What does the North American Financial Market have to teach us?
The information contained in this text is for comparative and informative purposes only. Our objective is not to criticize the Brazilian community, nor the Institutions conducting business in such Countries, but to show how an economy (United States of America) with 23 trillion dollars GDP works as a whole.
Plan Your Life, Always!
Developing a medium and long-term plan to protect your heritage and future generations is a habit for Americans. When a child is born, the father thinks about the resources that will have to be saved for college and, upon entering the job market, young people are already starting to plan their retirement.
Americans are concerned with working to create solid financial structures. To get an idea of what we're talking about, just look at stories like the Rockefeller family, who created a perpetual financial structure that started in 1870 and protected all future generations with the asset perpetuity system, using structures like the Dynasty Trust. As long as the Rockefeller family exists, the heirs will benefit, as with the other dynasties that are at the top of the American social pyramid, such as the Waltons, the Kochs, the Mars and the Mellons.
In concepts and structures like these, what was built more than 150 years ago continues and will continue to be protected, never being dilapidated by conflicts between heirs, divorce, or other legal obstacles.
Establish Financial Goals
Only those who knows Brazil's economic history understands why Brazilians have such difficulty in planning for the future. In the 1980's, the Country's average inflation rate reached 330% annually and, between 1990 and 1994, the annual average inflation was 764%.
With such alarming rates, it was difficult for the population to think about financial stability. Who doesn't remember the economic plans launched to try to contain inflation? From 1986 to 1994, there were seven Economic plans implemented in Brazil: 1) Cruzado and 2) Cruzado 2 in 1986, 3) Bresser in 1987, 4) Plano Verão in 1989, 5) Collor 1 in 1990, 6) Collor 2 in 1991 and, finally, 7) Plano Real in 1994.
Changing the way Brazilians see the Economy and their money is one of the great missions of my career. It is necessary to break down the barriers inherent to the culture of our people and think a little more like the "gringos"… They've planned yesterday, they plan today and they will keep planning to day they die. Their family deserves it!
Today, we live in a global economy, with borders that can be crossed, so setting goals, establishing viable financial goals and betting on the right tools are fundamental steps for those who want to go further, with security, in a structured and systematic way, thus protecting what has already been built.
Monitor the Health of Finance
Personal and business finances must be continuously monitored so that the chance of success is maximized. Interview financial advisors, do your analysis and, finally, choose a professional to follow the evolution of your wealth, analyzing the flows of market movement and the impact of taxes on your money in the long term.
Diversify! This is a global concept: having all your eggs in one basket may not be a smart option. Again, in a non-pejorative way, culturally our community works with very large immobilized structures. It is common to see a family with 1, 10 or 100 million in assets, having 90 to 95% of this assets immobilized in real estate and business structures, thus generating a major liquidity problem in an emergency, let alone the problems for future generations to solve.
It is essential to analyze needs in a constant, structured and disciplined way, adjusting goals periodically so that finances remain healthy.