Should You Find Asset Management Advisors For Your Investments?

Some people who feel that their investments can do better if they have someone else handle it for them often look towards companies that have asset management advisors to take care of their investments for them. The people who do these often find that once they are no longer trying to figure out which investments to make and which ones should be avoided due to the passing of such a responsibility to a company and to people who do these for a living actually find themselves with more time to do more of the things that they want to do and to not worry about the money that they entrust to these companies.

Should you go down the same path yourself and find asset management advisors and professional financial managers to handle your investing and investments for you? The answer to this question usually depends on whether you can find an asset management company near you that you can trust and that can help you achieve the goals you have set yourself to attaining with the money you have saved for your investing purposes. To find the right company and the right advisor for such an endeavor, you may need to go through a number of company portfolios to see what they have to offer and you may need to talk with a few of the advisors these companies have about their possible plans for your assets. You will know whether you should get an asset management company to help you with your investments when you find the one that you feel suits you and your plans well.

Wealth Management – Interviewing an Advisor

If you’ve made the decision to work with an advisor, you’re going to want to ask them some questions prior to turning over your finances to them. Here’s a list of some of the basics-determine what is relevant for your situation, and work with an advisor whose answers and whose methodology seem to fit with your own thinking. The answers listed here are just for some guidance.

Q: Are you registered with a state agency and the SEC?

A: Should be yes…working with an advisor who is properly licensed means that someone is ensuring that the advisor meets continuing education requirements and follows a mandated list of rules.

Q: What licenses, certificates and registrations do you have?

A: Depending upon the answer, you can do a quick internet search to determine the relevancy-for instance, the CFP is a fairly well-recognized credential, “Certified Financial Planner”. There are insurance credentials, financial planning credentials, and more. To sell insurance in a particular state the provider must be licensed in that state. Ask about educational credentials, continuing education and how he/she keeps up to date with peers and with the industry. Figure out how tech-savvy the advisor is, if that is important to you (if you do everything online, and the advisor is pen-and-paper, that’s not a good match-or vice versa).

Q: What services do you provide?

A: There’s no universal right answer here, but make sure the wealth management advisor you’re speaking to does work in the area you’re looking for-ie, education planning or wealth transfer.

Q: What kind of clients do you serve and how many do you have?

A: The answer here should let you see if you fit within the advisor’s target-if you are still in the mode of growing your portfolio, and only have $25,000 to invest-but the advisor tells you he/she works with million dollar clients-you may not be a priority for him. If the advisor has many clients, you many not get the time you need-which may be fine, if you are looking for a limited amount of advice on a single area of focus.

Q: How long have you been in the business?

A: This is a good question to draw out some personal information about your advisor, to see if he/she is the type of person you’d like to work with. If the answer is “1 year”, you may be initially frightened away-but if that one year has been with a solid mentor whom your advisor still works with, hand-in-hand, that may be just fine.

Q: What is your philosophy of money management? This question can be followed by:

o What types of investments do you recommend?
o What is your area of expertise?

A: Make sure the philosophy of your advisor matches your own (conservative, for example, if indeed you are). Make sure he or she knows what he or she is talking about when referencing types of investments.

Q: What references can you give?

A: If you’ve asked for a referral from a friend you trust, this is less important; if the advisor is new to you, there’s nothing amiss in asking for a reference.

Investment Management Advice

Management investment advice is an encompassing process. A management investment advisor can give you plans that will help you meet your goals by evaluating your situation and exploring opportunities for your growth and success. This expert will help you understand the challenges you face and guide you in making the right investment decisions.

An expert management investment advisor will first gather information from you. This information will concern your goals, family, assets, tax rate, risk tolerance, liquidity and income needs. You will then be given options and recommendations regarding stocks, pensions and irrevocable trusts that match your investment profile. You and your advisor will develop an investment plan utilizing stocks, bonds, cash and other investments that are structured to fit your needs and lifestyle.

You will be giving an investment policy statement so that you know what is being done and how it’s being done. Should changes occur, ongoing evaluations of your situation will occur and meetings with your investment manager will take place regularly. It is important to stay in continual contact with your investment management advisor, because of the constantly changing climmate in the financial world. Values of commodities rise and fall with world events and with the natural fluxuations of the world economy. You will have to stay abreast of these factors through your advisor.

Investment management advisors generally have a wealth of institutional data and knowledge about where best to put your money. They profit when you profit, so it works for everybody. Make sure your advisor company has been in the business for a long while; this ensure they have built up a solid reputation and will not put your wealth in jeopardy.