Portuguese translation

Choosing a new financial advisor

Some events that happen in life can make you rethink your financial planning situation. Having accumulated a wealth of savings requires you to choose a truthful and skilled team to trust taking care of your money. It is your responsibility to look after your money wisely, choosing a partner whose interests are entirely aligned with your own is paramount.

 

In the wealth management industry there are four major types of financial planners:

 

  1. Planning by the hour, like an accountant or a lawyer who often charge their clients high fees.

  2. Fee for planning advisors, who usually take a fixed fee for consulting, no matter what actual investments are made.

  3. By far the most popular are the fee or commission planners who are compensated by the level of fees your account generates (from investing in their company products) or the commissions generated on trades (popular for bond trading these days).

  4. A hybrid approach.

 

At Horn Eichenwald you will have a team of investment professionals working for your best interest. We have constructed customized solutions for high net worth clients and their families for more than two decades. We work with a fixed fee plus an optional performance incentive structure, in order to always align our interest with yours. We have no products to sell, commissions to generate or hours to bill.

 

Calculating the return on your investments without accounting the underlying risk that was taken is not wise. In order to define a good financial advisor, you need to understand what approach the advisor takes, when to allocate your assets and under which conditions the decisions are made. You need to evaluate if the decisions are made properly and determine if those decisions were made with an extreme focus on the risk-return relationship applicable to your time horizon.  It is crucial to analyze the advisor’s philosophy and ensure it is consistent and efficient. 

  

Follow this link and contact us for a meeting today and see how we can make a difference!