Financial advisors, attorneys, doctors, and fiscal consultants are essential professionals who help us navigate an ocean of information to make sound decisions. How do you choose a good one when the language they speak is a nebulous lingo few people fully understand? Riccardo Grabbio is a seasoned financial consultant known for his pragmatic approach and extensive experience as Chief Financial Officer. In this episode, Riccardo helps clarify some common financial lingo so you can build trustworthy and clear communication with your financial advisor or find the perfect one you understand. Listen to how to keep financial strategies simple on Spotify, Apple Podcasts, Google Podcasts, Amazon Music, Podbean, or your favorite podcast platform. Subscribe to Pity Party Over Sign up for Live Session Managerial & Leadership Development Contact Stephen Connect with Stephen #RiccardoGrabbio ##WealthBuilding #Investing #Savings #FinancialEducation #MoneyManagement #FinancialWellness #PityPartyOver #Podcast #Alygn #StephenMatini TRANSCRIPT Stephen Matini: So I represent your typical moron who doesn't know anything about finance. And let's say that I'm seeking for a financial advisor, where should I start? Riccardo Grabbio: When we take a look at finance actually is not something very small, very narrow, something. There are thousands of aspects that we need to take a look at. So first question to me is asking yourself, what do I need? Because when you talk at about finance, it might be have your own personal budget, for instance, because your expenses are not under control. Can be or maybe can be having a finance advisor because my company must improve, must improve for whatever reason because the balance between revenues are and cost are not enough or simply because I'm not managing well enough, my working capital for instance, or maybe because my cash flow is not coming, even though I'm making revenues, I, I do not understand why this is the second one. Or maybe it can be for instance because I have a lot of cash, but I'm not capable of leverage that cash well enough to make my company grow better or how it should, or maybe simply because I have a personal heritage that I want to have a battery yield. Riccardo Grabbio: And at the moment I don't have this is let me say very typical situation that Italian families has. For instance, just to give an idea because you need to know that the GDP of Italy is not satisfactory, is not a country that is growing a lot for several reasons. We are not efficient enough. Our industries are weak, must improve, we have tax issues and all those stuff. But you need to know that Italian families are rather rich and what they have, they have a lot of cash because of generation and so on. And they have a lot of properties. And the big issues that I have seen, for instance in Italy is that what the Americans say is asset rich and income board, to me a financial advisor, this is the first rule of financial advisor, try to change this status because when you are asset rich and income board means that you are not efficient or better, you can't manage your asset. And in this specific situation, for instance, the financial advisor can create tremendous value to, to a family for instance, try to think very rich family that has a good family office and exactly the same very rich family without the family office handling the money for them, the result would be completely different. Stephen Matini: Based on everything you said so far, it seems to me that you, I think you mentioned like probably several things, they're important, but three are really important. One is that you don't need to have a big assets in order to start to be more financially savvy. That's one. Then you mentioned several times the importance of cashflow and the other one you emphasized the importance of time because from a financial investment standpoint, time is crucial more than the actual percentage you get paid in the moment. Riccardo Grabbio: Yes, exactly. I can tell you talking about the time, which is the most important of one. There are several studies that I have read over the years from JP Morgan, but also from some other sources like banger and so on. And what they say is that in a period of at least 20 years in a bunch of 100% investors in the stock market, there was not one that lose one penny over or the 20 years. It means that if you invest, if you buy and hold for 20 years, you're not going to lose money. If instead you try to, what, what we technically say, time the market. So you buy and sell, you buy and sell, then things get tricky. I can tell you one thing, I dunno if you have ever heard about Peter Lynch, I think in seven years in which he managed the found Magellan, he doubled the s and p 500 each and every year. Riccardo Grabbio: So try to think a, a result what we are still talking now about his performance and the funny thing is that 90% of the investors that invest in his fund, they lose ...
