In these times of greater financial uncertainty the role of the financial adviser is becoming more and more important. Whether you need to discuss your existing investments, discuss insurance or future investments, Paradise City Property can put you in touch with a UK qualified financial advisor.
The Role of a Financial Advisor
The main purpose of a financial adviser is to assist clients in the planning and arrangement of their financial affairs, such as savings, retirement provisions, tax treatment and wills. To ensure ethical practices, financial advisers must understand a client’s financial situation as well as their need for financial stability. Finance can be complicated and any adviser has responsibilities ethically to see that a client’s risk is minimised, and monetarily, that money is maximized within the established risk boundaries.
Financial advisers may help their clients invest for both long and short term goals. It is the financial adviser’s duty to determine the clients’ goals and risk tolerance and then to recommend appropriate investments. Generally, a long time horizon allows for the advisor to recommend more volatile investments with potentially greater risks and rewards. Such investments include direct investment in stocks or through collective investment products such as mutual funds and unit investment trusts/unit trusts.
If the client has shorter term goals, the adviser should recommend less volatile investments with shorter time spans. Such investments could include cash deposits, certificates of deposit, and short term bonds. While these types of investment generally have lower returns there is less volatility and there is less likelihood of losing principal capital. Although short-term investments can guard against loss of capital, their value can be eroded by inflation over longer periods of time.
Insurance is something that we take for granted, do automatically in our home countries. This is often due to our culture. We are used to the stories of the CIS insurance man coming to our door to collect five pounds a week. Nowadays, we are bombarded by adverts on the television for home insurance, travel insurance, health insurance and even insurance for our pets. With the growth of the internet, taking out this insurance, and indeed comparing quotes is even easier. Some might feel that that the role of the broker is now obsolete, but many people still prefer to deal with a ‘human being’ whom they can ask questions.
Strangely, when people come to Thailand they are often significantly under insured, if indeed insured at all. There are a number of possible of reasons for this. It can be due to such things as language problems, the perceived cost and not least laziness. What is strange about this is many of us come from developed countries where our infrastructure is far greater that that here in Thailand, but for some reason we feel that the risks are much smaller. When you also consider other factors such as the lack of consumer protection, accountability and sometimes just being in the wrong place at the wrong, this lack of insurance is looking like an even bigger gamble. We wouldn’t dream of purchasing a house or car in our home country without taking out insurance at the same time, so why would you do that here?
Whatever your financial needs, you can be confident that with Paradise City Property you will receive a confidential, professional service. Contact us today to find out more about our services.