Expat financial advisor in Russia

Expat financial advisor in Russia – that will be the topic of today’s article.

I will compare some of the options available locally, alongside more portable, online, and international options like what we offer.

Nothing written here should be considered as financial or any other kind of advice.

For any questions, or if you are looking to invest as an expat, you can contact me using this form, or via the WhatsApp function below.

It makes sense to have a portable option as an expat, as opposed to a localized one, and that is something we specialize in. 

Introduction 

Russia is a great power known for its national flavor. Many foreigners who come from far and near abroad do not get tired of wondering at the way of life of Russians, their traditions, and mentality. What are the pros and cons of living in Russia?

The Russian Federation is a country that covers a vast territory and is considered the most populous country in Europe. The population is dominated by Russians, but Tatars, Ukrainians, Kazakhs, and Chechens also live in the country. Of course, the level and way of life in Moscow and St. Petersburg and, for example, in Saratov is much different.

Expat financial advisor in Russia

The life of every Russian is weekdays and weekends. The former are busy with household chores – visiting schools, kindergartens, universities, being busy at work, traveling by transport, shopping for groceries, and occasional evening walks. Weekends are attempts to arrange entertaining and interesting leisure, arrange visits to exhibitions, parks, cultural attractions, clubs, and restaurants.

The pros of living in Russia

  • Job. The country was built on the collapse of the Soviet Union and for many years has been trying, using the heritage of the empire, to build its economy, political system, to achieve development in technology, industry, and culture. Therefore, everyone will find something to do, there are no problems with work in big cities. Of course, things are a little worse in the provinces, because those who strive for prosperity and well-being try to move to big cities. There is always work in the markets, in the courier service, in the restaurant, in the office. Therefore, every year they go to Russia to earn money from almost all the CIS countries – from Ukraine, Armenia, Moldova and Belarus.
  • Development. Many foreigners say that life in Russia is interesting because you constantly need to try yourself in different fields, while, for example, in the United States, specialists in one business are highly valued. So, there are lawyers specializing in family law, criminal, administrative and so on. In Russia, being a lawyer means being a broad-based specialist, you can try yourself in all branches of law. If you are an ordinary manager today, then it is possible that tomorrow you will move to work in another industry and study it. There is no single scenario for success, you need to constantly try yourself in something and develop.
  • Weak business competition. In order to open a business in Russia, you need a lot of money, but still, due to the fact that there is no particular competition, you can build a good business.
  • Russia is a pedestrian country. In every Russian city there is a place to walk – parks, squares, forests … To get from point A to point B, in any case, you have to walk a little, and this is good for your health. In addition, Russia is a country with a lot of attractions. For example, in the USA they walk very little and spend most of their time in transport.
  • Access to the Internet. In every cafe and diner, in the park and square, even in transport, there is free Internet. This is not the case in many western and European cities.
  • Free education and medicine. Whatever it was, but in Russia there are free kindergartens, in which parents only pay for food, and free schools, you can use free libraries. The hospital is obliged to provide medical care free of charge, although it is not always possible to get timely and high-quality treatment without money.
  • Tasty food. In Russia, products are very tasty, as they are mainly grown on farms. Unlike the same civilized countries that are dotted with supermarkets, Russians can go to the market and buy homemade milk, cottage cheese, cheese, and all this for little money.
Expat financial advisor in Russia

There is something to scold the country for, but in many respects, this is due to bureaucratic arbitrariness and lawlessness. What are the disadvantages of living in Russia?

  • Poverty. The contrast remains between the very rich, who can afford to buy housing in Red Square for millions of dollars, and the poor, whose income is barely enough to buy food. There is practically no middle class. Incomes in big cities are large, but in the provinces people have to literally survive, so most often everyone goes to work in the capital.
  • Crime. A fairly high crime rate remains in Russian cities. Visitors are especially unlucky – they can even snatch a bag out of their hands at the station. Due to corruption in law enforcement agencies, criminal cases are often closed, which only worsens the security situation in Russian cities.
  • Corruption and the shadow economy. The way of life of many citizens of Russia is such that they deeply subconsciously have the idea that everything can be solved by acquaintance or for money. This helps the officials to increase their prosperity and impoverish the people. A high percentage of corruption prevents the country from developing economically.
  • Poor environmental situation. Due to the presence of a large number of industrial facilities, there are cities in Russia in which the air is very polluted. These are Norilsk, Moscow, St. Petersburg, Cherepovets and Asbestos. In addition, the situation is aggravated by illegal logging and disposal of radioactive waste.

Why will you feel the need of a financial advisor in Russia?

The problem for many people is that they have no control over their cash flows. As a result, they live chaotically, not understanding where they are going financially.

We are all involuntarily involved in a constant financial movement. After all, we perform various monetary transactions every day. And it depends only on ourselves how conscious this movement will be on the scale of our entire life.

