– It is essential to ensure that the financial planning profession can be adapted to the changing demographics of America’s wealth. This will allow Americans to get the advice they need.
Recent years have seen significant advancements in the recruitment of more women and people of color into the field. The number of CFP® professionals under age 30 has increased by 83% since 2016; 6,032 new women have joined the ranks of CFP® professionals, bringing the total to 20,632; and the number of Black and Latino CFP® professionals , including those who self-identified as biracial Black and Latino, grew to 3,688 in 2020.
However, recruiting is only one piece of the puzzle.
Financial planners need to create a work environment that encourages them to grow and develop their careers.
“As awareness of the financial planning profession continues to spread and we attract more ethically and racially diverse talent, the challenge continues to be retaining and supporting these thriving professionals,” explains Rianka Dorsainvil, CFP®, Co-CEO of 2050 Wealth Partners.
This support is meant to help financial planners feel at ease in their field and recognize the unique perspectives and skills they bring.
“Even though I didn’t necessarily look like most everyone else in the profession, I wish I realized then the power of being able to connect with someone who shares my background,” says Marguerita Cheng, CFP®, CEO of Blue Ocean Global Wealth.
“There are many people from different walks of life who could benefit from the services provided by a financial planner. And the personality traits that might appeal to one person or demographic, may not resonate quite as well with women or people of color,” Cheng says.
Jeanne Fisher, CFP®, CPFA, with Strategic Retirement Partners, notes that this is why financial planners need to harness their differences.
“Being a woman can be an advantage — not a disadvantage. Embrace it. Don’t try to ‘fit in with the guys.’ Our different approach, and the fact that we are naturally more empathetic, works in our favor,”She says.
Dorsainvil stated that she felt this way early in her career. “in order to fit in I needed to code-switch. I could not be my authentic self.”Dorsainvil stated that it was exhausting to have to constantly alter her appearance in order to make herself feel more at home with certain audiences. She also said that doing this ignored the fact you can succeed in this profession no matter your background, where you live, how you look, or what your circumstances are.
Dorsainvil says that to overcome that mindset and the obstacles that prevent women and people of colour from entering and staying in the profession, financial advisors must have allies who can act in solidarity and learn more about race and ethnicity.
Phuong Luong, CFP®, a financial planner with Just Wealth, LLC, explains that this means having difficult conversations.
The profession “cannot truly be inclusive until we see why we’ve been exclusive for so long,”She adds that financial planning in its entirety is uniquely positioned to facilitate the reckoning that will eventually help people become their most honest and fully realized selves
“If we get comfortable talking about race, imagine what we could do.”
Learn more about diversity, equity and inclusive thought leaders and best practice visits www.CFP.netYou are invited to the 4th Annual Diversity Summit which will be held virtually November 17-18.
