FA Alpha Daily

Working too hard isn’t good for your practice

Financial advisors face constant demands that can make it difficult to maintain consistent performance. Over time, the pressure to keep up can affect not only personal well-being but also the quality of decisions made for clients. In today’s FA Alpha Daily, we explore why working harder does not always lead to better results and how advisors can protect their effectiveness over the long term.

FA Alpha Daily:
Practice Management Insights
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No one can be “on” or at the top of his or her game all the time.

As much as we’d like to work for our clients tirelessly, we simply can’t operate at 100% effectiveness, 100% of the time.

That’s especially true in a profession where there’s always another client call, another pile of data to process, or another pile of paperwork waiting.

Said another way, staying productive requires taking breaks.

Think back to the last time you pushed well past your limits. There’s a good chance your attention started slipping, whether you wanted it to or not.

Weighing risks and rewards before putting client money to work or allocating it requires clear thinking, and it’s hard to do that when you’re running on fumes.

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When you’re extremely exhausted, you’re much more likely to have:

  • A shorter attention span
  • Slower response times
  • A decline in emotional control and cognitive sharpness

Said another way, when you’re running on fumes, you’re prone to making ill-advised or aggressive decisions.

Fortunately, there are steps you can take to prevent yourself from tiring yourself out excessively.

At the top of that list is getting ample sleep. The average adult needs roughly seven to eight hours of sleep per night.

During the day, make sure to take short short breaks. One of the easiest and most effective ways of doing this is by following the “20-20-20” rule for screen time.

Every 20 minutes, stand up, find an object at least 20 feet away, and look at it for at least 20 seconds. These mini-breaks help readjust your eyes and legs. They also remind you to reset your posture. That way, you’ll be more focused when you’re back to the task.

The Pomodoro Technique also offers a simple yet effective way of taking a break.

This involves working in 25-minute bursts, followed by five-minute breaks. After repeating this cycle a few times, you can take a longer break of around 30 minutes.

It’s best to treat those numbers as a starting point rather than an absolute rule you need to follow. Find the timing that works best for you and your workload.

The Benefits of Taking Short Breaks

You see, stepping away for a short while is helpful because it:

  • Reduces stress
  • Increases focus
  • Helps improve mental clarity and emotional regulation

As we’ve said before, your clients rely on you to provide them with sound financial advice. Your ability to deliver that depends in part on your being well-rested.

You can’t deliver sound recommendations when you’re working with a tired mind. At worse, you might even start making mistakes you normally wouldn’t when you’re well-rested.

So, the next time you find yourself having a long work day, don’t forget to get up, walk around, and take your eyes off the screen. Allow your mind to wander and relax or simply get some sleep if it’s already late.

Taking breaks or getting some sleep when you’re absolutely tired isn’t a waste of time. It’s part of doing great work since this can make a huge difference in the quality of your analysis, judgment, and advice.

Best regards,

Joel Litman & Rob Spivey
Chief Investment Officer &
Director of Research
at Valens Research

Today’s article only scratches the surface of what we share with our FA Alpha Members. If you want to get an in-depth analysis of market trends, uncover undervalued stocks, and more, become an FA Alpha Member today.

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