An Open Letter To Financial Advisors With Imposter Syndrome (Plus 4 Tips For Overcoming It)

If you’re a financial advisor struggling with imposter syndrome, you’re not alone.

A recent Inner Circle member asked me this question:

“James, in part thanks to your newsletter, my business has grown substantially over the past year. However, I sometimes feel like I still don’t know what I’m doing. I’ve done some research into this feeling and it seems like imposter syndrome. Do you have any resources for helping advisors in this area?”

His experience is a common one. According to an article published in the International Journal of Behavioral Science (titled “The Imposter Phenomenon”), 70% of people suffer from imposter syndrome at some point in their lives. So, let’s start by getting clear on the definition...

Interested in something specific about imposter syndrome? Jump ahead to:

What Is Imposter Syndrome?

Impostor syndrome was first identified in 1978 by social psychologists Pauline Clance and Suzanne Imes at Georgia State University. Here’s their original definition:

"The internal experience of intellectual phoniness in people who believe that they are not intelligent, capable, or creative despite evidence of high achievement."

Symptoms of impostor syndrome include:

Lack of confidence
Feelings of inadequacy
Anxiety
Self-doubt
Negative self-talk

And more. Impostor syndrome causes us to leave the possibility of success to others because we do not see ourselves as being anything like the sort of people we see lauded around us. Therefore, when we achieve a certain level of prestige or success, we view ourselves as impostors.

The root cause of impostor syndrome is a distorted view of what other people are really like. We tend to ascribe mystical qualities to billionaires, professional athletes, and celebrities that we do not have. In reality, they are people just like us.

Here’s the truth: EVERYONE is flawed.

Unfortunately, while we can view ourselves from the inside, we view everyone else from the outside. We are constantly aware of our own doubts and negative self-talk, yet all we know of others is what they happen to tell or show us.

Most people never let you see the raw, unfiltered side of their lives. They only show you what they want you to see. In my opinion, social media has made this worse. When we scroll through our favorite social media site, we only see the highlight reel of people’s lives. We do not see their troubled childhoods, their substance abuse problems, or their deep-rooted insecurities.

Impostor syndrome is particularly prevalent in the financial services industry, a field known for its complexity and the vast array of knowledge required to navigate it effectively. This industry encompasses a broad spectrum of financial topics, including investments, insurance, retirement planning, taxes, estate planning, and more. The sheer volume of information and the continuous evolution of financial regulations and products can be overwhelming, even for seasoned professionals.

This sense of being overwhelmed can lead to feelings associated with impostor syndrome, where individuals doubt their own capabilities and fear being exposed as a fraud, despite evidence of their competence and success. Professionals in the financial services industry may feel they must know every aspect of finance comprehensively to be deemed competent. However, this is an unrealistic expectation, given the breadth and depth of the field.

To make matters worse, the culture within the financial services industry can exacerbate these feelings. There is often a perception that one must project absolute confidence and infallibility to be trusted by clients and respected by colleagues. This can create a pressure cooker environment where admitting to not knowing something is seen as a weakness. Consequently, professionals might choose to hide their uncertainties and questions, perpetuating the cycle of impostor syndrome.

The reality is that the field of finance is too vast for any one individual to know everything there is to know. Recognizing this can be a first step in combating impostor syndrome. Embracing lifelong learning, acknowledging the limits of one's knowledge, and viewing gaps in understanding as opportunities for growth rather than as failures can help alleviate these pervasive feelings of fraudulence. Additionally, fostering a more collaborative and supportive industry culture where questions and doubts can be openly discussed without fear of judgment can further help individuals overcome the crippling effects of impostor syndrome.

(This is one reason why I recommend having a niche because it allows you to specialize in one area and become the go-to person for your specialty.)

In my experience, imposter syndrome in financial advisors is a close cousin of social self-consciousness call reluctance. This is characterized by hesitation to initiate contact with wealthy and/or powerful people. Financial advisors with this form of call reluctance typically view themselves as unworthy of high net worth and ultra high net worth people’s time.

One solution to the imposter syndrome requires making the leap of faith that other people’s minds must work similarly to yours. Other people have similar thoughts and feelings. For example, here are…

Famous People Who've Suffered From Imposter Syndrome...

Maya Angelou once quipped:

“I have written eleven books, but each time I think, ‘Uh oh, they’re going to find out now. I’ve run a game on everybody and they’re going to find me out.’”

Fortunately, she never let her fear of being “found out” stop her from writing beautiful literature that has enriched millions of lives. And, as a financial advisor, you should never let imposter syndrome prevent you from sharing your gifts with the world.

Another person who struggled with imposter syndrome is Emma Watson, of Harry Potter fame. In an interview with Vogue, she shared: “Now when I receive recognition for my acting, I feel incredibly uncomfortable. I tend to turn in on myself. I feel like an imposter.”

