A financial advisor and financial wealth manager should understand the fundamentals of their industry and their clients, says Israel Katz, who teaches finance at Bar-Ilan University.
He is an author of the new book “Financial Management 101.”
He also writes about the topic in “The Art of Financial Planning,” which has just been published by Simon & Schuster.
“You need to understand that these are people who are very knowledgeable about their business and they have the knowledge and experience to make smart decisions,” he said.
He also recommends that advisers work closely with their clients and work closely together.
“I recommend that they do this for a lifetime.
It’s a good way to have a long-term relationship.”
Katz is an advocate of a retirement portfolio, and he says a good strategy is to make sure that you have at least $1 million in your savings account and that you’re able to save at least 10% of your income, and perhaps more.
The key, he says, is to understand how the money is being used.
“A lot of the time, you will need to use the money for investment,” he explained.
“So if you don’t have a good investment strategy, it’s very important to have it in your portfolio.”
Katz says there are two main types of people who can be successful with their retirement savings.
“First of all, there are the people who have a great deal of experience in their field,” he says.
“They have the experience of investing in stocks and bonds, or a diversified portfolio, so they have a lot of money in their portfolio.
Then, of course, there’s also the people that have a very solid portfolio and they can handle the financial crisis.”
The problem with people who don’t understand what their clients are going through, Katz says, “is that they are probably the ones who are going to get hit hard by the crisis, because they have an investment strategy that doesn’t make sense to the world.”
You need to have at best a 50% allocation to your portfolio, he said, and that means you can’t take money out of it if you need to.
“That means you have to be very careful, very selective about how much money you invest and how you use it,” Katz explained.
In addition, there will be a lot that you can do with your savings that you don of course want to do.
“If you’re investing in the stocks, you want to be able to sell it, you need a certain level of stability, you have a certain amount of leverage, you can hold onto the money and invest it,” he added.
If you’re doing something with your money, you also need to be careful.
“When you are investing, you should be doing a lot,” he advised.
“And you should invest the money in things that are safe.”
He advises people to consider the cost of living in Israel, the level of the country, and whether it is a safe place to live and where they are likely to be spending the majority of their income.
If the cost is high, he suggests investing in a business with high profits.
“Or, you could invest in a safe investment.
You can’t do it without a certain degree of risk,” he noted.
If your portfolio is low, it can be good to diversify your investments, he added, because the more you have in your retirement account, the more stable your portfolio will be.
“What happens when you have less money?
If it’s high, then it’s not very risky. “
Then, if the returns are low, the money you have invested is not very stable.
If it’s high, then it’s not very risky.
If a lot is being invested in stocks, that’s a sign that you should have some investments that are riskier than the ones you have,” he concluded.
Katz also recommends making sure that your money is invested in real estate.
“It’s a very important thing,” he stressed.
“Because if you buy a house, you are buying a house that is not safe.
You are investing a lot into a company that is a real risk.”
He said it is important that you look at the pros and cons of investing, and then make a decision.
“For example, a home is a good place to invest,” he told The Jerusalem Times.
“The good thing about investing in real property is that you are not buying something with no risk.”
In general, he advises people who do not have a large retirement savings to take advantage of the tax deductions that they can get.
“But in general, the tax deduction is a great thing for people who already have a retirement savings account, but also for people with very low or moderate income, who do have some money to invest in real properties,” he continued.
Katz added that there are many people who think about their retirement account every year.