Before consulting services offered by a financial advisor, it is worth asking two important questions.
What type of investor are you?
How you invest your money depends on a number of factors: your age, financial objective, desired return, investment horizon, risk profile, financial experience (both yours and the company you choose!), net worth (tangible and intangible assets and liabilities), desired diversification of those assets and liabilities, liquidity, cash flow needs… These are only the most important.
Understanding your investor type and risk profile can help you determine what type of investment approach is most appropriate, so that you can create a plan that reflects the standard of living and financial goals you desire.
How to choose a financial advisor?
A financial advisor can help you design and execute an investment plan to be monitored continuously, rebalancing when necessary to achieve plan objectives.
A respectable financial advisor will keep you informed of the evolution of your portfolio, provide reliable information for important decision making, to empower you with greater control and organization of your investments. He/she must be certified, educated, honest, dedicated, have high ethical values, and extensive knowledge of portfolio construction, investment management, and capital markets in general.
Take some time to answer these questions. With them answered, your first meeting with your financial advisor will be a positive one that will help you start your professional relationship on the right foot.Read More
Some of the most frequent fears and concerns of clients when investing are the following:
- Loss of money;
- Poor management of investment portfolio;
- Failure to achieve desired cash flow objectives and performance;
- Lack of protection and segregation;
On the other hand, the most common inconveniences and frustrations of clients is the inability of their financial advisors to organize, present, and communicate clear, easy to understand portfolio analysis and performance. The lack of communication and understanding of the client’s profile, account objectives, and few follow-up meetings are also characterized as frustrations.
To address these concerns and frustrations, financial advisors offer solutions focused on providing continuous monitoring of portfolio assets and liabilities, are educated at behavioral finance, understand client fears and irritations, and help them calmly navigate through them, based on an ideology: the more communication, the better!
The company that provides financial advisory services can satisfy the expectations of its clients if it relies on a team of innovative professionals with adequate technical training, that present tailor-made risk adjusted solutions in a clear and easy to understand manner, which serve as a guide to navigate the market and manage objective based investment portfolios.
Sweetwater Securities is backed by experienced professionals and a network of leading financial counterparties which provide technological tools to mitigate, control, and eliminate any fear or worry of its clients.Read More
Being part of the management team of a financial services advisory firm is accompanied by responsibilities and considerations that are indispensable for its success.
1- A critical factor for that success is the protection of client assets via well-defined plan objectives, providing an excellent service that allows the quantity and quality of relationships to grow.
2- Transparency, trust, and privacy are of great importance. For this reason, client files must be strictly confidential, and by law cannot be shared with third parties.
3- Today’s financial system is global and international regulations affect all markets, not just local operations. It is important to be up to date with all financial regulations, and to have the necessary certifications and standards the market requires.
4- To ensure its sustainability and profitability, a financial advisory services company must seek opportunities created by different market trends, and be informed of the changes that occur in a timely manner. This allows us to work with clients constantly to achieve their objectives.
5- It is necessary to execute the operational and commercial plan efficiently and promote teamwork. The company must focus on the client and work hard to mitigate their fears, worries, and frustrations.
6- Differentiation is achieved by providing a high-quality service, with continuous training and client education.
7- The financial advisor should be open to offer innovative solutions that complement the products and services offered.
8- To continue generating responsible growth, the financial services company must constantly invest in its most important asset, its human capital. The positive results that this produces will contribute exponentially to results and gain client confidence.Read More
Knowing and understanding the following financial terms will help you entertain a more effective communication with your financial advisor.
Financial planning: It is a process by which the foundations of financial activities are defined and projected, with the objective of minimizing risk and taking advantage of opportunities and resources.
Family Office (FO): These are organizations that are responsible for managing the investments and funds of families with a high economic profile and high net worth.
Single Family Office (SFO): Structure that handles the financial and personal affairs of a single family.
Multi Family Office (MFO): Conceptually it is an extension of the wealth management model. A business that allows firms to commit themselves and establish holistic relationships with fewer clients, on a base of tailored solutions, determined expertise and efficient service.
Investment categories: Group of securities that exhibit the same characteristics, behave similarly in the market and are subject to the same regulations. The three main categories are: variable income (stocks), fixed income (bonds) and cash (money market instruments).
Bonds: Debt financial instruments used by private and public entities to finance their funding needs.
Equities: Financial assets that represent an ownership share in a company.
Sectors: Way to classify industries in the market. For example: consumption, energy, financial, healthcare, industrial, technology, materials, telecommunications, etc.
Estate Planning: Process that allows a hereditary transmission based on the desires of the inheritor and the protection of the needs of their effective environment in a framework of equality. It is not a single act, but a process where a series of activities are developed in a space of time for a common objective.
Account aggregation: Service that consists in the consolidation of all investor’s accounts and information in a single “Balance Sheet”, where their cash, bank deposits, savings accounts, loans and other investments are shown.Read More