Episode 20: Swiss Banks, UK Budget - A Closer Look With Tom Pewtress, Paul Butler and Carla Smart.
Taking a look at what potential options you may have when considering how best to manage and invest your money.
Hi welcome to The Expat Investor Podcast, I’m Tom Pewtress – Head of Global Partners here at Skybound Wealth, and today I will be taking a look at what potential options you may have when considering how best to manage and invest your money.
Managing your investments can be an arduous task, especially when the market feels extremely volatile as we have seen this year – or in particular if you’re nearing a major milestone like retirement and you’re afraid of making a misstep.
Luckily, though, you have different options to help guide you on your investing journey.
I am going focus on looking at how Financial Planners, Robo-Advice, Private Banks and Discretionary managers may all play a part but how they differ from one another.
So first off, I am going to start with Robo.
Over the past decade thanks to the advancements in technology, robo-advisors have grown in popularity for their hands-off and low-cost approach to managing your investments.
Now let’s take a look at almost the exact opposite - a Financial Planner – where this is a personalised service for you.
A Financial Planner is an individual who assists clients with specific, immediate financial matters — like your investments, insurance, tax planning or even estate planning. You can work with a financial advisor just a few times or you can choose to have an ongoing relationship with them.
It’s important to note that a financial planner can be more helpful to your overall financial health since they can provide a more holistic approach to managing your money. Planners can provide recommendations on more than just investing, including budgeting, spending, major life events, tax planning and more.
Now let’s take a look at Discretionary Investment Management
Discretionary investment management is a form of investment management in which buy and sell decisions are made by a portfolio manager for the client's account. The term "discretionary" refers to the fact that investment decisions are made at the portfolio manager's discretion. This means that the client must have the utmost trust in the investment manager's capabilities.
Discretionary investment management is typically tailored to High-Net-worth clients since these accounts have higher minimum investment requirements, often starting at $250,000.
Finally - What Is Private Banking?
Private banking, also known as “relationship management,” pairs banking clients with individuals or teams that handle all of their financial tasks within the bank.
The clients can skip the teller and call their private banker directly to get help or complete transactions. The private banker is already familiar with the client’s specific financial situation and is in an ideal position to make suggestions and recommendations.
A private banker helps craft a financial strategy and reduces friction when connecting you to additional banking resources. Private bankers should be well-versed in your financial situation and familiar with your short- and long-term financial goals.
At the end of the day, it’s important to understand who you are dealing and what they can do for you. Always ask yourself what role will this play?
Financial planners offer that human interaction and sounding board for you to talk to. In some cases, they may even offer the services of Robo, Discretionary and Private Bankers if that solution is right for you. I wanted to cover off today’s topics as I have found so often people trying to compare services like these and others when really it is apples and pears being compared.
There is a time and a place for all of these services and sometimes in conjunction with one another. I believe onboarding a Financial Planner in some capacity can help you navigate these services, and they can sit on your side of the table when making these decisions.
Whatever you do, do your due diligence, understand your fee structure and whilst fees are important, they are not everything. Remember buying Gucci from the knock off shop isn’t the same as buying real Gucci.
This was recorded on the 06/12/2022 and all information was correct at the time of recording. This podcast is for educational purposes only and is not a personal recommendation. If you’re unsure what’s right for you, you should seek advice. Past performance isn’t a guide to the future, and investments rise and fall in value so you could get back less that you invest. Thanks for listening, goodbye.
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