Say it ain’t so, Hermione! 😱

David Bowie once said, “I had enormous self-image problems and very low self-esteem, which I hid behind obsessive writing and performing… I was driven to get through life very quickly. I really felt so utterly inadequate. I thought the work was the only thing of value.”

In an interview with The New York Times, Howard Schultz (former CEO of Starbucks) said, “Very few people, whether you’ve been in that job before or not, get into the seat and believe today that they are now qualified to be the CEO. They’re not going to tell you that, but it’s true.”

There you have it. A literal billionaire - the man who grew Starbucks to the giant it is today - is telling you that even HE didn’t feel qualified to lead the charge. Okay, one more…

In her HBO special, Lady Gaga revealed, “I still sometimes feel like a loser kid in high school and I just have to pick myself up and tell myself that I’m a superstar every morning so that I can get through this day and be for my fans what they need me to be.”

So, let me emphasize: if you’re struggling with imposter syndrome right now, you are not alone.

How To Overcome Imposter Syndrome...

There is no step-by-step sequence for overcoming imposter syndrome. Anyone who tells you otherwise is either stupid or lying to you.

Overcoming imposter syndrome will likely be a combination of things tailored to your unique situation and how you feel. That’s why I’d like to share several of the things that have helped financial advisors…

Stop Comparing Yourself To Others

"Comparison is the thief of joy."

Theodore Roosevelt's words echo profoundly, especially in the competitive world of financial advising. It's a world where the race for more - more clients, more revenue, more recognition - never seems to end. But here’s the deal: that race is a mirage, especially when it fuels the fires of Impostor Syndrome.

I've seen it firsthand. High-flying advisors earning seven figures remain grounded, while others in the lower six figures strut like they've cracked Wall Street's code. It makes you think, doesn't it? Are these displays of confidence real, or just a mask for deep-seated insecurities? Here's a deep dive into the perilous world of comparison and practical steps to reclaim your professional confidence...

Unfair Matchups: Comparing yourself to others is like comparing apples to spaceships – it's not just apples and oranges; it's not even in the same category! We often contrast our inner turmoil with someone else's highlight reel, leading to skewed perceptions and feelings of inadequacy.
The Metrics Myth: We look at visible signs of success - flashy cars, designer suits, luxury vacations - and assume they're benchmarks of true success. But what about what’s not visible? The debt, the stress, the sacrifice? Remember, true success is more than skin deep.
Misguided Focus: By obsessing over others, you're not only losing sight of your own path but also squandering precious energy. Energy that could be spent innovating, learning, and growing in your own career.

Stick figure with money and stick figure without money, representing financial advisors with imposter syndrome

Document Your Accomplishments

One of the things I do to increase my productivity is use a planner to map out my day. In my planner, I have a section where I write down several “successes” from my day. I suggest you do the same.

You can even take some time to think about your past accomplishments. What have you done so far? Do you have any certifications? If so, you know more than the average person. Even if financial planning seems old hat to you, your clients view the work you do as magic. They don't have the same knowledge and experience as you do, which is why they use your services. In addition, the financial services industry ensures that you're constantly learning and improving through Continuing Education. Becoming aware of everything you've accomplished thus far can ease the symptoms of impostor syndrome.

From a psychological perspective, thinking and writing are different. Thinking can be unstructured, disorganized, and chaotic. In contrast, writing forces you to solidify your thoughts and make sense of what's happening. That's why it's important to write down reasons why you're intelligent, capable, and deserving of success.

Change Your Self-Talk

People with impostor syndrome harbor a variety of negative thoughts that can significantly impede their professional progress and personal satisfaction. Beyond feeling like a fake or attributing their success to luck, they may also experience thoughts like:

“I must do everything perfectly, or I’m a failure.” They hold themselves to an impossibly high standard, believing that anything less than perfection is unacceptable. This all-or-nothing thinking can lead to severe stress and a fear of starting new projects or tasks.
“I shouldn’t need help.” They might think that needing assistance is a sign of weakness or incompetence, believing they should be able to handle everything on their own. This can prevent them from seeking necessary support or resources, isolating them further.
“Everyone else is better than I am.” They constantly compare themselves unfavorably to others, focusing on their own perceived shortcomings while overlooking their strengths and achievements.
“If I succeed, I must keep doing more to prove my worth.” They believe that each success only increases the pressure to perform, leading to a cycle of never-ending expectations and anxiety.
“They’re going to realize I’m not as capable as they think I am.” They dread evaluations or feedback, fearing it will reveal their supposed inadequacy, even when they’ve consistently demonstrated competence and skill.

This type of self-talk is damaging because you tend to become what you think about most by creating a confirmation bias. If you think you’re lucky, you will look for evidence to confirm that belief. If you think you’re stupid, you will interpret everyday events as evidence supporting your so-called stupidity.

Addressing these thoughts is crucial for overcoming impostor syndrome. Recognizing and challenging these irrational beliefs, seeking feedback from trusted sources, and learning to accept compliments and acknowledge personal achievements can all help in mitigating these pervasive feelings of fraudulence.

