Dealing with money is a complex issue , often permeated by a great taboo. The most common feeling I see among my investment advisors is fear , almost panic when it comes to money . It is understandable to understand the fears , as anyone who has it knows how difficult it is to acquire some wealth in life. But, as we will see here, there are some actions that, if taken, will help you build a financial legacy that you can be proud of and leave to your children and grandchildren.

Before we go any further, let's take the advice of Charlie Munger , the legendary investor . Let's reverse the meaning of the question to answer:

What is the risk of not investing?

The risk of not investing is this: becoming increasingly dependent on your work, not having time available to enjoy life . It is the risk of retiring and depending on the INSS , which is increasingly in debt . It is also the risk of having to pay rent on your property at an age when you are no longer able to work. And it's the sadness in your heart for not being able to pay for your granddaughter's 15th birthday party. I believe you understand the size of the risk when choosing not to invest.

What is the risk of investing alone?

Now that I've managed to convince you that investing is safer than not investing . Let me talk about the second biggest risk in the investor journey: investing alone. Typically , shame and fear can prevent you from seeking advice from an investment advisor . Investing on your own is similar to taking medicine without the guidance of a doctor, or carrying out renovations on your home without the assistance of an architect. You can do it, but you shouldn't. The reason is simple: the costs may be lower, but the results will also be lower.

What types of Investment Advisory are there?

Let's explore the two main types of investment advice and the professionals involved in Brazil. There are basically two types of investment advice : those that receive commissions for selling financial products and those that have a fixed remuneration previously established when contracting the services.

Let's start with professionals called Investment Advisors or Independent Investment Agents . These are ANCORD certified experts who earn commissions from investment banks when selling financial products to investors. The advantage for the investor is that, apparently, the service provided does not generate visible costs. However, the disadvantage lies in the fact that these professionals are often approached by investment funds willing to offer more substantial commissions if their products are promoted, creating a potential conflict of interest between advisor and advisor . Believe me, when someone offers free investment advice , be suspicious because financial market professionals don't work for "peanuts".

The second type of investment advice, or investment consultancy , is provided by certified professionals, such as CNPI and CFA . These experts are prohibited from receiving commissions for recommending investment products , one of the fundamental restrictions established by the code of professional conduct. In this way, all of these professionals' income comes from agreements signed directly with their advised clients .

By being prevented from receiving commissions, these professionals provide impartial opinions that act as a filter ( Equity Researcher ) between the offers of ANCORD professionals representing investment banks and the investment decisions of the clients they advise. Generally, non-commissioned professionals ( CNPI and CFA ) are hired by investment funds, and professional investors to carry out the careful selection and search for investment opportunities, as they are accredited and able to sign investment assessments.

Which professional in the financial market earns the most?

It is known that Investment Advisors ( ANCORD certification) paid by commissions from investment banks generally earn higher salaries compared to professionals who work on fixed projects. Thus, they become the most numerous professionals in the financial market, with salaries exceeding R$300,000 per month.

How to get investment advice correctly?

Start your search for a trustworthy banking institution . In Brazil, we have the advantage of having several quality options to make investments . It's crucial that you feel comfortable with the investment bank you choose, as you will be trusting them with your life savings . Banks vary in terms of costs, security and exclusive services, so you need to choose the one that best meets your preferences. I recommend prioritizing safety and good service in your choice.

After choosing the investment bank , request a representative to be sent to a face-to-face meeting, usually an independent investment agent ( ANCORD ). This Investment Advisor, if well selected, will be up to date on the best investment opportunities.

Then, hire independent investment advice such as a CNPI professional, that is, a financial market analyst accredited by the CVM . This professional, for a fixed fee, will carry out an analysis to filter investments , carrying out valuations , technical analysis , fundamental analysis , credit risk checking, among other tests required by regulation . In my opinion, opting for investment advice from these professionals and comparing their visions and ideals is a promising path for investors who wish to become more seriously involved in the financial market .

In short, overcome your fears and shame in finance and realize that the risk of not investing is greater than the risk of investing . Investing alone will be inefficient and dangerous. Understand that there are two types of Investment Advisory in the financial market : investment sellers and investment analysts. Furthermore, when using the investment bank you trust, obtain simultaneous help from these professionals, ANCORD and CNPI , making the best of their capabilities in favor of an asset that will allow you to obtain the financial freedom you dream of.

If you need a CNPI analyst for investment advice , contact Wagner Geremia.

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