Understanding When To Hire An Investment Manager

Investment managers are individuals or organisations that advise clients on financial planning, investing, and portfolio management. They can help clients make successful investment decisions, increase their income, and save time.

When considering whether to hire an investment manager, it's important to understand the differences between investment managers and financial advisors. Investment managers have independent decision-making authority over plan assets, while financial advisors typically reject all decision-making authority and limit their duties to providing advice and educational services.

Investment managers can be particularly useful for individuals or businesses seeking to maximise their investment returns while minimising risk. They can also assist with specific financial goals, such as saving for a child's college fund or a large purchase.

It's worth noting that investment managers usually charge fees based on a percentage of the client's assets under management, so individuals should consider their needs and budget before deciding whether to hire an investment manager.

When you want to outsource financial duties

Investment managers are individuals or organisations that handle the financial planning, investing, and portfolio management activities of their clients. They can help you outsource financial duties, allowing you to focus on other areas of your life or business. Here are some reasons why you may want to consider outsourcing your financial duties to an investment manager:

• Time constraints: Outsourcing financial duties can free up your time, allowing you to focus on other priorities, such as your career or personal life. Investment managers work on your behalf to manage your financial planning, investments, and portfolio management.
• Expertise: Investment managers are experts in their field, with the skills and qualifications to handle complex financial matters. They have the necessary expertise to make informed decisions about your financial planning and investments. They can provide advice and direction to help you meet your financial goals.
• Risk management: Investment managers can help you minimise risk by diversifying your assets across multiple markets and asset classes. They assess your risk tolerance and create a strategy that aligns with your comfort level.
• Personalised service: Investment managers tailor their services to meet your individual needs and goals. They work closely with you to understand your financial situation, risk tolerance, and investment preferences. This personalised service ensures that your financial strategy is aligned with your short-term and long-term objectives.
• Performance monitoring: Investment managers continuously monitor the performance of your investments and provide regular reports. They track the performance of your portfolio against specific benchmarks and milestones, making necessary adjustments to meet your financial goals.
• Peace of mind: Outsourcing financial duties to an investment manager can provide peace of mind and reduce stress. Knowing that your financial matters are in the hands of qualified professionals can alleviate the pressure and anxiety associated with managing your own investments.

When you need help with financial planning

Investment managers can be a great help when it comes to financial planning. They can help you make sense of your financial goals and put together a plan to achieve them. Here are some scenarios where an investment manager can be beneficial:

You Have Complicated Financial Needs:

Investment managers can help you make sense of your financial situation if you have complex needs, such as multiple financial goals with different timelines. They can work with you to understand how and when you want to spend your money and create a comprehensive investment plan tailored to your circumstances.

You Need Help Sticking to Your Financial Plan:

Sometimes, you may know what to do with your investments rationally, but it's challenging to stick to your plan when the markets fluctuate. An investment manager can act as an "external voice," providing discipline and helping you adhere to your financial strategy, even during volatile market conditions.

You Want Peace of Mind:

If you're close to retirement or have recently received a substantial sum of money, an investment manager can provide valuable peace of mind. They can explain investment strategies and provide personalised guidance, helping you feel more confident about your financial future.

You Want to Maximise Returns and Minimise Risk:

Investment managers are skilled in maximising returns while minimising risk. They can advise you on selecting profitable investments, diversifying your portfolio, and making tax-efficient decisions. Their expertise can help you make well-informed choices to increase your income and achieve your financial objectives.

You're Short on Time:

Managing your investments can be time-consuming, especially if you have a busy schedule or multiple financial commitments. Investment managers can save you time by handling the day-to-day tasks of investing, such as buying and selling securities, monitoring performance, and providing you with regular updates.

You Want to Benefit from their Expertise:

Investment managers have the necessary qualifications, experience, and analytical skills to provide valuable insights. They stay up-to-date with market trends and investment strategies, allowing them to make data-driven decisions on your behalf. Their expertise can be particularly beneficial if you're new to investing or prefer to have a professional manage your portfolio.

Remember, when choosing an investment manager, consider their qualifications, fees, investment strategies, and the level of personalisation they offer. It's essential to find someone you trust and who understands your financial goals and risk tolerance.

When you want to save time

Investment managers can be a great help when you want to save time. They can help you manage your investments and save you the time and effort of doing it yourself. Here are some reasons why you may want to consider hiring an investment manager to save time:

Time-saving benefits

An investment manager can save you a significant amount of time by handling the day-to-day management of your investment portfolio. They can research and execute trades, monitor performance, and provide reports, allowing you to focus on other areas of your life. This can be especially beneficial if you have a busy schedule or prefer to spend your time on other pursuits.

