Preliminary risk appetite assessment
Like a mother would taste food prior to feeding her child to asses if it is too hot or sufficiently warm, financial advisors will use time proven tactful questions that ordinarily call for an instinctive response, to perform a preliminary check on the risk appetite of an investor. This enables the investor set the stage for further discussions into more appropriate investment avenues.
Shortlist appropriate investment avenues
The mother will then feed her child with the right blend of food, combining appropriate quantities of different food classes to ensure steady and healthy growth of her child. The financial advisor will identify and shortlist for the investor possible avenues that give an appropriate return based on the desired projected growth.
Break down the Main Objective to Smaller Achievable Goals
The child’s big dreams of becoming a doctor or a master craftsman are broken down to simpler progressive goals leading to the ultimate objective. The advisor will help an investor breakdown the big “dream corpus” to smaller and more achievable goals with milestones to indicate progress and achievements.
A helping Hand during Economic Crisis and Volatile Markets
When faced with calamity, she is a strong re-assuring voice of strength and when hurt, the mother would nurse her child back to health. As a financial advisor would help you navigate through economic crisis and volatile markets keeping track of your investments when you are engaged with other more pressing matters.
Like a ship cannot set sail to the open seas without a captain who knows the routes, tides and dangers of the seas, so does every investor need a financial advisor to help meet his/her objectives.