Positive self-talk is a way to override these negative thoughts by replacing them with conscious, positive new directions. Is it easy to replace these negative thoughts? No. Will you change your life overnight? Absolutely not. But little by little, changing the way you talk to yourself will have a positive cumulative effect on your life.

A coach can help you with this. I no longer do coaching (the closest I come to coaching these days is through my monthly paper-and-ink newsletter) but a good coach can help you identify defeatist patterns and replace them with patterns that serve you.

ALSO READ: Should Financial Advisors Hire A Coach?

Banish Perfection

On paper, perfectionism might appear beneficial, particularly in a profession like financial advising where precision and attention to detail are valued. However, when perfectionism spirals into an incessant quest for the unattainable ideal, it becomes counterproductive. In reality, perfectionism can mask deeper issues of impostor syndrome, where the fear of being exposed as a fraud leads to procrastination and self-sabotage.

In the business world, aiming for "good enough" should be the mantra rather than striving for flawless perfection. This doesn't mean settling for mediocrity but recognizing when the effort put into making something perfect exceeds the benefits. For perfectionist financial advisors, this mindset can be particularly challenging. They may find it hard to hire employees or delegate tasks, fearing that no one else can achieve the same high standards. However, creating defined systems and processes, like a structured financial services onboarding system, can alleviate this issue by ensuring that tasks are completed to a high standard, even in the advisor's absence.

Perfectionists often set sky-high goals and then experience feelings of shame or disappointment when they inevitably fall short. This relentless pursuit of perfection can lead to a cycle of dissatisfaction and self-criticism. For financial advisors, every small mistake can seem monumental, overshadowing their successes and leading them to question their own competence and worth.

To combat perfectionism, financial advisors can start by setting realistic and achievable goals. Breaking down larger tasks into smaller, manageable steps can help reduce the overwhelm and make it easier to appreciate the progress being made. Additionally, embracing failure as a learning opportunity rather than a mark of incompetence can shift the focus from perfection to growth and improvement.

It's also crucial for perfectionist advisors to learn to delegate effectively. This involves trusting colleagues and employees to handle tasks and accepting that while their approach may differ, it can still yield satisfactory results. By letting go of the need to control every detail, advisors can alleviate their workload, reduce stress, and focus on what they do best.

Realize That Imposter Syndrome Can Be A GOOD Thing...

While often viewed negatively, impostor syndrome can have a silver lining for financial advisors. This complex phenomenon, characterized by feelings of self-doubt and fear of being exposed as a fraud, can actually catalyze growth, improvement, and remarkable achievements in the professional realm. Here are a few reasons why...

1. One of the hidden benefits of impostor syndrome is that it can foster a culture of continuous self-improvement and learning.

Financial advisors experiencing these feelings may engage in more self-criticism than their more complacent counterparts. While too much self-criticism can be harmful, a moderate amount can serve as a powerful motivator. It can propel advisors to strive for greater achievements and to close the gap between their current state and where they aspire to be. This relentless pursuit of excellence, driven by a dissatisfaction with current accomplishments, is a hallmark of many of the world’s most successful individuals.

2. The pressure to avoid seeming incompetent can actually enhance performance.

Financial advisors who worry about their reputation or fear being viewed as inadequate are often more likely to prepare thoroughly, stay updated on industry trends, and provide top-notch service to their clients. This heightened state of alertness and preparedness, a direct outcome of impostor syndrome, can lead to better outcomes for clients and, subsequently, higher satisfaction and loyalty.

3. The insecurities brought on by impostor syndrome can drive financial advisors to constantly seek new opportunities and challenges.

This can be particularly beneficial in the ever-evolving world of finance, where staying static can lead to obsolescence. The push to do more, be more, and have more can lead advisors to expand their services, pursue additional certifications, and adopt new technologies. This constant drive for improvement and expansion can set them apart from the competition and lead to greater success in their careers.

4. Embracing the discomfort associated with impostor syndrome can also lead to personal growth.

Stepping out of one's comfort zone and tackling challenges that seem beyond one's abilities can build resilience, confidence, and a deeper understanding of one's strengths and weaknesses. Financial advisors who embrace their inner impostor are likely to find themselves embarking on new, rewarding ventures that they may not have considered within their reach before. So, embrace your inner imposter and strive toward new challenges that, in the beginning, feel beyond your abilities.

You’ll be happy you did. 😄

About The Author...

Hey, I'm James Pollard. I'm the guy behind this website.

I've dedicated my career to empowering financial advisors to unlock their full potential. With a passion for marketing and a knack for cutting through the noise, I provide actionable strategies and insights that help financial advisors build better businesses.

I'm also the host of the popular Financial Advisor Marketing podcast. Beyond the mic, I'm constantly sharing my expertise through The James Pollard Inner Circle™ newsletter, which has grown to become one of the most successful communities in the financial advice space.

Thanks for stopping by and diving into my world. If you'd like to connect with me on LinkedIn, here is where you can find me.