La nostra esperta Ilaria Rossato è qui per farci da guida. Ilaria è la Responsabile Prodotti di Investimento in Solution Bank e ha un’esperienza decennale nell’ambito dell’analisi e della consulenza finanziaria, anche in supporto di grandi investitori istituzionali.

Here is what we asked her:

What is the purpose of counseling and what are the reasons why each of us should engage a counselor?

One of the main objectives of financial advice is to protect the investor’s wealth over the long term. The market environment is changing, and in recent years defending assets against inflation is becoming a crucial issue for everyone. The typical “mistake” one is likely to make is to want to beat inflation in the short term, thus loading the portfolio with risk: however, this choice could prove counterproductive or not in line with a long-term goal, which is asset protection. For this reason, it is useful to rely on the figure of the advisor who, with proper planning, makes it possible to join together the client’s objectives and needs, such as protection or growth of invested capital, time horizon, risk tolerance and more. Relying on advice also makes it possible to avoid cognitive bias, which often occurs when making decisions independently and can result in entering and exiting financial markets in a disorganized and unconscious manner.

How does long-term financial planning work?

Generally, one acts with a “strategic” type of allocation, i.e., a long-term allocation that, through the construction of a diversified portfolio with a certain degree of risk defined with the investor, allows one to achieve long-term objectives such as protection or growth of the invested capital. In the short term, the portfolio may experience fluctuations in value, which is why a gradual approach of entry into riskier markets, such as investing via CAP (Capital Accumulation Plan), can be useful. This type of planning allows market entry on a cadenced basis, typically monthly, quarterly, and semi-annually, to mediate the purchase price if the market experiences a downward swing. This type of strategic allocation can be complemented by an allocation called “tactical,” which focuses on the market cycle or recent news, and is accomplished by buying or selling certain instruments in a “tactical” manner, that is, in line with short-term expectations in order to increase portfolio profitability.

Can planning therefore also be managed to meet needs in the short term?

Financial planning is by no means only concerned with long-term choices, such as supplementary retirement or estate planning, but must also be able to meet short- and medium-term goals, such as the need for liquidity for an upcoming purchase or expenses related to one’s children’s studies. In this case, planning may involve periodic receipt of flows (interest, dividends, and coupons) or investment in highly liquid instruments, where liquidity means the possibility of selling the instrument quickly and without capital losses, or-at most-with limited losses.

We ask for help from our expert Marco Biondini, Head of Marketing and Banking Products at Solution Bank. During his career, which boasts a good 18 years of experience within our bank, he has acquired transversal skills in various fields.

This is what we asked him:

What are the main challenges you face in managing your daily expenses?

In recent years, managing daily expenses has become more complex due to the rising cost of living. Since the post-pandemic period, we have witnessed an increase in mortgage and financing rates, as well as rising costs for utilities and basic necessities. In this scenario, the key word is ‘need’. It is crucial to be able to identify one’s needs and to distinguish essential expenses, such as those related to home and family, from expenses related to personal pleasures. The goal should be to be able to balance these outgoings, allocating a portion to savings, even a modest one, to build a solid base that is indispensable to cope with unforeseen events and future projects. Planning correctly is the first step to economic stability.

What role does the bank play in supporting customers in their personal financial planning?

Financial planning is a highly individual process that depends on the specific needs of each individual. At Solution Bank, advisors are available to help clients define customised solutions together with them. If the goal is to preserve a sum for a future project, a time deposit could be the ideal choice, as it guarantees a certain return against the unavailability of capital for the agreed period. Insurance policies also offer preventive protection, protecting family and assets, as well as an opportunity for succession planning. Finally, immediate liquidity needs for the purchase of important assets, such as a car, can be met by a loan, without having to intervene on one’s savings.

What services does Solution Bank offer to help customers better manage their finances?

At Solution Bank, we focus on practical and effective solutions to simplify daily financial management. We recommend the use of payment cards, which make it easy to monitor transactions via internet banking and mobile apps. Paying utility bills on your current account allows you to keep track of your recurring expenses, while our Solution Mobile app provides informative statistics on your personal budget, as it allows you to see your monthly income and expenditure projected over the previous 12 months. These are tools that can be supportive, but awareness of one’s budget and careful planning are the starting point. The real added value is the relationship of trust established with our advisors, who build a tailor-made financial plan together with the client.

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