Investment banking is a financial activity where a financial adviser assists businesses and individuals by acting as their client’s agent in the handling of their portfolio. The investment banker will first work with the client to find out what their risk tolerance is, what the horizon is for their investments, what their present financial situation is, and from that develop an individualized financial plan that will get them to where they want to be.
A financial adviser will, in following the clients financial plan, make allocation decisions within the portfolio. They will make decision on what funds to invest in and how much should be in the United States market, international developed markets, and how much should be allocated to developing markets. They will also decided what types of bonds should be invested in based on current market conditions and what they see happening in the future. Generally speaking as a client gets older their overall portfolio will become more conservative over time.
An example of an investment banker is Martin Lustgarten. Mr. Lustgarten is the Chief Executive Officer of his company, Lustgarten, Martin and is based in Ponte Vedra Beach, Florida. Mr. Lustgarten has used his dual citizenship as a citizen of Venezuela and Austria in order to assist his clients. By spreading wealth among different countries his investments benefit from local growth while mitigating the risk of being too concentrated in any one area or country. Martin closely follows each market so that when he sees market conditions are likely to deteriorate in a country he can reallocate the money invested there into another country.
Martin finds great satisfaction in assisting his clients to make their retirement dreams. As the economy continues to grow after the last major downturn he sees many opportunities present themselves in the markets. He believes that by keeping a diverse global portfolio and then carefully tracking markets he can help his clients meet the goals they have developed in their personalized financial plans.