When it comes to your financial future and long-term success, your investment manager plays a powerful role. Serving as your guide for wealth management, an investment manager is your partner for fulfilling your financial ambitions, and developing strategies to help you reach these milestones.
However, not all investment management services are created equal. That is why it’s important to identify the best investment management company for your personal financial situation and objectives are not a straightforward venture.
Your choice of an investment management company will dictate your investment success. So, remember the following guidelines to ensure a successful and rewarding partnership in the years and decades ahead.
What is an Investment Manager?
An investment manager is essentially an individual or organization that manages all the intricacies of wealth management and financial planning. This is especially true when investing and managing a portfolio designed to grow wealth.
The services an investment manager provides can vary widely. However, it can entail the day-to-day buying or selling of assets, conducting performance analysis, making recommendations or strategic moves, and essentially overseeing activities that will increase your return on investment.
How to Select an Investment Manager
Selecting an investment manager is a personal process that begins with an introspective assessment.
These initial steps include (but are not limited to), the following:
Identify Your Investment Goals
The first step is to create a rough outline of your financial goals, including what you want to accomplish, and your timeline. Retirement is a common starting point for many new investors. So, consider how much money you’d like to have at your personal goal line and the time horizon to get there.
Evaluate Your Risk Tolerance
Your financial goals and your time horizon will fundamentally determine your risk tolerance. Additionally, you may want to embrace a riskier or a more conservative investment strategy based on these factors alone.
However, risk tolerance is also a personal decision. You may have more peace of mind by investing with a slightly smaller ROI, but a much more secure future. When you meet with a prospective investment manager, have your risk tolerance in mind and ensure that you pick a partner that will understand and adapt to your risk tolerance, and not the other way around.
Schedule an Initial Consultation
An initial consultation is key to picking an investment manager. You should always have a preliminary meeting before making a long-term decision on an investment partner. It’s helpful to come to your meeting armed with the information above.
However, remember that you don’t have to create a detailed accounting of your current and future budget to meet with a potential investment management company. In fact, an exceptional investment management company will ask plenty of questions to get a better sense of you as a client and your personal goals for the best path forward.
Ask About Fees and Costs Associated with their Services
Furthermore, not all investment management companies are created equal when it comes to fees and services. So, make sure you have a complete understanding of the costs involved before making a formal commitment.
Choose an Investment Management Company that Works Best for You
When it comes to crafting a smart investment management strategy with an investment manager, communication is key. A partnership with an investment management company should never be a one-size-fits-all endeavor. Therefore, it’s imperative that your investment manager listens and creates a plan that is perfectly suited to you.
You’ll want your investment manager to communicate clearly and effectively with you from the get-go. However, you’ll also want to make sure that your investment management company is focused on building a relationship for the long term.
Your financial goals and ambitions are uniquely yours, and when it comes to long-term wealth planning, your goals or financial circumstances may change in the years and decades ahead. A great investment management company will listen to your questions and concerns now and well into the future. Additionally, they will embark on a personal goal to get to know you better every step of the way.
Start Your Financial Journey with a Free Consultation with Saddock Advisory
At Saddock Advisory, our focus is on relationships. We understand that meeting and exceeding our client’s investment goals starts with listening, which is why the majority of our clients have stayed with us for decades.
Let’s start forming a partnership that will prove to be beneficial and successful for many years to come.
