FOR many investors, especially those who are new to the equities market, trading may appear to be a daunting task at first, but with the right guidance investors can be empowered to make sound financial decisions.

This is where your investment/financial advisor comes in handy. If you’ve ventured into buying and selling stocks, chances are that an investment advisor could be more accessible than you think. This is because many brokerage firms in Jamaica offer individual and general investment advice to their clients free of cost in some cases.

Personal portfolio manager at JMMB Melissa Mckenzie says investment advisors may also be referred to as financial and wealth advisors, noting that the focus of the role is to provide sound financial advice to those who need it.

With that said, Mckenzie stressed that not everyone with financial knowledge is certified to speak publicly or to give advice on dealings with securities or personal finance.

“All financial advisors are licensed by the Financial Services Commission (FSC), and you go through a process to be licensed. You’re licensed to give financial advice on behalf of that institution that you work for,” Mckenzie said.

She explained, “The financial sector has come a long way, whereby it gives investors or clients a lot of autonomy to purchase stocks online. You can research information for yourself and there’s such a wealth of information out there that in some cases it’s easy for them to get overwhelmed.”

With that said, she noted that investors may need an advisor to interpret company news sometimes, noting that, “We have our hands on the pulse a little bit more.”

While talking to a financial advisor is entirely voluntary, Mckenzie stressed it is highly recommended.

Investment advisors have traditionally focused on helping investors to make informed decisions about which stocks to buy and sell, but Mckenzie says the role has expanded.

“The key role of the investment advisor is advisory service and financial planning so it’s not just a branch or a bank [at JMMB], we call it a financial lifegoal centre because typically it’s a financial planning conversation that we have as opposed to just selling products,” Mckenzie stated.

The JMMB manager noted that more investors are leaning on their advisors for financial guidance, but she highlighted that more can be done to improve the overall financial well-being of Jamaicans.

“In recent times I’ve seen persons lean on financial advisors more. I think that’s because our stock market has an enormous amount of buzz around it and you see more and more persons trading. Years ago, if you thought about stocks you’d say that is for the upper one per cent or it’s out of my reach. Now, you find that the average Jamaican has a stock portfolio and is trading for themselves, and you do find that they are seeking out information and advice a lot more than in previous times,” she said.

While highlighting the gaps, she outlined that “there still is room for a little bit more development there, not necessarily what to buy or sell, but more so the financial planning conversation. I think our investors could do a little better in terms of seeking out knowledge to plan their overall finances, not just asking what stocks to buy or sell. From our perspective we can show you how to structure or shift things around a little more in your portfolio to get you towards your financial goal sooner than anticipated.”

She said it is necessary to take a more individual approach as the stock market grows, noting that there’s more diversity among investors these days in terms of where they are financially and what their goals are.

“Everybody is going to be at a different stage of the lifecycle. So some persons focus may be on building up their emergency fund or paying down debt, while others may have all of that down pat and have their property purchased. But they have amassed a certain amount of wealth and they now want to maximise the earnings. Some persons may be looking to buy a car so everybody is in a different space,” she noted, while explaining that the investment advisor has to be flexible in that regard.