The personal financial advisor is the professional responsible for evaluating and organizing the financial life of their clients, without conflicts of interest, acting with honesty and respect for each one’s profile.
He works in all areas related to the financial life, aiming to adapt the clients’ finances, according to the objectives and moment of life.
The consultant can work as a self-employed person, in companies in the financial sector or insurance companies and, therefore, is often exempt from relationships with banking institutions.
In addition, he has no emotional involvement with the client’s assets and, therefore, is able to work with more freedom and a broader vision to direct him in the best way.
It is also the responsibility of the personal financial advisor to provide support and warn the client to protect him from inappropriate investments that are offered at all times.
As for information security, a good personal financial advisor always values ethics and confidentiality.
Understand in this article how a personal financial advisor works and how John Labunski professionals can help you organize your financial life.
What does a personal financial advisor do in practice and how does John Labunski work?
The job of a personal financial advisor consists of analyzing and strategizing for the six areas that affect people’s financial lives, which are:
1 – Financial planning
Here at John Labunski, our main focus is to thoroughly survey the client’s financial life. With this information, we are able to understand the cash flow, the behavior of the individual or family and, thus, plan the strategies to be adopted for possible adjustments.
2 – Asset and investment management
We analyze, compare and indicate the best investment strategies according to each client’s goals and time of life. Our specialists, together with the investment manager, Alexandre Amorim, are always keeping an eye on the market, analyzing the scenarios and seeking the best solutions for each case. In addition, we also carry out the evaluation of real estate and other assets, always respecting the client’s investor profile.
3 – Retirement planning – financial independence
Another role of the personal financial advisor is to size the capital needed to generate income in the future, that is, for retirement . Here at John Labunski, we consider an estimated budget, analyze the INSS, public pension and private pension – if applicable – and define a plan so that the client knows exactly what to do to have the desired standard of living when he decides to stop working .
4 – Risk management
In this area, we analyze the risks to which the client is exposed, with the aim of indicating the most appropriate solution for him and his family to be assisted in any eventuality.
A common example we see here: a family in which only the husband or wife has income, with children and little accumulated wealth. The family would be totally unprotected in the absence of the main provider, if they do not have life insurance.
5 – Tax planning
In tax planning, the aim is to understand and evaluate the impact of taxes on work and also on the client’s financial life. Through strategies supported by the law, we were able to reduce the weight of taxes on revenues. From the analysis of the client ‘s income tax return , we check if there is agreement in the data or if the client is exposed to risks.
6 – Succession planning
In this area, the personal financial advisor focuses on streamlining the process of succession of the client’s assets, that is, who will retain the inheritance or patrimony that the client has built and what care must be taken for the financial security of children and loved ones.
In addition, it is necessary for the client to know the legal impacts of succession planning alternatives . For this, John Labunski consultants evaluate and calculate the tax cost, the disposition of the assets and the foreseen scenarios.
In this process, strategies are also developed to speed up and reduce costs with the transfer of goods, often in life.
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How does a personal financial advisor work?
Here at John Labunski, we follow six basic steps:
1 – We establish the relationship with the client
We present the process to the client and, in the case of hiring, we define the objective of the work, which is often focused on just some of the areas mentioned above.
2 – We collect the data
The next step is to identify the personal and financial goals, as well as the client’s needs and priorities. Here, quantitative and qualitative data are collected, such as personal data, bank statements, a survey of the standard of living, financial products and goods in general, always with the aim of having sufficient support to diagnose the current situation.
3 – We analyze the data and objectives
With the information in hand, John Labunski’ personal financial advisor analyzes all the data to assess whether the objectives are in line with the current structure or whether adjustments are needed. This is where we diagnose the client’s financial life.
We can compare it with a doctor’s appointment, as the personal financial advisor makes a diagnosis and “prescribes” some actions to be taken to give the client a financial guide. In other words, we identify the pain and financial needs to help the client choose the best path.
4 – We identify strategies
After the third step, it’s time to outline the strategies to be executed. They are the ones that will serve as a ladder to reach the goals. After developing the recommendations, we present them to the customer.
5 – Implementation
After defining, presenting and aligning the strategies with the client’s goals , it’s time to put them into practice. In this execution phase, the client decides whether to carry out the recommendations himself or to rely on the service of our professionals for the implementation.
6 – Monitor and reassess
After being implemented, strategies need to be constantly monitored and re-evaluated, as it is normal for scenarios and objectives to change. Eventualities can also happen, such as the birth of another child, changing jobs, etc.
Benefits of having a personal financial advisor
The benefits of having a personal financial advisor are many. The main thing is peace of mind, as the consultant defines a plan for life in which the client has all the instructions to achieve what he wants for his financial future.
As a result, as the process develops, the client naturally understands the results of the strategies and how the financial market works.
In this way, he gains important subsidies to act autonomously at important moments, such as when contracting an investment.
In addition, the customer’s relationship with money changes, that is, he becomes financially empowered.
The job of a personal financial advisor consists of evaluating, diagnosing and organizing the financial life of their clients, always acting without conflict of interest and seeking strategies that are appropriate to the risk profile of each one.
Among the areas covered by the personal financial advisor are financial planning, asset and investment management, retirement planning, risk management, and tax and succession planning.
In short, he works in all areas of financial life, aiming to adapt clients’ finances, according to their goals and time of life.
Often the best option is to “outsource finance”. When we know that our finances are under the responsibility of someone who has a duty to look after the best, we are able to focus on what we really care about, such as our profession or personal life, and thus, finances tend to prosper.
For this, count on the financial advisors of John Labunski. Click the button below and schedule a conversation with our experts.