a platform to the personal financial advisor (PFA) career. PFA Nompumelelo Zulu has been in the field for six months.

“While I am still early in my journey, I have already seen the positive impact good financial advice can have on people’s lives,” she said.

Her advice to those who might enter this career is to be patient and persistent.

“It takes time to build your client base and develop trust. Keep learning. The finance world is always evolving, so stay updated on products, regulations and market trends.

“Focus on relationships. This job is about people as much as it is about money. The stronger your client relationships, the more successful you’ll be.

“Believe in yourself, as confidence grows with experience, so take each opportunity as a step forward in your development,” she added.

What is a PFA?
My role is helping people manage their financial well-being by providing expert advice and guidance on a range of financial matters, including retirement planning, risk management (insurance), investment strategies, estate planning and more.

Our goal is to ensure our clients make informed decisions to achieve their short- and long-term financial goals, while helping them protect what matters most.

What are your primary duties and daily responsibilities?
As a PFA at Old Mutual, these are some of my day-to-day responsibilities:

• Client consultations: Meet with clients to understand their financial needs and goals;

• Financial planning: Developing personalised financial plans that include retirement, investment and protection strategies;

• Investment management: Advising on investment products, such as unit trusts and retirement funds, and monitoring portfolio performance;

• Insurance solutions: Offering insurance products to help clients protect their health, life and income;

• Regular check-ins: Following up with clients to review and adjust their plans based on life changes or market conditions;

• Prospecting: Building my client base by networking, referrals and outreach to new prospects.

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What hard and soft skills are essential to succeed in this profession?
Hard skills:

• Strong financial knowledge, particularly in retirement planning, investments, insurance and tax;

• Proficiency with financial software, tools like Excel and financial planning tools;

• Familiarity with regulations and compliance standards (especially around insurance and investment products).

Soft skills:

• Communication: Clear and empathetic communication is crucial to explaining complex financial concepts in a simple, relatable way;

• Trust-building: Clients must trust me with their financial futures, so building strong, lasting relationships is key;

• Problem-solving: Finding innovative solutions tailored to clients’ needs;

• Patience and persistence: Financial planning is a long-term journey; sometimes results take time.

Which high school subjects best prepare one for this career?
• Mathematics: To understand numbers, statistics and financial formulas;

• Economics: To understand how the broader economy and markets work;

• Business studies: To grasp the fundamentals of business and finance;

• English: Strong written and verbal communication skills are vital, especially when explaining financial products to clients.

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What qualifications or courses are needed?
• Bachelor’s degree: A degree in finance, economics, business or related fields is typically required;

• Regulatory exams: Depending on the region, you will need to pass certain exams (like the RE5 exam in SA for financial advisers);

• Old Mutual training: At Old Mutual, new PFAs undergo extensive training on our products, systems and sales processes;

• Certifications: While not mandatory, having certifications like Certified Financial Planner or Chartered Financial Analyst can be beneficial.

Where can one study or train to become a PFA?
• Universities: Institutions like the University of Pretoria and the University of Cape Town offer degrees in finance and economics;

• Old Mutual’s in-house training: At Old Mutual, we provide ongoing professional development through training sessions, mentoring and support;

• Online courses: Websites like Coursera or LinkedIn Learning offer finance-related courses to help develop foundational knowledge;

• Certifying bodies: Organisations like the Financial Planning Institute of Southern Africa offer certification programmes for aspiring advisors.

What guidance or advice do you give to your clients?
I provide comprehensive financial advice that includes:

• retirement planning: Helping clients plan and save for retirement using products like retirement annuities or pension funds;

• investment strategies: Tailored investment plans based on clients’ risk tolerance and goals using a range of investment products;

• insurance: Providing life, disability, health and income protection insurance to secure their future;

• Estate planning: Guidance on wills, trusts and tax-efficient estate planning;

• Tax planning: Suggesting tax-efficient investment strategies.

What are the pros and cons of the job?
Advantages:

• Rewarding: Helping clients achieve their financial goals and improve their lives can be fulfilling;

• High earning potential: Your earnings are often commission-based or linked to assets under management, so the more clients you help, the more you earn;

• Job security: The need for financial advice is always growing, and as a financial advisor at a trusted brand like Old Mutual, you are in demand.

Challenges:
• Pressure to perform: Meeting sales targets and building a client base can be stressful, especially in the beginning;

• Market volatility: Economic downturns or market crashes can impact clients’ portfolios and require extra effort to manage client expectations;

• Long hours: The role can be demanding, especially when trying to build your client base and reputation.

Where can PFAs find work, and which organisations or sectors typically hire them?
• Banks: Banks like Standard Bank, Absa, and Nedbank have personal financial advisory services;

• Independent advisory firms: Many advisors work independently or in small boutique firms;

• Insurance companies: Providers like Sanlam and Discovery also employ financial advisors to offer insurance and investment products;

• Corporate finance departments: Many companies offer financial advisory services for employees, especially regarding retirement plans.

What are the advantages and disadvantages that come with the job?
Advantages:

• Good earning potential: Especially with commission-based roles, your income can grow as you build your client base.

• Job satisfaction: Helping clients secure their financial future brings a great deal of personal fulfilment.

• Flexibility: You have control over your schedule and workload, allowing for a good work-life balance once you have established yourself.

Disadvantages:
• Sales targets: The pressure to sell financial products can be intense, especially when starting.

• Client dependence: Your business thrives on maintaining long-term client relationships, which can be challenging if clients’ needs change or they become dissatisfied.

• Market risks: The performance of financial markets can influence the effectiveness of your advice, and clients may be unhappy during market downturns