Many questions can arise about investments given the current economic situation we are experiencing. Is it the right time to invest; should I wait for the markets to drop; is it the right moment to add to my investments or to sell; how; what...?
In other words, it's difficult to take decisions alone with a cool head regardless if you're a beginner or an expert.
That’s when an assigned advisor specialised in investing can help you, advise you and work with you. Their goal isn’t to sell you a particular product.
It's to work with you to plan out a short, medium and/or long-term investment strategy based on your projects for the future (buy a car, build a house or plan your retirement), your profile and the markets’ and life’s unknowns.
This information is essential. Regardless if your investor profile is that of a “go-getter” who wants to achieve potentially high returns or, on the contrary, you are more “conservative” and are considering less risky investments with more modest returns, your advisor will work with you to develop an approach that is both personalised and suited specifically to YOU.
They will introduce you to the different investment options available on the markets, explain the benefits, the downsides, the risks and the expected returns, all in clear layman's terms.
Without an advisor, people tend not to think about their investments very much and don't adjust them, even when they should, and miss investment opportunities. This is another benefit your assigned advisor can provide.
You won't have to follow the financial markets too closely.
During difficult economic times, when high responsiveness is required, they will provide you with objective guidance and make sure that you don’t make hasty, ill-considered decisions.
Most of the time, your advisor will be working with a team of portfolio management experts who have the necessary tools and the resources to propose the best products for the market and your situation.
It's up to you to decide if you want to be advised while retaining ultimate investment decision-making authority or if you would prefer to entrust complete management of your assets to specialists while closely tracking their progress and the choices made.
Investing is a good way to supplement your savings and attempt to make it grow, provided you’re well prepared for it. Here are the five fundamental questions you need to answer beforehand.
"The Personal Banker is a customer's key contact. He/she has a thorough knowledge of the client's situation and goals. Therefore, he/she is able to guide them towards the solutions best suited to their needs." According to Rafik Khendek, Lead Personal Bankers, and Elise Jacobs, Personal Banker at ING Luxembourg.
The answer is simple: no, not at all. Choosing between advisory and discretionary management offered by the banks is far from being a headache. It will depend on you, your financial knowledge and the time you are willing to devote to making your investment portfolio grow. To make things clearer, let's start from the beginning and review the main advantages of both.