To control the future, we need:

  • Manage your cash flows;
  • Turn the future into a set of clear, measurable financial goals;
  • Make a plan to achieve these goals;
  • Carry out your plan.

This is a common situation with which a financial consultant works. Along with this, special cases are also possible.

A person already clearly understands what tasks he is striving for. He only needs a specialist who will help you choose the right strategy for achieving the goal. And he will offer the best tools for solving important tasks.

In both of these cases, a personal financial advisor will be helpful.

Who is a financial advisor?

Expat financial advisor in Russia

This is a specialist who provides financial policy advice at various levels. He can work both as an individual and in the state of a legal entity. This does not change its functions.

He advises clients on how to save or increase money, assesses their financial condition, develops investment policy, a scheme for working with banking institutions, and makes management decisions.

This category includes the following specialties:

  • brokers;
  • investment advisors;
  • accountants;
  • financial lawyers;
  • insurance agents;
  • financial analysts.

A consultant can be well versed in a particular area of ​​finance, but can also be a broad-based specialist.

What a financial advisor should know?

First, he must have all the necessary skills of the profession. Secondly, it is excellent to know the provisions and laws of legislation in the field of finance and economics. Further, he must understand the market economy, trends in monetary investments.

He must also know how to evaluate financial assets, their instruments. Understand the procedures for purchasing and selling securities in the stock markets. In addition, he should be familiar with modern systems of lending and investment, control and taxation.

In other words, a financial advisor is an advisor with excellent knowledge of any financial, legal and accounting area.

Requirements for a financial advisor

Typically, financial advisors have the following requirements:

  • higher specialized education;
  • work experience in the field of finance for at least 1 year;
  • knowledge of financial management and accounting;
  • knowledge of the stock market and the securities market;
  • experience in analyzing and assessing financial risks;
  • PC knowledge.

You may also need:

  • proficiency in English;
  • sales skills.

Types of financial advisors

There are several categories of financial advisors:

  • Investment advisors, salespeople, finance company staff. They will help in cases where the client has medium-term savings and investment projects. They have certain plans that they are ready to share. This category includes bank employees, insurance agents, realtors, consultants in pension and investment funds.
  • Motivational financial advisors. This is another category. Such specialists help to draw attention to a specific problem, recognize it, and then make a decision to close it in the chosen ways. In other words, the client receives instructions for action, taking into account his financial characteristics. Such specialists are contacted for short-term cooperation, when the client already has a certain action plan, but he cannot decide on its implementation.
  • Independent financial advisors. Their functions include finding out the client’s capabilities, selecting a number of solutions, as well as highlighting the most suitable ones for implementation within a certain time frame. As a rule, they develop plans for the long term. For example, 10 years. During this time, the client’s well-being should increase.

But in this article we will mainly be focused on the two mostly popular types of financial advisors: local and online.

Local financial advisors

There are many misconceptions about the role of a financial advisor and the differences between financial market professionals. The reality is that having an expert to help you navigate the financial market and choosing a catering investment based on your individual needs can be extremely beneficial in the long run. Especially local fiduciary consultants who are legally and ethically obligated to always put you first.

Many people prefer a local financial advisor because of the convenience, interaction, and more. Here are the main reasons and benefits of choosing a local consultant:

One-on-one communication

Yes, some people only trust in person, especially when it comes to money. If you are uncomfortable doing business online, a local financial advisor may be the right fit for you.

Many people prefer personal, human contact – especially the older generation who grew up on bricks and mortars rather than doing business online, which is why a local financial advisor is the type of advisor of choice.

In addition to managing your investment portfolio, the benefits of a traditional local financial advisor include the ability to discuss your questions and concerns as often as you want, anywhere.

Face-to-face meetings can help you clarify your costs and goals by scheduling an assessment appointment and scheduling regular reviews. All consultants are individual, which is why it is so important to take a close look and ask questions to find someone who suits your individual needs.

Local experience

Russia is a foreign country and for many expats the laws may be different, investment options, savings accounts and more may require different skills.

The key decision is a local financial advisor. They are usually educated and focused on the laws and regulations they follow in the country. So they are a great resource if you want to invest locally to drive growth in your area, city, or state.

Keep in mind that local investment can bring you two rates of return – one directly for your portfolio and the other through your community. There is growing evidence that, compared to their non-local counterparts, local businesses have two to four times the impact on local economic development for every dollar spent on them.

So, if you have an investment portfolio that includes local businesses, your dollars will continue to circulate and improve the well-being of your entire community by creating new jobs, increasing income, and ultimately supporting funding for schools, parks, police. and fire services; and safe and prosperous areas.

An expert, local financial advisor can help you with due diligence to make sure your local investment makes sense.

Online financial advisors

Online financial advisors have been steadily gaining popularity over the years and for a variety of reasons.

