Francisco Faraco discusses his career as an investment advisor

Francisco Faraco discusses his career as an investment advisor
Francisco Faraco

Francisco Faraco is an investment advisor who has many years of experience in the financial world. Currently, he is the CEO and Founder of Faraco Partners. Before this, he worked at a variety of different financial services companies in the US, including J.P Morgan and Merrill Lynch. Faraco provides a wide range of consulting services, dealing specifically with investment management, trading, portfolio management and financial management. He also offers public speaking services for financial workshops and conferences focusing on financial management.

Faraco was able to answer a few of our questions about the nature of his work and the world of finance in the US.

Faraco, when did you decide that you wanted to be an investment advisor and how did you achieve your goals?

In my high school years, my favourite subjects were Mathematics and Economics. A former teacher of mine encouraged me to pursue a career in wealth management and I am so glad that I took their advice. I started researching about financial careers and listened to speeches from some of the best advisors in the business. I was hooked.

I knew I had to work very hard at school in order to achieve my dream. I attended the University of Chicago, where I achieved an MS in Financial Mathematics and an MA in Economics. My primary focus was Economic Development Policies and Financial Economics, where I graduated summa cum laude. I also studied at the Universidad Metropolitana in Venezuela, where I attained a BBA in Banking and Finance.

What do you think are the most challenging aspects of your line of work?

The world of finance can be quite intense at times. The days can be incredibly long, so be prepared for some late nights and minimal sleep if you’re thinking of getting into this profession. Another massive challenge is overcoming your mistakes and adversity. Financial markets are volatile and unpredictable a lot of the time. So, no matter how good an advisor or consultant you are, you will make mistakes. Embracing and learning from those mistakes is crucial challenge for a lot of young investment consultants.

How important is experience if one is looking to develop a lucrative career in financial consulting?

Experience is very important. When you’re applying for those big, lucrative graduate positions with some of the best companies in the world, you want to have experience on your resume. Experience from anywhere is vital. I began my career as a Prop Trader for Eurobanco in Venezuela, overseeing repo trading, US dollar funding and other core activities.

With this experience in the field, I was then offered a consultancy position with J.P Morgan. I worked in portfolio management, investment advice and other services. I also worked as a Portfolio Manager for Merrill Lynch in the U.S.

In your opinion, what are the most rewarding aspects of your job?

The most rewarding aspect of being in an investment advisor is knowing you are helping people achieve their financial dreams. In today’s economic climate, it can be very difficult for households to accumulate wealth and enough savings to achieve their dreams. It could be a flashy new car, a brand-new home or to invest in a rental property. Whatever their financial goal may be, advising people on how to get the most out of their money and investments is something that gives me satisfaction and happiness.

What are some of the most common investment concerns/questions you receive from clients?

One of the big concerns from clients is about the state of their investment portfolio and their strategy. Since the Global Financial Crisis in 2007/08, a lot of people simply don’t trust the system. And it’s hard to blame them. Part of my job is encouraging my clients to consider a wide variety of investment options. High risk, high reward? Low risk, low reward? Many investors simply don’t know where to start and that’s why I’m here to help.

I try to help my clients develop and build a comprehensive portfolio that has a mixture of high risk and low risk investments/stocks. Diversification is crucial.  If you don’t know where to start, then I always tell my clients to go back to square one; what do you want to achieve? Once you have a set goal in mind, working out your portfolio is a lot less complicated. Many people also want to know how investments can affect their taxes, which is another area I can assist with.

What would be your advice to someone trying to launch a successful career in finance?

My advice would be simple – you must enjoy what you do. If the thought of sitting in an office looking at stock numbers, talking to clients and strategising doesn’t appeal to you, then forget about this business. However, if you genuinely think it could be a career for you, do your research. Learn about the craft, consider the necessary university qualifications and get involved in a practical way as early as you can.

You need to be patient and show perseverance. The results will not come overnight. You need experience, time and a lot of practice to begin to feel comfortable in your abilities. Success comes to those who are patient and willing to put in the time and effort to hone their skills.

Franciso Faraco is a highly-skilled investment and financial adviser with a lot of experience. He is now the founder and CEO of Faraco Partners.

Thank you Franciso for sharing your thoughts!
You can follow up with Franciso Faraco at https://franciscofaraco.com