What does a money manager do?

Most people have heard that they can benefit from using a money manager but many are uncertain as to what exactly they do. The answer of course is that they manage your money. Specifically they will help look after your finances so that you can reach your monetary goals.

According to Jason Skepyan, the main goal of a money manager is to help people to meet their investment goals. Of course to do that they have to know what your investment goals are. Therefore they will sit down with you and discuss what your goals are. They will likely have to work with you to help you to determine what your goals are. Most people have no goals at all or if they do have them they are usually completely unrealistic. Your money manager will likely want to work with you to set specific and attainable financial goals.

Once the goals are set your money manager will devise a strategy for how to get there. This will require balancing growth with safety to make sure that you are getting the best returns without taking too much risk. That means they are going to have to think about things like what your money should be invested in and how much of your money should be in each type of investment. This can be quite complicated; especially if you have a large portfolio and this is where most people find that they get the most benefit from using a money manager.

After a financial strategy is decided on it is of course necessary to actually make the required transactions. This is something that your money manager will do for you. It is all well and good to decide that a certain percentage of your money should be in stocks but you still have to decide on which stocks those will be. In most cases your portfolio will need to be actively managed, you can't just buy the stocks and forget about them. This is something that your money manager will look after for you. They will decide which trades need to be made and then make them on your behalf.

Obviously if you are going to let somebody make the decisions about your financial portfolio you are going to need somebody that you trust to handle that job. This is where a lot of people go wrong, mainly because they are trying to save some money. There are lots of people who are willing to offer you financial advice for free. Usually these are brokers or financial planners. The reason that they do this is because they are looking to sell you investment products. Clearly they don't have your best interests in mind. You need to go with a money manager who is paid a percentage of the money under management; this will ensure that they have your best interests at heart.