6 Soft Skills Financial Planners Need

To be a successful financial planner, you need a solid understanding of investment strategies, taxes, budgeting, and other pillars of actual financial planning. But technical knowledge is only part of the equation.

You also need “soft skills” to build long-lasting trust with your clients. “Soft skills” are key traits that make financial planners great at what they do. And contrary to the name, soft skills aren’t easy. If anything, they can be more challenging than the intricacies of retirement planning or investment strategies.

Let’s take a look at six of the most important soft skills you’ll need to succeed in your financial planning career. We’ll cover why they’re important and include real-world examples of how to use them in client interactions.

Financial Planning Soft Skill #1: Emotional Intelligence

Also known as emotional quotient (EQ), emotional intelligence has two components:

The ability to recognize and manage your own emotions, and
Understanding and influencing the emotions of others.

It’s easy to see why EQ is essential in financial planning. After all, money is often an emotional topic for clients. An effective planner can understand and sympathize with their client’s emotions, as well as understand and manage their own emotions to provide clients with patient, compassionate support. Even during difficult moments and stressful decisions, a financial planner with emotional intelligence can be a comforting resource for their clients.

Example: Imagine you have a client who is anxious about their financial future due to stock market volatility. Having high emotional intelligence allows you to acknowledge the client’s concerns, empathize, and offer reassurance before diving into the numbers. This approach helps ensure clients aren’t driven solely by their emotions, so they can understand and accept your advice.

Financial Planning Soft Skill #2: Flexibility (When Needed)

For financial planners, flexibility is about adapting to changes in a client’s financial circumstances or goals without sacrificing their professional boundaries. For most people, financial planning isn’t a one-time action — their priorities, resources, and goals change over time.

That’s why we believe in client-centered financial planning here at Amplified Planning — because we believe that the financial planning process is guided by and designed for our clients. They won’t always fit into a perfectly square box!

Clients tend to appreciate a planner who can adjust their processes and approach to their unique needs, concerns, or questions and then be willing to help adapt plans to changing goals and situations. The key to helping clients stay on track for their long-term goals is having a structure and an approach to help them, even when their circumstances change.

Example: Let’s say a client comes to their scheduled financial planning meeting with a significant change in life plans, like deciding to buy a much more expensive house. As a flexible financial planner, you take the news in stride and make appropriate adjustments to their cash flow projections and retirement strategy. However, you don’t completely overhaul their financial plan without analyzing all the possible outcomes, and you take the time to explain the changes to your client.

Financial Planning Soft Skill #3: Critical Thinking

Essentially, critical thinking is the ability to analyze complex problems and identify potential solutions. Strong critical thinking skills ensure you can make logical decisions based on facts and reasoning — but that, again, don’t treat clients like they all fit into the same box.

Financial planning often requires making decisions with clients who won’t have the same income, resources, or goals. That’s why having strong critical thinking skills is so important: It enables you to analyze risks, identify potential benefits, and use that information to make decisions that align with each client’s goals. You’re not just applying theoretical knowledge to a scenario without thinking about every possible outcome or alternative.

Example: Let’s say you have a client who wants to invest in a high-risk opportunity. You’d use your critical thinking skills to evaluate the client’s current financial position, risk tolerance, and goals as they relate to the opportunity. You would analyze all that data logically and work with the client to decide whether the investment makes sense.

Financial Planning Soft Skill #4: Financial Coaching

While you might work with clients who “just” want investment advice or retirement planning, many clients need to develop more confidence and better money management habits before they’re ready for a detailed financial plan. On the other hand, some people won’t even pursue financial planning because they feel intimidated or are ashamed of debt. This is why developing your financial coaching skills can be so valuable.

Learning how to encourage and coach clients into better spending and saving habits allows you to serve any client better and makes your services more appealing to someone who doesn’t fit the “traditional financial planning” mold. Being a great financial planner requires patience and compassion — it’s a balance between offering expertise and emotional support.

Example: Think about a client who is in debt or is living paycheck to paycheck. The idea of creating and following a budget may feel overwhelming. You could start by acting as a financial coach, breaking down complex concepts into simple, actionable steps and then checking in regularly to help them stay on track. After you’ve helped them succeed with a budget, they may feel ready to ask for help with retirement planning or investing.

Financial Planning Soft Skill #5: Adaptable Communication Styles

You need strong communication skills to be able to explain financial concepts clearly to your clients. This starts with active listening so you can thoroughly understand your client’s concerns and goals. Then, you need to tailor your approach so you can effectively address their concerns and guide them in their financial decisions. Good communication skills help reduce misunderstandings and give your clients the confidence to manage their money well.

Example: Picture a client who comes to you for advice on investing. They want to learn, but they’re completely unfamiliar with investment terminology. If you’re able to simplify your language and use relatable examples, you convey the essential information without making the client feel overwhelmed. It’s easier for the client to understand all their options and move forward with confidence.

Financial Planning Soft Skill #6: Commitment to Professional Development

Your financial planning education shouldn’t stop when you earn your CFP® certification, complete your Series 65, or land your dream job at a big firm. It’s crucial to stay up-to-date with financial news, industry changes, professional credentials, and new planning tools.

“Always learning” means you’re equipped to give your clients informed advice and exceptional service. Plus, your clients will feel confident they’re working with a knowledgeable expert.

Example: You were trained/taught to work with “traditional” financial planning clients, but most of your work will be with clients who don’t have $1 million AUM. You want to know how to support them and their unique life scenarios, so you decide to join Amplified Planning CORE 😉

H2: Time to Develop Your Financial Planning “Soft Skills”?

Emotional intelligence, flexibility, critical thinking, financial coaching, adaptable communication, and a commitment to professional development are essential skills for financial planners. We’d also argue that they’re non-negotiable if you want to advance in this profession.

If you’re ready to dive in and start mastering these key soft skills, Amplified Planning CORE is the place to be. Our online financial planner training helps you develop these soft skills and learn exactly how to use them in over 30+ incredibly unique client interactions. Plus, you can earn CFP Board Standard Pathway experience hours or CE hours. Get all the details and join now!