Rudy Wong Investment Advisor

1.0        INTRODUCTION

        The economic decline from 2008 created a global financial crisis and new low margin records affected the Dow Jones and S&P stock exchanges. For example, as incredible as it may look, financial advisors were impacted terrible and their professional advices were jeopardized by uncertainty from the investors, which led advisors to analyze closely this unpredicted situation.

Financial investment companies such as O’Hagan Securities were not immune to the financial crisis consequences and were swamped with the phone calls from investors in need to know what will happen to their investments, what action to take promptly and how to trust the market again. Regardless of the age, amount invested or range in income of the investors, they all had a common denominator that was easy to understand but difficult to alleviate, the overwhelming fear. Rudy Wong, a financial investor working at O’Hagan Securities confronted this difficult situation in which he could establish certain plans and strategies to alleviate the emotions of the investors but in the other hand, he was confronting a reality he had no control over it.

2.0        OBJECTIVE

        The objective of this case study is to identify the life cycle stages of the Rudy Wong’s client and how it will affected in their financing. Before preparing a financial plan it is important to be aware of the current life cycle phase that clients are in because the phase will determine the financial perspective that they need to have towards asset, liabilities, investment and insurance. The financial community have identifies the three distinct financial phases that the clients will go through in their life. These phases are typically based on age, marital status, dependents, income level and net worth. Each of these phases has its own set of ratios for income and expenses as well as how client’s investment portfolio should look.

        The second objective is to evaluate the client’s details before we decide the best way for Rudy Wong’s clients. This is important because it will determine the suitable strategies for each clients and what types of investment policy or strategies that portfolio manager have to use. Investment policy is a drafted between a portfolio manager and a client that outlines general rules for the manager. This statement was provide the general goals and objective of a client and describes the strategies that the manager should employ to meet these objective.

        The third objective is to give an opinion or advice for each client. We should decide the best to assure each of clients by communicating logical arguments based on our portfolio management expertise and analysis, by managing emotions and attempting to re-establish our clients’ faith in the market or by both methods. Besides that, we also need to re-examine the investment strategy that we have developed for each client and recommended whether they should stay with current strategies or make a changes.