Financial planning and making the best investment decisions, to create a secure and comfortable future is a major responsibility. Evaluating the many options available, and looking far into the future requires detailed knowledge. It’s natural to want to maximize the returns on our assets, without creating the risk of unsustainable losses. That is why using an investment manager may be a wise option which will provide a valuable return on the investment you make in hiring them
How can an investment manager help grow my assets?
1) Audit your current situation
The first thing he or she will do is to make a thorough assessment of your current financial situation. This will include your current assets and liabilities, as well as your future needs (such as your children’s college funds, and your pension). An important aspect of this audit will be to explore your attitude to risk. Are you looking for rapid growth, but can afford to absorb some short term losses? Or are you looking for more modest growth, over a long period, and want to know that your investments are safe?
2) Create a strategy for growth
With a detailed understanding of your current position and your objectives, your investment manager will use his or her experience to develop a growth strategy to fit your needs, select the best products on the market, at the level of risk you are comfortable with,
3) Monitor the performance of your investments
Your investment manager will manage your portfolio, day-to-day, and evaluate new investment opportunities. You’ll be provided with regular updates, and of course, have the option to discuss and make any adjustments to your portfolio according to your changing requirements.
4) Advise on how to protect and grow your assets.
An investment management firm can provide help and advice on a whole range of financial planning issues.
If you’re thinking of investing in shares or funds, yourself, you can obtain a second opinion about their value.
If you have investments, pension funds, etc, scattered between different companies, you can consolidate them so they’re easier to access and track
Investment management firms tend to have specialist advisors with more complex areas such as retirement planning, tax planning, inheritance, etc
They can also advise on insurance, mortgages, and debt management
When there’s a major change in your circumstances, such as a marriage, a divorce, the arrival of children, or a significant change in your level of income, an investment manager can ensure that your financial plans and investments are adjusted to suit your new reality.
How much do investment managers charge?
That of course depends on the firm, the services you use, and the value of the assets you place under their management.
All good investment managers will be totally transparent about their fee structures. You should also be informed about any additional sources of compensation. For example, if they recommend certain funds are they paid to do so? If they introduce you to an expert in a related field, do they receive a commission? These are not necessarily an issue, but as with any professional service, you need to be able to make informed choices based on full disclosure.