Financial Professionals help consumers make financial decisions. According to the 2020 Retirement Confidence Survey, 41% of participants prefer expert help when making retirement investing decisions.
The Vanguard Funds’ Advisor’s Alpha study indicated that financial professionals can boost returns by 3% yearly. How does a financial advisor stand out among the 300,000 in the U.S.?
Our top recommendations for financial professionals include books on mutual fund investing, growth hacking, and risk exploration.
Best Overall: The Intelligent Investor
Benjamin Graham’s “The Intelligent Investor” is one of the most well-known works in the financial literature, and for good reason it holds a position of honor in the literary canon. The book was initially released in 1949, but it has subsequently been revised to include some contemporary perspectives, such as commentary and footnotes written by financial journalist Jason Zweig.
The soundness of value investing, minimizing losses, and avoiding letting one’s emotions get in the way of making rational choices when navigating the financial markets are all aspects of Graham’s insight that continue to hold true today. This timeless piece of literature has been purchased in excess of one million times all around the world and has garnered ringing recommendations from Barron’s.
Advice Based Primarily on Personal Experience: The Million-Dollar Financial Advisor
The book “The Million-Dollar Financial Advisor,” written by David J. Mullen Jr., takes a more human approach to the industry by conducting interviews with 15 of the industry’s most successful financial advisors and combining the results into 13 practical takeaways for financial professionals. These lectures concentrate on fundamental aspects of the business, such as cultivating and sustaining relationships with customers. In his thirty years in the profession, Mullen rose through the ranks to become a managing director at Merrill Lynch.
Best for Mutual Fund Investors: Common Sense on Mutual Funds
Within the realm of mutual funds, “Common Sense on Mutual Funds” by John C. Bogle has come to be regarded as something similar to scripture by industry professionals. A mutual fund is a type of investment instrument that allows participants to pool their capital for the purpose of making investments in various securities, most commonly stocks and bonds. They are significant in the world of investments because they make it simple and inexpensive to diversify your portfolio, which is one of the most important aspects of investing.
This revised edition, which was first released in 1999, provides information on a wide range of topics, including the essentials of investing in mutual funds, recent developments in regulatory policy, and the construction of a diversified investment portfolio that can withstand the test of time. In addition to being the author of “The Little Book of Common Sense Investing” and “Enough,” Bogle was also the creator of The Vanguard Group, which is currently one of the largest investment companies in the world.
Best Expert Account: The Alchemy of Finance
The readers of “The Alchemy of Finance” by George Soros are provided with a plain look into the current state of the financial markets and the factors that drive them. Soros, who gained his fortune by trading against the British pound, gives a glimpse into his decision-making process and investment techniques, as well as his ideas on the world that formed them. He did this in order to shed light on how he made his fortune.
This book also sheds light on the famous “theory of reflexivity” developed by George Soros. This theory examines the ways in which the underlying ideas of investors influence their investing choices. Soros is the chairman of Soros Fund Management and the principal investment advisor to the Quantum Group of Funds. Bloomberg Businessweek referred to him as “The Man Who Moves Markets,” and he has earned that moniker.
Best for Growth Hacking: The 10X Financial Advisor
The book “The 10X Financial Advisor” by Scott Winters is an excellent resource for financial advisors who want to expand their businesses but are unsure how to do it. The book encourages financial professionals to manage their companies in the same manner as a traditional enterprise. His findings are founded on a model called the Quantum Leap Success Model, which is a strategy that will not only assist financial advisors in expanding their businesses but also in maintaining that expansion.
The name of the book gives away the subject matter, which is an investigation of how the one financial advisor at each company who is 10 times more effective attained that growth and maintained it. Winters is a seasoned veteran of the industry and a leading financial advisor. He developed a wealth management organization from the ground up, and it now manages more than $2 billion in assets and has more than 20,000 customers.
Best for the Analytical Mind: The Quants
This investigative journalism piece is a fascinating look at the mathematicians, often known as “quants,” who were behind the Wall Street disaster that occurred in 2008, and it was published in the New York Times bestseller list. The first chapter of Scott Patterson’s book opens with a high-stakes poker game that is being played by the hedge fund managers of Wall Street. During the game, they compare and contrast their techniques for both investing and playing poker. This is one of the most memorable sequences in the book.
The quantitative approach to investing is pitted against the Wall Street investors of yesteryear, complete with all of their swagger, in “The Quants,” which presents an interesting contrast between the two. And despite the fact that supercomputers, complicated algorithms, and profits that appear to be guaranteed seem like superior tactics, they are not always successful; the recent subprime mortgage crisis and market catastrophe are evidence of this. In addition to being a novelist, Patterson is a staff reporter for The Wall Street Journal. His book is titled “Dark Pools.”
The Most Useful When Counseling Customers: Advice That Sticks
Only half the battle is won by providing sound counsel on financial matters. Getting customers to listen to what you have to say is a whole different matter. Dr. Moira Somers, a neuropsychologist and an expert in the field of financial change, presents the five primary criteria that influence whether or not a client will really take your advice, which is often referred to as client compliance.
These elements include the sociocultural context, the psychological make-up of the customer, and even the affective dimension of financial matters. The role of financial advisors themselves is another important consideration. Somers discusses how financial professionals should avoid making crucial blunders in advising clients in his book “Advice That Sticks.” This results in a better relationship with the client, higher returns, and improved business growth for the advisers.
Best Historic Account: Barbarians at the Gate
“Barbarians at the Gate” is a book written by Bryan Burrough and John Helyar that tells the story of the leveraged buyout and eventual fall of RJR Nabisco. It is essential reading for anyone who work in the financial industry since it helps demonstrate how leveraged buyouts (LBOs) went from being a practice that was looked down upon to something that is more typical nowadays.
The authors of this New York Times best-selling book, which is widely regarded as one of the very greatest business books ever written, based their work on a number of essays that they had previously written for the Wall Street Journal. After some time, it was turned into a movie for television that was directed by Glenn Jordan.
Best Exploration of Risk: Against the Gods
What exactly does it mean to invest with no risk? The book “Against the Gods,” written by Peter L. Bernstein, provides an in-depth exploration of exactly that topic, beginning with gamblers in ancient Greece and moving on to probability games played during the Renaissance as well as the lessons left behind by some of the greatest mathematicians in the history of the world.
It should come as no surprise that this book, which has been a bestseller in both Business Week and The New York Times Business, discusses the dangers and opportunities presented by participating in the financial markets. Because of this, both experienced traders and newcomers to the market should read it. Bernstein is an economic consultant, the publisher of Economics and Portfolio Strategy, and author of nine books. He is also known as Bernstein.