Help, I m Rich!: Your Compass to a Value-Adding Private Banking Experience

Part Two Conclusion

We started this part with a promise: “We follow a step-by-step approach to unmask the secrets behind investing.” We trust that you are now better prepared to deal with your private banker. Investing a portfolio is a complex process, which makes it even more important to be aware of the many aspects involved in investing. The more informed you are, the higher the quality of your conversations with your private banker will be, the more professionalism you may expect from him, and the more likely that you will develop a higher level of trust and confidence in your private banker.

To navigate through the many threats that potentially undermine the returns of your portfolio, you’d better be prepared. In Part Two we have explained that, in the context of investments, “being prepared” means:

• Knowing why you need to invest
• Defining your risk–return profile
• Understanding which risks are threatening your portfolio’s performance
• Assessing the tools that are available to measure and mitigate these risks
• Having an understanding and appreciation of basic investment rules and principles that (should) apply to the management of your portfolio
• Deciding on the type of relationship you wish to establish with your private bank
• Conscientiously selecting the private bank and private banker that suit you best

To be prepared to manage a portfolio responsibly requires specialist knowledge and (preferably) experience. This might be too much to ask of the average private investor. ...