Asset Management
Wealth managers focused on lowering liabilities and generating above average asset returns .
Asset management refers to the professional handling of a portfolio of securities, like stocks, real estate, and businesses. It’s also known as investment management, money management and portfolio management. Asset managers typically manage assets to achieve specified financial goals for a client.
An asset manager’s job is to make you money on your investments. When you hire an asset manager, the first thing they will do is help you define your financial goals and profile. They may ask you questions like:
– Are you looking to achieve short- or long-term returns?
– How much can you afford to invest?
– How much risk are you comfortable with?
– When do you want to retire by?
Based on your goals and needs, the asset manager will typically develop a custom portfolio strategy. In some cases, they may set you up with a model portfolio that employs a preset strategy. In addition, they will identify the an asset allocation for your portfolio. As part of an ongoing relationship, your manager will periodically adjust this allocation based on your changing goals.
Once your portfolio plan is put in place, the manager will arrange and initiate the actual investment of your money. Most management firms don’t physically hold on to your assets. Instead, they use what’s called “custodial accounts” at larger brokerage firms. This can include brokerages like Charles Schwab, TD Ameritrade and others.