Who Manages My Money?
You are faced with a critical choice. Do you manage your own assets or do you outsource the work to a financial professional? This should be an easy decision based on your knowledge, interest, and available time. But it's not easy! In fact, it is a complex decision that is a major source of financial risk if you make a mistake.
The financial services industry has made this choice more complicated than it should be. For example, ask yourself this simple question: "Who do I go to if I need help investing my assets?" There are more than one million advisors, planners, managers, consultants, reps, agents, and others want to help you. Some of these professionals provide advice and services for fees. Other professionals want to sell you investment products for commissions.
Investor Watchdog's FREE tools will help you make sense out of this hodge-podge of choices so you make the best decision for you and your family.
The Role of the Financial Planner
Planners help you develop a roadmap for your financial future. Their principal role is providing advice and information that help you make the right decisions, for example, the amount of money you need to retire on a specific date.
Choice #1: Do I need a financial plan? Do I develop the plan myself? Do I pay a professional to develop the plan for me?
The Role of the Financial Advisor
Advisors help you invest your assets. Their principal role is provide services that help you diversify your assets, select money managers, and monitor your performance.
Choice #2: Do I need investment advice? Do I act as my own advisor? Do I pay a professional to do the work for me?
The Role of the Money Manager
There are several types of money managers: Separate Account, mutual funds, hedge funds, Exchange Traded Funds, etc. They all have one characteristic in common. They make decisions when you invest your assets in the securities markets. They decide which stocks to buy, how much to buy, and when to sell.
Choice #3: Do I make my own unassisted investment decisions when I invest in the securities markets?
Overlapping Roles
There are no regulations that say a financial planner cannot also be an investment advisor or a sales representative. In fact, more than 90% of planners provide planning and investment services because they make more money.
