By Michael Kothakota, Lecturer in the M.P.S. in Wealth Management Program, School of Professional Studies
Beyond understanding the financial planning process and related wealth management technical skills, successful practitioners also exhibit a set of professional dispositions: attitudes, behaviors, and ethics that guide decision-making and client interactions. These same dispositions can be practiced and observed in our academic settings.
Here I describe some of the key professional dispositions needed by financial planners and wealth managers, with examples from the field.
Integrity and Ethical Judgment
A planner’s most essential trait is integrity. Planners are entrusted with managing the financial well-being of individuals, families, and organizations. Clients need to be certain that their most intimate personal and financial details will be kept confidential. Trust is the foundation of this relationship, and it can only be built when a planner demonstrates ethical behavior, consistently across interactions with their clients.
In a professional setting a planner might be faced with a situation where a client asks them to flout the law, such as undervaluing assets for tax purposes. A professional with high integrity will respectfully decline to engage in any activity that compromises ethical standards, even if it means losing a client. Instead, they will guide the client toward compliant solutions.
Additionally, professional partners (e.g., accountants, estate attorneys) will want to work with and refer business to planners with integrity, and refrain from working with those who are not.
Empathy and Client-Centered Communication
Empathy is the ability to understand and share the feelings of others. This is key to building strong, lasting relationships with clients. Financial matters are deeply personal and often stressful; clients need to be and feel heard, understood, and supported.
In practice, planners may work with clients with a variety of beliefs and emotions around personal finances, some of whom may also experience acutely stressful life events (e.g., death of a spouse, divorce) that impact their financial well-being. Planners need to develop these skills as part of their technical skillset. Successful planners avoid jargon and communicate in a manner that is accessible to each client. They need to be able to see beyond themselves and actively seek to fully understand their clients’ needs and concerns before they begin to help respond. The planner’s empathetic communication along with active listening—offering comfort while providing clear, accurate, and thoughtful advice—can help the clients feel supported and better equipped to navigate the complexity of their situation.
Attention to Detail and Analytical Thinking
Planners deal with complex financial data and strategies within a complex regulatory environment. Attention to detail ensures that nothing important is overlooked, while analytical thinking allows planners to craft customized solutions that fit the unique needs of their clients.
In practice, a planner assessing a client’s retirement plan must be meticulous in their analysis of the client’s income, future goals, and potential risks. Overlooking even a minor detail could drastically alter the outcome of the plan. “Careless calculation errors” could result in inappropriate recommendations and potentially result in catastrophic outcomes.
Resilience and Adaptability
The financial planning industry is constantly evolving. Economic conditions, security regulations, tax laws, and investment opportunities are subject to change, and successful planners must be able to adapt quickly and remain resilient in the face of challenges.
In practice, a planner might face a sharp decline in client investments during economic downturns. Clients may become upset, wanting to pull out of the market. A resilient and adaptable planner will stay calm, and carefully guide clients through volatile periods by adjusting their strategies without overreacting. They maintain a long-term perspective, remind their clients of their specific long-term goals, while reassuring their clients, helping them weather financial storms.
Commitment to Continuous Learning
The financial planning profession demands a commitment to lifelong learning. Regulations change, new financial products are introduced, and markets fluctuate. Staying informed about these changes is crucial for offering clients the best possible advice. Successful planners actively seek current information, which may be accessed through attending workshops, continuing professional education, and reading industry publications.
Opportunities Within the M.P.S. in Wealth Management Program
The M.P.S. in Wealth Management program is committed to an equitable learning community. As such, students are provided opportunities to acquire and apply the knowledge, skills, and disposition required for success in the field. Students have the opportunity to hone and demonstrate these dispositions as they engage in problem-based learning group work; asynchronous and synchronous discussions; communicating with peers, instructors, alumni, and the public.
Becoming qualified to be a planner goes beyond mastering technical skills. Integrity, empathy, attention to detail, resilience, adaptability, and continuous learning are some of the essential professional dispositions for building meaningful client relationships, delivering exceptional service, and navigating the complexities of an ever-changing financial landscape.
About the Program
A 16-month online program with asynchronous instruction, specially designed to accommodate working professionals, Columbia University’s Master of Professional Studies in Wealth Management program is taught by distinguished faculty with deep applied experience in their respective fields. Additionally, it is a CFP Board Registered Program designed to help students meet the educational requirements for CFP® certification.
