https://youtu.be/2i_qK-XE2NQ
“Far more important than trying to guess whether the market will go up or down is to invest and stay invested,” said Mr. Mauricio Tchilingirbachian—CFA Charterholder from the CFA Institute, a member of the team that manages Nobilis’s four investment funds (AUM USD215 million), and a member of the Investment Committee—during the conference “Financial Advice and Portfolio Construction.”
The event—organized by the Universidad ORT UruguayGraduate School of Business Universidad ORT Uruguaytook place on Wednesday, September 28, 2022, in a hybrid format (some participants attended in person, while others joined via HyFlex®). It was part of the Management and Business Lecture Series.
Portfolio, Finance, and Emotions
The expert mentioned three pillars that make up financial planning:
- The cornerstone of the portfolio. It involves diversifying the client base in order to grow and expand.
- The financial pillar. It covers saving and spending, as well as debt, retirement planning, and estate planning.
- The emotional pillar. It relates to financial well-being, trust in the advisor, success, and a sense of accomplishment, as well as providing peace of mind to the investor.
“The emotional aspect of financial advice—the emotional pillar—is one of the least discussed, yet one of the most valuable.”
Comfort and risk
The expert explained that, when it comes to investing, many people choose investments that only go up in value, rather than those that experience distinct periods of growth and decline but may yield higher returns in the long run.
According to Tchilingirbachian, this is because, in that way, “we feel comfortable,” and he added,“We’re risk-averse; we don’t like to takerisks.”
The Need for the Plan
The financial markets are a vast and dynamic landscape. Developing a sound investment plan to achieve your goals is essential.
“Why do we need a plan? Because it provides structure along the way, defines the best strategy for achieving our long-term goals, keeps us focused, and filters out the ‘noise’ of the news; it allows us to assess deviations and capitalize on opportunities, and it gives us clarity for day-to-day decisions and peace of mind.”
The keys to a successful experience
Financial planning and the investment process are essential to achieving long-term goals.
Tchilingirbachian outlined four key factors for a successful investment experience:
Get familiar with how the markets behave before investing.
Take a long-term view and be patient.
When emotions run high, revisit your plan.
Review your plan frequently.
Finally, when choosing a financial advisor, it is essential to seek references, verify their credentials and the firm they work for, understand the type of services they offer and the associated costs, determine whether they work independently or as part of a team, assess how many years of experience they have, and identify the types of clients they typically advise.
A financial advisor should take the time to explain things to clients and answer their questions. They need to inspire confidence and convey a sense of security.