Understanding the Difference: Financial Advisor vs. Registered Investment Advisor

At Mutual of Omaha, being a financial representative is a very rewarding career with great opportunities and income potential. Currently, the company is recruiting candidates for its financial representative training program.

However, according to Jordan Crowe, director of advisor strategy at Mutual of Omaha, there’s a big challenge recruiting for this program.

“Some candidates think a financial representative needs to have the same knowledge, skills and experience as a registered investment advisor (RIA), but that’s not the case,” Crowe said. “The roles have different responsibilities and required licensing is used differently.”

RIA

These financial professionals help their clients develop investment strategies and build and manage investment portfolios. This requires extensive knowledge of the stock market, with hands-on experience trading stocks.

“RIAs work in the stock market. They buy and sell stocks on behalf of their clients. They focus on where their clients can invest for maximum growth,” Crowe said. “The duties of a financial representative are much different.”

Financial representative

Mutual of Omaha financial representatives are more relationship-based than investment-only RIAs, Crowe said.

“They work to develop a strong relationship with clients and maintain that relationship for the long term. These connections help financial representatives establish trust and truly understand the financial goals of their clients,” Crowe explained.

Plus, financial representatives have a more comprehensive scope than investment-only RIAs. Instead of a singular focus on investments, financial representatives provide advice on a range of issues, including estate planning, retirement planning, insurance needs and personal financial management.

“Like financial planners, a financial representative looks at the big picture. They look at how their clients manage money day to day and how those decisions may impact their long-term goals,” Crowe said.

And while financial representatives do provide investment advice, they don’t actually buy and sell stocks.

“So, you don’t need extensive knowledge and experience with the stock market,” Crowe said.

Train to be a financial representative

At Mutual of Omaha, the path to becoming a financial representative starts with a 30-day paid training period.

“The primary purpose of those 30 days is to get candidates licensed in life, health and annuities and bring them up to speed on our systems, processes and business practices,” Crowe said.

Those who successfully complete the training will be promoted to a financial representative. In addition to receiving a base salary, they’re eligible to receive monthly bonuses based on sales plus employee benefits.

If you’re interested, apply for a trainee position listed on our Careers website.