Assets & Goals
We produce your personal financial planning based on your financial goals and your current asset allocation. This information allows us to evaluate to what extent your financial goals can be financed (reached) with your existing assets.
Whether your financial goals are achievable or not is dependent on your assets. It is therefore important that you enter all your assets and how they are currently structured in our system (including real estate).
To be able to provide you with the optimal advice, we have to first understand what you would like to achieve with your assets. That is why setting your financial goals is a priority to us. We consider the non-achievement of your financial goals as your greatest risk. We offer you a selection of around 40 different financial goals choices (i.e., an extra payment on top of you expected pension at retirement age, capital preservation, heritage, etc.). All you have to do is setting up your goals and we will show you to what extent you would be able to achieve them and the amount of cash you may miss in a very bad capital market scenario. If you are willing to change and improve your asset allocation, you will see how you can do.
We define the asset allocation that works best to achieve your financial goals. To define the optimal asset allocation for you, we, simply put, simulate your world, i.e., your goals and your possible investments in 1,000 possible scenarios. The development of assets and financial goals depends on a number of factors such as inflation or interest rates or development of capital markets over time.
We model how assets and financial goals develop in every point in time of your life. By linking goals and investments to the same macroeconomic variables, we are able to ensure that the goals are consistent with the development of assets at all times. We model all the assets that you input into the Prosperio system, including, for example, your real estate, as all your assets matter to understand if financial goals can be achieved. Once we have modelled the probability of reaching your financial goals based on your current asset allocation, we will structure a completely new and individualized asset allocation for you. We do not work, like the vast majority of our competitors, with pre-defined investment portfolios. We use an optimization algorithm in which up to 25,000 different asset allocation are generated and evaluated in different capital market scenarios. That way we ensure that the best asset allocation in all possible scenarios is searched for and found for you!
Fund and ETFs selection using the values:
We are the only provider in Germany that enables the customer to incorporate his or her own personal values and criteria when receiving investment advice. With Prosperio, you define the WHAT do you want to achieve with your assets but also the HOW you would like to achieve it. With Prosperio you can specify your values:
- Corporate governance and transparency
- Exclusions of controversial weapons
and your preferred investment style from a list of investment criteria:
- To “sleep well” trusting your investment / maximize the long-term returns in the respective asset class
- Minimize product costs and invest passively / benefit from the capabilities of fund managers that actively manage the fund
- Real people behind investment decisions / computer models behind investment decisions
- Fund managers looking for long-term investment returns / fund managers who also take advantage from short-term opportunities
- Young and dynamic fund manager / older and experienced fund manager
- Investment teams with higher than average female representation
- Independent fund management boutique firm / large fund management companies
- Stronger focus on small and mid-caps
- Higher dividend yields
- Avoid investments in emerging markets
- Avoid derivative investments as much as possible in the respective asset class
- Avoid currency fluctuations
- Be skeptical of banks
Of course we also provide you with our investment advice if you do not want to incorporate your values and/or your personal investment criteria.
Once we have found the optimal asset allocation, we select the most suitable investment products for you per each of the recommended asset class from at least 400 funds. The selection is based on the quality of the funds and on your defined values and investment criteria (please refer to section a. Assets, financial goals, values and investment criteria for further information). We have developed an algorithm together with a leading provider of fund research to help you exactly find the investment products that best match your requirements. We will always show you funds, that have highest quality and are best suited to your defined set of values and investment criteria. We transparently show you how each investment product meets your preferences. You then freely decide which of the investment products recommended to you is the right choice for you.