Client ππ»ββοΈvs π€΅π»βAdvisor
π Risk
ππ»ββοΈ Client – I can’t handle the risk of losing capital
π©π»βπΌ Advisor – Greater risk is erosion of our financial purchasing power.
Inflation will turn out our money in to Powder.
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π Safety
ππ»ββοΈ Client – I need to keep my money safe.
π©π»βπΌ Advisor – Safety to me is preserving what your money will buy.
Safety isn’t avoiding risk if you avoid that you will face a real risk of asking your children money at your old age.
I would cheerfully invest entirely all my money in fixed income if someone would fix my living cost.
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π Growth
ππ»ββοΈ Client – I can’t commit long term. I think I need money any time.
π©π»βπΌΒ Advisor – Our focus should be on growth of income over a time by investing in great companies portfolio to achieve life goals .
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π Income
ππ»ββοΈ Client – I love certainty of returns.
π©π»βπΌ Advisor – Fixed income is an illusion. Equity is a growth asset and we want growth of income. Wealth building is a process of long term compounding via equity asset only.