In an increasingly complex and uncertain economic context, The figure of Financial Advisor It stands as a crucial element to achieve the patrimonial objectives of individuals and companies. Through a direct, personal and frequent relationship with the client, this professional analyzes the present and future personal and professional circumstances, and recommends strategic actions for the optimal management of heritage.
In our country, the figure of the financial advisor has barely relevance among the savers. Norz Patrimonia gives us some keys to know the figure of the financial advisor, even very unknown to the vast majorityand fundamental to achieve the objectives.
What is a financial advisor?
“It’s a Professional of the financial sector that, based on a direct, personal and frequent relationship with the client, analyzes their personal and professional circumstances both present and future and, taking into account their needs in the medium and long term, and, secondly, considering the uncertainties present in the system, recommends executing a series of actions for the client to achieve their patrimonial objectives“explains Rafael Rabat, partner of Norz Patrimonia, economist with more than 25 years of experience in financial markets having assumed different bank management positions. “These recommendations are dynamic over time and are adapted to the new uncertainties that appear in the system, as well as changes in customer’s heritage needs”says Rabat.
In our daily lives, we resort to professionals such as doctors, dentists, psychologists, mechanics and lawyers to solve specific problems. However, When it comes to our finances, the need for a financial advisor is often doubteddespite the Patrimonial management It is essential for stability and personal and family economic growth. So, Why have a financial advisor? “I would point out the question that many people usually ask themselves: What do I want a financial advisor if that already makes my bank for free“explains the partner of Norz Patrimonia.
How can a financial advisor help you?
A common perception is that banks offer this service for free. However, it is important to understand that, In the financial sector, there are three main types of companies: Credit entities (banks, boxes and credit cooperatives), Collective investment institutions (funds and investment companies), and investment service companies (Corporations and Securities Agencies, and Financial Counseling Companies). Only The latter are main to provide financial advice services, with clear and transparent remuneration for their services.
“All of the above can have financial advisors in payroll, but Only Financial Counseling Companies They have as the sole objective of their main activity provide the service of financial advice. Therefore, only these are dedicated exclusively to advising financially, being their remuneration for this clear and transparent concept ”, Rabat confirms.
The importance of financial culture
Spain has historically been a country with low financial culture. Basic economic concepts such as inflation, interest rates and investment diversification are fundamental for saving, investment and indebtedness management. For Rabat “It is this low Spanish financial culture that has Fact that has historically delegated the management of our finances in credit entities, and hence the talk of our bank or box, and not of our financial advisor as it does in other countries”
Is the service of a credit entity for free? No doubt the answer is no. The main activity of a credit entity is to take money from some and lend it to others, and from there obtain a margin. How does a credit entity earn money with a service that is not its main activity and for which it must hire resources? Basically, masking commissions and price differentials within the products it markets among its customers. The client sees a final yield to which a previous cost has already been detached. That is why the client believes that the service is free, but it is not. It has never been, and points out that it will never be.
Personalized financial diagnosis and investment planning
“It seems that we put the possessive pronoun ‘ours’ in front of a profession is because that professional solves a problem. And financial advisors are professionals with a high and specialized training in finance that understand what savings are and what it costs to save, who understand what is the investment And they know what to invest, and that they understand what indebtedness is and how far and why borrow”, Rafael Rabat says.
Continuous accompaniment and periodic review
“In addition to understanding the above, the financial advisors try to know their client very well to help it and, very often, to know him financially better than the client knows himself. The financial advisor then becomes a kind of financial psychologist who understands the client’s financial behavior and adapts it to the circumstances of his environment and the financial objectives that he has”, Continues the partner of Norz Patrimonia.