Counting on the expert
IN AN online global survey conducted by consumer measurement firm Nielsen in 2014, it revealed that more than half of its 30,000 plus respondents in 60 countries were positive about having their future fi nancial goals achieved, while just 28% pinned their hopes on their saving activities at that time. The majority of the respondents believed that they should save for their financial expenses in the offing, particularly to fund their children’s futures, higher education, firstand second- time property purchases, personal luxuries, fi nancial legacy, and new businesses.
“The greater number of respondents planning to save in the future versus saving now suggests an opportunity to better educate consumers on the saving and investment strategies that will help them meet their financial goals. It also shines a light on the growing wealth accumulation among consumers in the more developing regions of the world and their aspirations for upward mobility with a more secure financial future,” Oliver Rust, senior vice- president for Nielsen’s Global Financial Services, said.
Considering the results of the survey, financial planning is thus paramount in mapping out the financial well-being of an individual. It provides clear directions to meet one’s short- to long-term financial and lifestyle objectives, with the ultimate goal of successfully managing one’s personal financial affairs. As the survey suggested, an ideal financial planning goes hand in hand with providing reliable financial guidance, and only financial planning professionals could fill the bill.
Financial advisers are basically investment professionals who act as one’s partner in setting financial and personal goals and then figure out how to realize them.
According to Sheila S. Limon, senior channel manager for Direct Sales of Philam Asset Management, Inc., fi nancial advisers must be present in every stage of their clients’ lives, from establishing a career, getting married, starting and raising a family, and all the way to retirement.
“Different life phases have their own unique fi nancial needs, and a professional adviser — one who is knowledgeable on the different fi nancial tools available in the market — puts all of these together to achieve the goals of the client,” she said.
For Arslie M. Malipero of CPV Malipero & Associates Insurance Agency, Inc. and a financial adviser at Insular Life, fi nancial advisers pave the way for a better future for their clients and their families by encouraging and inspiring them to practice consistent and disciplined savings and investment.
He added that a financial adviser guides his clients in his journey towards fi nancial wellness.
“Financial advisers help their clients create a blueprint of a sound and stable financial future through systematic financial planning,” Mr. Malipero said in an e-mail to BusinessWorld.
Financial content online provider Investopedia breaks down in an article the step-by-step process of how fi nancial advisers go about their fi nancial advisory job. It begins with understanding the client’s current overall fi nancial health, followed by creating an actual fi nancial plan, and then setting up an asset allocation that fits both the risk tolerance and risk capacity of the client. Regular monitoring to review the client’s goals and progress is also provided by the financial adviser through in-person or online meetings.
Given this huge responsibility, fi nancial advisers are therefore required to have their clients’ needs at heart, said Ms. Limon, adding that clients today are more critical with their investments and won’t accept just any investment product presented to them. She said that looking after clients’ best interest will translate to loyalty. This puts an adviser in the best position to journey with them for the long term.
“The best wealth adviser is someone who not only has an excellent set of presentation skills, but aims to deliver client- focused solutions and options. Also, he or she must have the ability to deal with emerging needs for wealth and succession planning while maintaining competence and integrity. He or she should be able to integrate all of the client’s fi nancial needs into one cohesive and comprehensive plan,” she said.
“Financial advisers should learn current investment trends that affect the market [and] should fully differentiate low-, medium-, and high- risk investments and recommend products that fit their client’s risk tolerance,” said Mr. Malipero.
He particularly referred to the proliferation of investment- linked products or VUL plans, which combine insurance protection and investment in bonds and equity fund-based portfolio, as the present key trend in the local fi nancial investment scene.
For her part, Ms. Limon said: “The information technology revolution has made knowledge greatly accessible to more people. As such, anyone literally holds any information on demand at their fi ngertips.” Financial institutions are also banking on this, as they now offer more products and services online, she noted.
However, she shared that financial literacy in the country still has quite a long way to go.
“We have to reach out to more ordinary Filipinos, teaching them about the basics of budgeting, investments and protection, among others,” she said.
Mr. Malipero, on the other hand, said that local fi nancial advisers must elevate their expertise on fi nancial planning and other related fields by pursuing further studies and by enrolling in various training programs.