What is your Selma investor profile and how does it work? πŸ’Ž

+ why it's very important? πŸ’Ž
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Your "balance sheet" is very important πŸ’ŽΒ 

Everything in Selma is based on you. Selma builds your investment planet on top of your investor profile. This way Selma makes sure that your investments always match your life. Β 

Your investor profile is a summary of your financial situation. It's like your personal balance sheet.

Investing your money is one of the most personal things there is. Still, it’s often pushed aside or given to someone to take care of – someone who might not know you.

Investing should be first and foremost about you and your financial life.

What your investments need to look like and what to invest in depends on your financial life, your feelings about taking risks and how things change over time. To figure out what your investments should look like, Selma helps you set up your unique investor profile, and build your investments on top of it.

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Your investor profile consists of 3 big parts

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1. What your financial life looks like today  

Selma takes a look at your current financial situation. The goal is to figure out how your money is currently spread among different investments. This helps us figure out how much risk you are already taking. A couple of things Selma takes into account:

  • Cash savings: Money you have available and not invested.
  • Real estate: Houses, apartments or cabins you own.
  • Other capital investments: Money you invested in stocks, bonds, pension schemes or other financial products.
  • Other wealth: A car, watches, art, or jewellery … you name it :) 
  • Liabilities: Debt, a mortgage or a loan that you need to pay back.

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2. An educated guess on your future financial life

What your future life looks like has a big impact on how your investments should look like.

We all start from a different spot, and our future paths will go in different directions too. Selma takes into account different life situations like studying, working, early retirement and irregular salary.

 

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Income type. You might for example:

  • get a monthly salary
  • have irregular income like a freelancer
  • think of retiring and want to live from your investments
  • have a relevant family situation – single, living with a spouse, children, divorced...

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Things that Selma already takes into account:

  • Your age

  • You life situation you are in

  • Your average monthly savings potential

  • Time until your retirement

  • Goals that you want to achieve with your investments,
    for example retiring early or taking a sabbatical in a couple of  years

 

3. How comfortable are you with taking risk?

Investing your money and putting it to work, always comes with risk.

It is important that you only take the risk you're comfortable with. This is why it is important to really understand how you would feel in situations where you lose money.

Selma helps you figure that out. Risk can be an abstract thing, and we all want to achieve the highest returns, without a possibility of losing money.

To figure out how comfortable you are in different situations, Selma simulates your risk, shows you crisis scenarios and learns from your feelings and actions.

This should ensure you don’t take any risk you are not fully aware of.

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Things change over time

Stuff happens. Your financial life changes over time and your life might go into new directions, your investments need to be adjusted as well.

To keep your investment matched with your financial life just chat with Selma from time to time.

There are certain changes in your life that should also change your investments. They can be big or small, good or bad – but most importantly they might impact your financial situation.

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Your income

  • More or less salary
  • Switching or quitting your job
  • Taking a sabbatical

  • Starting to study

  • Getting a large bonus or winning the lottery. πŸ€

Saving

  • Deciding to cut costs and thus being able to save more
  • ... or the opposite

Buying or selling big things

  • Paying back a loan
  • Buying or selling an apartment, house, estate, a piece of land, winery, soccer club... ?

New life situation

  • Getting settled, married or starting a family
  • Retiring (later or earlier)
  • Starting your own company

You want to take more or fewer risks

  • Occasionally, Selma checks how comfortable you are with taking risks. We will not make any hasty moves. Instead, we will add or reduce your planet's risky investments in a smart way, over time.

In each of these cases, you ping Selma in chat, talk to the Selma bot or drop us an email. We will automatically check how this impacts your investments and if they require some adjustments.