Wealth Side Stories #1: Diversification
Simon has just been promoted and he wants to take advantage of his extra income to diversify his current portfolio. His private banker suggests different options...
Simon has just been promoted to Head of his Department. We all celebrated together yesterday. He was thinking of taking advantage of the extra income to bolster up his current share portfolio. But I suggested he discuss this with our private banker. And we took the opportunity to do a complete financial health check of all our assets with him.
Having told him about our personal plans, our banker asked us to think about our risk profile and performance expectations. He then suggested several options.Why not focus on investing in property like an office building that would allow us to generate a regular income when we retire?Our portfolio is already heavily invested in Europe. We could also expand into equity funds from emerging or American markets identified by the private bank.But, do we need short-term liquidity? We have actually decided to keep some of this money to pay taxes and finance our daughter Emma’s education.
Thanks to his advice, we have ring fenced our portfolio by diversifying it, because our different asset classes will react differently to market fluctuations. After nearly two hours discussing with our private banker, we have established a real wealth strategy with the relevant investments!
In this new #WealthSideStories series, meet Julia, Simon, Emma and Mimma in different situations impacting their heritage. Discover the solutions that BNP Paribas Wealth Management offers them in response to their problems, whether in real estate or private equity investments, expatriation or diversification.
At BNP Paribas Wealth Management, our alternative and private investment teams will help you to diversify your portfolio, e.g. through real estate, private equity or alternative investments. Our teams develop and select a suite of unique solutions to meet your specific needs and expectations and at the same time provide you with on-going advice and risk monitoring.