It Is Your Money After All

Category: Finance, Financial Planning.

You will certainly find that it is really not easy to evaluate a money manager. As a matter of fact they should be able to help you to increase your net worth.

Some money managers cannot really help. When you consider hiring a money manager, you should bear the following issues in mind. What are the tools they will use to help you to increase the net worth? First of all, you will need to consider how they make money grow. Do they invest on stocks or mutual funds? You will need to ask all these questions. What is the focus of their investment portfolio?

Then you will try to see if they perform well. What you are doing is to investigate their performance in the past. Of course there is no way to see if they will perform well in the future. It will be excellent if you can have the performance record for a whole market cycle. You can know how well the money manager performed in the past thoroughly if you can see how well they did when the market went up or down. The market goes up and down in a market cycle. It is also important to know how they will make decision on their portfolios.

Or will they rely on research results from some other sources? Do they do the research themselves? To what extent will they rely on the these sources? The people who are actually working are also very important. You will certainly have a better understanding on them if you can ask these questions. If possible, you need to ask who will actually help you to manage the portfolio. You may also want to know who is going to help when the one responsible for your portfolio is on vacation.

Is he or she an experienced one in the business? Of course you may also consider the cost when you are choosing a money manager. A manager which charges you a high fee does not necessary mean that they will perform very well. However, this may not be the most important criteria you need to consider. You should always ask for a quote first. You will try to understand what kind of fees or commissions will be involved. You will need to know how a money manager charges.

Be prepared to negotiate if you are not comfortable with the quote. It is your money after all!