An explanation of the counselling process

Financial patrimony is a valuable asset which must be put to work in a professional way; it allows us to keep up our lifestyle or, in the case of companies, it governs their capacity to maneuver when confronted by unexpected business eventualities. For this reason a professional, independent (without any clash of interests) and global counselling service is of the highest importance, allowing customers to focus on their work, leisure and family, leaving as a necessity only a periodical revision with the operator.

Phases of the process

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Throughout the whole of our relationship with our clients it is important to know their need for liquidity, their investment objectives and their knowledge and experience. On this basis we can be certain our recommendations, adapted to their aims and expectations, will be fully understood.
Most of our clients already hold investments in different types of assets, with diverse fiscal relationships. For this reason we analyze a particular client´s portfolio as a whole, to see if it conforms to his risk pattern, if it is correctly diversified, and if it is in harmony with our market expectations. Lastly, we examine each of those products individually to analyze their risks, their profitability expectations and related fiscal matters.
Distribution of assets is the strategic cornerstone to diversify risks and to make use of all the opportunities offered by the market. In order to plot this process we use our own analyses, plus the external analyses provided by the main international operators and financial institutions.
Not being related to any entity, we are in a position to choose freely the best products in each category. The market offers an enormous range of alternatives, and we are in a position to select products for their performance, prices and fiscal relationship that are best suited to each client.
All of the aforementioned items lead us to the elaboration of an investment proposal, which includes the recommendations to the client in accordance with his risk profile, his needs for liquidity, his knowledge and experience. It is the client himself who makes the final decision, whether to accept it, modify it, or reject it.
Throughout our relationship clients receive periodical or ad hoc reports on their portfolios, which include their financial investments by bank, currency, type of asset, etc. enabling them to check their performance with regard to the reference index.

However, it is our responsibility to ensure that our clients´ portfolios are in conformity with our expectations concerning the markets, in addition to changes in their needs. For this purpose we count on a professional counselling software that allows us to perform a continuous follow-up and to activate alarms when there is a surge in volatility, a drop in profitability or any important fluctuation in those products a specific client has invested in.

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Explanation of the Financial Planning Process

Financial Planning (vastly extended in Anglo-Saxon countries) is a process that allows a client to know his patrimonial situation, helps him define his objectives and priorities, to elaborate a plan to carry them through, and to establish a periodical revision of it. It enables him to know his saving capacity, his degree of indebtedness, his risk cover in the face of contingencies; to establish a retirement plan (savings plan), to determine a plan that will address fiscal optimization, to define an inheritance plan, to establish a plan for his children´s future education, etc.

Phases of the process

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The first step is to establish the pattern which will rule the relationship between the client and DPM Finance. For this purpose the services to be rendered must be identified, their retribution established and each party´s responsibility determined, as well as the duration of the contract and the range of the service.
Entering this phase a comprehensive report on the client´s patrimony –in quantity and quality– is requested.
These must be specific, measurable, attainable, sound, and have a deadline. It is the client who defines them and sets his priorities; our duty is merely to aid. In some cases the chosen objectives may entail larger savings for the client; to accept an inferior pension to the one expected, or having to postpone the purchase of a new house or an automobile. Our job is to explain that this is what must be expected, plus the sacrifices involved.
DPM Finance evaluates all the information and documents that have been delivered to analyze the client´s actual financial situation. This evaluation includes both his balance (assets vs debts), and his income statement (income vs expenses). For each objective the strengths, weaknesses, opportunities and threats to attain the objective are measured (SWOT method). Additionally, market expectations, inflation, tax rates and interest rates are taken into account, bearing in mind the client´s special needs (care of elderly persons, education plan, etc.).
In this phase a personalized and down-to-earth plan is presented, with its strengths, weaknesses, needs and risk tolerance, in agreement with the client´s objectives. Which for instance may show our concern for his degree of indebtedness before his assets, a reduced saving capacity, a high level of expenses, etc. Or, for example, the convenience to minimize taxes, to accumulate funds for his retirement, or to cover needs before a possible illness or demise. The gamut of solutions for each objective are analyzed, which may all be presented to the client, for him to decide which one he prefers.
DPM Finance cannot execute the plan; it counsels its client concerning the entities, forwarders or companies which offer the services or products to carry out the actions or plans that have been indicated.
The plan shall be revised periodically, when significant changes in market conditions or legislation occur. Additionally, the development of the plan shall be examined with respect to the proposed objectives, possible deviations and/or alterations in the client´s personal or family environments.
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