Life’s expected or unexpected changes, present an opportunity for investors to consult their financial advisors about the strategies in place, to ensure these are aligned with the client’s goals and objectives for investment returns.
“Every investment strategy we present to an investor is based on the client’s risk profile, investment goals and objectives. What we always want to do before reviewing a portfolio is ensure that the goals and objectives are still the same, determine whether there has been a change in client’s life circumstances, and see if the plan needs to be modified in some way,” explained Jaime Toro CIMA®, sales manager and Senior Vice President at Popular Securities.
However, strategies should not be significantly changed because of what we see in the market in the short-term, such as fluctuations in the stock market, for example. In addition, strategies should contemplate diversification in investment products to minimize risk.
“If we believe a given strategy is still going to meet long-term objectives, then we don’t automatically should make any changes,” Toro explained.
Although there are investors who made adjustments or withdrawals to cover their short-term needs, Toro said that they did not necessarily change their goals or their long-term investments.
Our Popular Securities Advisory Group (PSAG) has decades of experience working hand in hand with financial advisors and their clients to design specific strategies based on the client’s risk profile and detailed financial plan.
“What’s happening in the financial markets at a particular moment is not going to change the long-term strategy, but we also have to position ourselves depending on what’s happening both in Puerto Rico and globally. In Puerto Rico, we have been in a recession for many years. For a long time, local investors ventured only in the island’s assets. Now, we need to replace these assets with globally diversified strategies,” the Popular Securities sales manager said.
Olga Cintrón, Assistant Vice President and PSAG manager, concurred with Toro that now is an excellent time for investors to contact their financial advisor if their goals and objectives have changed.
“We have an open architecture that enables us to use different investment strategy providers. In our managed accounts, we have a fiduciary role with the client. We need to always think about our client’s best interests, and as the relationship progresses we’re able to further identify areas of opportunity for them,” she explained.
Investment products and services are offered by Popular Securities, LLC, registered broker/dealer, member FINRA and SIPC. Popular Securities, LLC, is a subsidiary of Popular, Inc. and an affiliate of Banco Popular de Puerto Rico. Neither Popular, Inc. nor Banco Popular de Puerto Rico are registered brokers/dealers. Investment products are not insured by the FDIC or any other federal government agency; they are not deposits or obligations of, or guaranteed by, the Bank, its subsidiaries or affiliates; and they involve risk, including the possible loss of the principal invested.