Forgive me financial advisers, but their tips are often unintelligible. Moreover, I’m not the only one who thinks so: 50% of investors do not fully understand acknowledge the advice of his counsel, and that nearly 90% of professionals considered to have done his job and left her satisfied customers according to a etude which echoes the Gestiohna brokerage.

Another report, prepared by the Centre Inverco gives us more data and suggests that the more dynamic and younger the investor, the more knowledge you have of financial products. The trouble is that the profile of the average saving is, rather, that of a man older than 50 years and a conservative in their investments.

To facilitate understanding between client and consultant, Gestiohna includes “10 key concepts that every investor should know in times of crisis” and which I reproduce verbatim:

REDUCTION OF BETA is the risk indicator reflecting the sensitivity of a stock to market fluctuations. With a beta less than one, the action will tend to collect only part of the market movements, making it more stable and talked of a “defensive value.”

Problem subprime mortgage credit risk borrowers (people with no income, no job, no assets) in the U.S. residential market, which highlighted the shortcomings of a system based on subprime mortgages and was one of the triggers for world economic crisis. (more…)

Social networks not only are revalued in stock (up to 377% percent in the last year), but also help predict the vagaries of stock market, according to some studies. In this context, it is easy to see why over 80% of financial adviser believes that over the next five years, social networks help to attracting customers and also enhance the relationship with them. Currently, between 15% and 20% of the investment is captured through social network.

Behind this trend, in the words of Marc Garrigasait, president of Koala Capital SICAV, the transparency that social networks provide the financial world. “If you are transparent, investors will appreciate what this means more empathy and more benefits,” he says.

Over 70% of financial advisors are registered in any of the social networks, especially Facebook, LinkedIn, and Twitter Unience, according to a survey on the use of social networks by EFPA Spain (European Association of Advisers and Financial Planners -Heritage). The vast majority believe that social media are very useful for several reasons: because they represent an efficient channel of communication, constitute a direct and easy communication, are a good tool to keep abreast of new trends, and consider marketing tool  and online advertising.

Part of my job is to provide financial adviser personal finance workshops in different communities in the city of New York. One of my clients who took the workshop in July last year came to a follow up visit to review your credit and tell me about their financial plans. One of the questions I asked is whether there was any part of the class that had affected more than others and she replied: “I loved the phrase that said that no matter how much you save, but do it often.” Behold the Where did this phrase.

Although I take the copyright of them, the book “The Richest Man in Babylon” by George Clason inspires this phrase. A wealth of knowledge that this book explains is that the basis of wealth is to save ten percent of your income. This is something many people can do, but the concept of saving 10% of a salary that is small is something that seems as if half of our check.

It is easier if instead of focusing on the amount we should save the frequency that this should be done. Try to save an amount you feel good about it, it need not be much because the end is not what matters, what matters is that you do each time you receive an income. No matter whether they are $ 1, $ 5 or $ 50. Save what you can but it is constant, and at the end of the day you’ll get used and saving part of your life. Choose the percentage that suits you and everything will be as it should be.

My client has been able to save more than $ 4,000 in just 10 months and thinks plans to continue saving to buy their own home.

Many of our employers give us the opportunity to get our salt lakes in the form of deposits to our checking or saving account. But many of us are unaware of the great advantage that this product, completely free, we can offer to help you save.

Part of my job as a financial adviser is to educate my clients a major advantage in financial life is saving. The more we save more we realize how difficult it is, and how easy it is to spend everything we produce. The reality is that we are used to stifle our resources and this cycle is repeated at each check charge. And if someone told you: I have the solution to your problems! You can spend all there on your account, and as it will be saving for your future, your education, for your own business, for your holiday around the world and much more. And best of all it’s free. This sounds a little science fiction, but many people do it every day for recovery and live happily have made the decision. (more…)

Understand why they are investing

One of the keys to successful investing is to identify your investment objectives, and period during which they invest. What do you do with your money?

Your goals and deadlines

When investing money, many people have a specific goal in mind. If this is the case for you, you need to decide what time frame is attached to that goal – short term, medium term or long term?

Instead of having a particular investment objective, some people may want to invest a sum of money, such as an inheritance. If you are in this situation, you need to decide what you want from that money. Want to use the money in the next year or two? (In which case you are an investor in the short term).

Do you want a regular income? Or do you want to achieve capital growth long term? (more…)