Do you have to be a millionaire to hire a money manager?

There seems to be a general belief that only millionaires can hire a money manager, this is completely untrue. In part this belief has spread because most money managers tend to market themselves to millionaires since they do get paid a percentage of the amount of money that they are managing. However most are willing to take on clients with smaller portfolios, there are even some who specialize in this segment of the market. There is no requirement that you be wealthy to get the benefits of using a money manager. In the words of Jason Secci: "In general, middle class people benefit the most from my services.".

As a general rule you don't need to be a millionaire to use the services of a money manager. That being said you do have to actually have money to manage. If you are deeply in debt and have no savings you certainly need help but probably not from a money manager, a credit counselor would probably be more helpful. However if you do have a portfolio to invest then you can certainly benefit from a money manager and it is not necessary to be a millionaire for this to be the case.

The goal of a money manager is to help you to grow your wealth; it would make little sense for them to focus exclusively on people who are already wealthy. Obviously there are some money managers who do this but there are others who specialize in helping average people to achieve their financial goals. They can do this because if you are not a millionaire you are going to have fewer investment options so it will be simpler for them to look after your portfolio. That means they can take on more clients and make their money that way.

The big thing that you have to make sure of when you are hiring a money manager is that they actually have your best interests at heart. This is a problem area for a lot of middle class people who use financial advisors. The problem is that they don't want to spend money on a financial advisor, which they can avoid doing because there are lots of people who will do it for free. The problem of course is that those advisors aren't really looking after your best interests; they are salesmen with an investment product to sell you. It is important that you hire a professional money manager and that costs money.

A money manager will help you to determine what your financial goals are and then come up with a strategy to help you to meet them. They will also handle the task of making the required transactions for your portfolio. One of the reasons that most people fail to meet their financial goals is that they don't have enough time to properly research their investment options. This is something that a money manager can do for you. The result is that you will be far more likely to see your wealth grow.