One of the first reasons people started working with virtual financial advisors was to buy time in the olden days, since they didn’t have to get in their car or sit in traffic to meet with their financial advisor when a phone call or Zoom meetings are simple. also.

For people who travel frequently or plan to relocate to another part of the country (or live abroad), working with an online financial advisor will also ensure that your relationship doesn’t end wherever you are.

Perhaps the most significant advancement accelerating the trend towards virtual financial consulting is the ability of financial advisors to specialize in serving a niche that would be impractical if limited to working with clients in their hometown.

This way, you have the opportunity to hire a financial advisor who truly understands your individual needs, based on their education, experience and commitment to helping people like you.

Location is the first benefit

Investors looking to hire a consultant in cities with high cost of living often struggle to find a consultant who is affordable or accepts them as a client if they do not meet the requirements based on their minimum assets.

Having a virtual relationship allows investors in, say, San Francisco or New York, to hire a consultant in Delaware or Mississippi who is likely to be more accessible and have a lower declared minimum asset, even if they have the same experience and level. service offers.

Everything should be in your time

Those professionals who work hard get good salaries, but they often cannot find a consultant who is available when they are – after hours. An online consultant is usually not limited to “office” hours and can contact you when you need it!

In times of intense financial stress, simply revising the annual plan is often not enough. As an investor, you will most likely prefer to have your financial planners or advisors available throughout the year.

The client/consultant relationship is not a set-and-forget relationship, but rather a continuous dialogue. This includes ongoing text or email conversations, which are much more convenient than scheduled face-to-face meetings once a year.

Increase your chances of finding the right advisor

Often, due to location restrictions, people choose financial advisors that are not suitable for them. Rather than focusing on finding a reliable counselor who cares about your interests and is experienced for your specific needs, physical limitations may induce you to hire a low-quality counselor who happens to live nearby. The ability to find a working consultant practically expands the pool of potential candidates, so you can find the most suitable one for you!

Financial advisors have different backgrounds and the value they add can vary greatly. Even if a consultant is paid, this does not mean that they have the same level of expertise, offer the same services, or serve the same types of clients. Zoe helps you find the top 5% independent paid consultants in the country, so you can find a highly qualified consultant wherever you are.

Once you can trust that your potential online financial advisor has the right experience, you will need to assess whether his or her experience suits your needs and your investment. The value that consumers expect from a consultant has changed dramatically over the past few decades.

Advisors used to be valuable in their ability to try to beat the market by choosing stocks, bonds, or mutual funds on your behalf. Technology and product innovation have commodified many of these tasks through more passive and cost-effective investment vehicles such as index funds or ETFs. An online financial advisor practice can provide an interactive service that has already been redesigned to work with its clients virtually.

When do you need a financial advisor?

By “financial advisor” we mean someone you trust and with whom you can discuss your financial situation, plans and ways of handling money. By no means do I mean banking or brokerage employees – at least not most of them.

Below is a fairly extensive list of situations when, it is time to think about this question.

1. When you have made a major financial mistake. Example: If you decide to sell all stocks in the midst of the corona crisis and withdraw money from the stock market, this is a sign that you cannot trust yourself in matters of money management and investments. As a rule, past behavior will predict well your future behavior, and if you were scared at the beginning of 2020, then the next time, especially with larger amounts in management, you are likely to also succumb to emotions and make an even worse mistake.

2. You are tired of financial decisions, investments, etc. After 10 years of active work and investment, you have accumulated an amount at which you are satisfied with the yield of the rent – dividends from value companies, real estate funds, etc. Tired of stock picking, news tracking is a good reason to think about delegating at least some of your concerns to another professional.

3. Not enough time. If you have a job that is not related to the market, and in addition to this, you have a lot of family concerns, it is unlikely that the 15-20 minutes you spend a day after a hard day will help you effectively manage your family money. Under such conditions, thinking about re-balancing the portfolio and choosing one or another ETF or even more so a stock is the last thing you need to do.

4. When the “stakes” have risen so much that the cost of a mistake can throw you back years. It’s one thing when you are young, full of energy, there is only $ 5,000 in your brokerage account, and your entire work horizon is still ahead – in this case, even a complete loss of capital is unlikely to seriously affect how you will live after retirement. It is quite another thing, when you are already over 40, investments amount to several annual salaries – in this case, you already have less time and energy before retirement to correct possible mistakes (and they will definitely be).

5. You have a specific goal – to buy a second home in 10 years and retire in 20. It is clear that a financial advisor does not have a crystal ball. But using his knowledge and experience, he will at least suggest the risks that can be realized over such a long period, and will assess whether you have at least some chances to achieve what you want.

Pained by financial indecision? Want to invest with Adam?

Financial Planner - Adam Fayed

Adam is an internationally recognised author on financial matters, with over 305.9 million answers views on Quora.com and a widely sold book on Amazon

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