How to make sure your money manager has your best interest at heart

A money manager can be a great benefit for most people however many are wary of using them. The reason for this is that over the years the whole business of offering financial advice has become dominated by people who don't really have the best interests of the people they are advising at heart. Clearly if you are going to use the services of a money manager you need to make sure that they do in fact have your best interests in mind.

The best way to make sure that your money manager has your best interests at heart is to make sure that they are paid based on how well they do at looking after your portfolio. This is done by hiring a money manager who is paid a percentage of the amount of money that they are responsible for managing. This means that the more money that is in your portfolio the more they get paid; therefore their best interests are the same as your best interests, clearly the best way to make sure that they are going to do their best for you.

One of the reasons that most people end up dissatisfied with the people they are getting their financial advice from is that in most cases they actually have different interests. The main reason for this is that most people don't really want to spend the money required to hire somebody who will look out for them. A lot of people find it hard to justify giving away a percentage of their portfolio to a money manager when there a whole bunch of people who will do it for a much lower fee. Did you ever wonder why they do it for a lower fee?

The reason of course is that they want to sell you something. The most common example of this is your broker. People often take the advice of their stock broker because it is free and they assume that he knows what he is talking about. In reality in most cases when he advises you to buy a stock it is because the firm that he works for has a lot of this particular stock that they need to move. Your broker isn't looking after your best interests he is looking after his firms.

The other common example of financial advisors who don't have your best interests at heart are financial planners who are willing to offer you free assessments. The reason that they do this is that in most cases these so called financial planners are actually mutual fund salespeople. If you want unbiased money management that has your best interests in mind you are going to have to pay for it. The amount should be reasonable of course but you have to make sure that your money managers best interests are tied to your best interests.