Choosing an Asset Management Firm
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For those of you lucky enough to have a significant amount put away in our savings account, it is important that you don’t just leave it sat their earning 1% interest and losing 5% because of inflation. By enlisting the services of an asset management firm it is not only possible to resist the effects of inflation but can also help you grow your wealth year on year. It is likely you have heard, particularly in recent years of economic turmoil, the phrase “the rich get richer” and whether you consider yourself rich or not, if you have savings available to invest you can benefit from the same advantages that make this phrase true even in the most difficult climate. A good asset management firm will be able to help you in more ways than just investing your money for a healthy return but can even help you minimise your tax bill, keeping track of where your money is invested, estate planning and wealth protection. You may feel that you are able to identify good investments but an asset management service will assist you in selecting the investment opportunities that will give you highest returns with the most minimal risk. If you’re willing to take on a bit more risk for higher returns, they will also help you do that.
One of the first things you should do is to ensure you actually require the services of an asset management company. If you want to make investments but would prefer to have control over all aspects of it and make investment decisions either through your own knowledge or through external advise, you may be better suited to a brokerage firm that will perform the actual purchasing and sales on your order. An asset management firm is more suited for those looking to outsource the investment decision and/or benefit from the additional services they offer such as estate planning.
Before you sign on with an asset management firm, take the time to look into the firm and their previous success rates, as well as ensuring that an individual wealth management firm is a better option than the investment and savings options offered through a private bank or financial advisor at a national bank. If you choose the latter, be aware that there advice is unlikely to be unbiased with the majority more concerned with pushing you towards their own financial products than ensuring you get the service and return you are looking for.
You should also think about the people who will actually be managing your money, not just the firm that they work for. Look into the members of staff you are working for and don’t be afraid to ask about their performance history, education and experience before you agree to allow them to manage your funds. It’s essential that you do not underestimate the important of this decision because the vast majority stay with their first choice of asset management companies for the remainder of their lives so ensuring that they understand and are willing to work to your needs is vital.
One of the first things you should do is to ensure you actually require the services of an asset management company. If you want to make investments but would prefer to have control over all aspects of it and make investment decisions either through your own knowledge or through external advise, you may be better suited to a brokerage firm that will perform the actual purchasing and sales on your order. An asset management firm is more suited for those looking to outsource the investment decision and/or benefit from the additional services they offer such as estate planning.
Before you sign on with an asset management firm, take the time to look into the firm and their previous success rates, as well as ensuring that an individual wealth management firm is a better option than the investment and savings options offered through a private bank or financial advisor at a national bank. If you choose the latter, be aware that there advice is unlikely to be unbiased with the majority more concerned with pushing you towards their own financial products than ensuring you get the service and return you are looking for.
You should also think about the people who will actually be managing your money, not just the firm that they work for. Look into the members of staff you are working for and don’t be afraid to ask about their performance history, education and experience before you agree to allow them to manage your funds. It’s essential that you do not underestimate the important of this decision because the vast majority stay with their first choice of asset management companies for the remainder of their lives so ensuring that they understand and are willing to work to your needs is vital.