Work while you work

Hiring an investment manager means you can continue with your work and daily life while they manage your investments. You don't have to worry about taking time off or constantly monitoring the market and your portfolio. This can lead to a better work-life balance and improved overall quality of life.

Expert advice

Investment managers are experts in their field, and their advice can save you time and improve your investment outcomes. They have the necessary background, skills, and qualifications to provide sound investment advice and strategies.

Efficient decision-making

Making investment decisions can be time-consuming and challenging, especially if you are a beginner or have a diverse portfolio. Investment managers can save you time by efficiently making these decisions on your behalf. They can identify suitable investment opportunities, assess risks, and make timely trades based on their knowledge and experience.

Long-term benefits

By saving you time in the short term, investment managers can help you achieve long-term benefits. Their efficient management of your investments can lead to higher potential returns and improved financial outcomes. This means that you can focus on your career, business, or other endeavours, knowing that your investments are being well-managed and optimised for the best results.

In summary, hiring an investment manager can be a valuable decision when you want to save time. They can handle the complex and time-consuming tasks associated with investment management, allowing you to focus on other priorities in your life.

When you want to save for specific goals

Investment managers can help you save for specific goals, such as saving for your children's college fund or making a big purchase like a car, boat or house. They can also help you with financial planning, which involves understanding how and when you intend to spend your money, and coming up with an investment plan that matches your time horizon and financial goals.

Expertise and Experience

Investment managers are experts in financial planning and investing. They can help you make informed decisions about your investments and ensure that your investment strategy is tailored to your specific goals. They have the necessary background and skills to provide good advice and minimize risk, especially if you are risk-averse.

Time Savings

Hiring an investment manager can save you time by allowing you to focus on your work or other commitments while they manage your investments. They will monitor the performance of your portfolio, report results, and make necessary adjustments to meet your financial goals.

Emotional Support and Discipline

A good investment manager will provide emotional support and discipline to help you stay the course during volatile market conditions. They can be a voice of reason, helping you adhere to your financial plan and avoid making impulsive decisions based on short-term market fluctuations.

Access to Resources and Networks

Investment managers have access to a wide range of resources and networks, which they can leverage to benefit their clients. They closely follow market activity and investment strategies to make informed decisions on behalf of their clients.

Holistic Financial Planning

Investment managers take a holistic approach to financial planning, considering your risk tolerance, investment goals, and time horizon. They can help you identify and assess the risks associated with specific investments and provide guidance on factors that affect risk, such as stock market conditions and performance.

When considering hiring an investment manager to help you save for specific goals, it is important to do your research, understand their qualifications and experience, and ensure that their investment approach aligns with your financial objectives and risk tolerance.

When you want to diversify your portfolio

Expertise in Diversification Strategies

Investment managers are knowledgeable about various diversification strategies and can guide you in selecting the most appropriate ones for your portfolio. They can advise you on allocating your investments across different asset classes, such as stocks, bonds, cash, and alternative investments. By understanding your risk tolerance, time horizon, and financial goals, they can create a tailored diversification strategy that aligns with your specific needs.

Access to a Wide Range of Investment Options

Investment managers have access to a broad array of investment options, including stocks, bonds, mutual funds, ETFs, and alternative investments. They can help you navigate the complex landscape of investment choices and identify the ones that fit your diversification goals. This includes selecting investments from different industries, sectors, and geographic regions to reduce concentration risk.

Regular Portfolio Rebalancing

Diversification is not a one-time event but an ongoing process. An investment manager can assist you in periodically rebalancing your portfolio to maintain the desired level of diversification. They will monitor your investments and make adjustments as necessary to ensure your asset allocation stays within the targeted ranges. This helps to control risk and ensure your portfolio remains aligned with your investment strategy.

Benefit of Time and Effort Savings

Diversifying a portfolio can be a time-consuming and challenging task, especially for individuals with busy lives or limited financial knowledge. An investment manager takes on the responsibility of researching, selecting, and monitoring investments on your behalf. This frees up your time and allows you to focus on other priorities while knowing that your portfolio is in capable hands.

Guidance on Global Investment Opportunities

In today's globalized economy, investment opportunities are not limited to domestic markets. An investment manager can help you explore international diversification strategies by identifying attractive investments in emerging markets, developed countries, or specific regions. They can provide insights into the risks and rewards of investing globally and help you access a wider range of investment options.

Frequently asked questions