Investment Management Service – Is It Worth It?

Are you thinking of getting an investment management service to grow your wealth? If you want a comfortable life and a financially secure retirement, the right investment strategy is key, and an investment management service can certainly help. However, choosing such an investment management service is not so easy. You might feel hesitant in choosing one or finding the best one for yourself. That’s why we always recommend investors worth $10 million or more to read our guide to learn about the complexities involved in choosing the right advisor.

STRATEGIES FOR FAMILIES WORTH $5 MILLION TO $500 MILLION

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The insights you’ll discover from our published book will help you integrate a variety of wealth management tools with financial planning, providing guidance for your future security alongside complex financial strategies, so your human and financial capital will both flourish.

Clients frequently share with us how the knowledge gained from this book helped provide them tremendous clarity, shattering industry-pitched ideologies, while offering insight and direction in making such important financial decisions.

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You can also go to Pillar Wealth Management directly if you’re in search of a reliable and experienced investment management service. Our wealth managers hold more than six decades of combined experience in offering a wide range of investment, advisory, and other financial services. We use more than 100 years of market data to test our portfolios and formulate the best investment strategies for our clients. Click here to start a free chat with our investment advisors today.

In this blog, we’ll be discussing what makes investment management so interesting, why you need an investment manager and the type of companies and organizations that provide investment products and services. Let’s get started.

Table of Contents
What is Interesting about Investment Management? Is an Investment Manager Worth It? Which are Providers of Investment Management Products and Services? Choosing the Right Investment Management Service Final Thoughts

What is Interesting about Investment Management?

When it’s your $5 million to $500 million worth of liquid assets at stake, investment management can seem incredibly scary. Not to mention, you can’t afford to experiment and learn it all yourself unless you want to put all your wealth at risk. However, the truth is that investment management is quite interesting and, more importantly, crucial for high-net-worth investors and ultra-high-net-worth individuals.

Even if you have $500 million or more in your account right now, you can easily lose all of it due to any unforeseen events. With the help of an investment management service, you can invest your wealth across different products and commodities. This will allow you to sustainably grow your wealth while you secure your retirement and live the life you desire.

The word investment can instantly remind you of high risks and losses. While risks are certainly a reality of investments, that’s not all there is to it, and that’s what makes investment management so interesting. You can study the market and design your own portfolio according to your risk tolerance, expected returns, financial goals, and much more. Learn more about the intricacies involved in investment management from our experienced advisors.

Is an Investment Manager Worth It?

Perhaps while you are still young and only have a couple of thousand dollars of liquid assets, it makes sense to manage your own finances and invest your money however you like. But, as you grow older, as your net worth increases, as your family grows and responsibilities increase, and as your overall financial situation changes, it not only makes sense but it becomes vital to hire an investment manager.

Especially once you have $5 million or more in liquid assets, the stakes are automatically much higher. So, you need to partner with the right investment manager or financial advisor to guide you through. Here are some reasons why an investment manager is worth it.

Diverse Investment Portfolio

An investment manager can help develop a diverse investment portfolio. This is one of the most critical aspects of an investment strategy. Many high-net-worth investors tend to think they can make successful investments on their own by simply diversifying their portfolio.

They would invest in 20 or 30 stocks of different energy companies, thinking they are safe from any risk now. However, any event that affects the entire energy sector could affect the performance of that entire portfolio that focuses on just energy company stocks.

An investment manager or an investment management service can create a truly diverse portfolio for you that includes products from several companies and across different assets as well. Discover other strategies to protect your wealth and assets by ordering a free copy of our book, The Art of Protecting Ultra-High-Net-Worth Portfolios and Estates – Strategies for Families Worth $25 million to $500 million.

Research and Due Diligence

Investment managers also carry out extensive research and the required due diligence. Even if you hold some experience in investments and portfolio strategies, chances are you might not know about the legal aspect of the investments.

An investment manager goes through several years of training and experience, which equips them with such knowledge. As a result, they are able to carry out any due diligence that is necessary for safe and successful investments. Moreover, they also conduct a lot of research.

They study the market trends and forecasts, evaluate the overall economy and then test your portfolio in various circumstances to address any holes in the strategy. At Pillar Wealth Management, we use more than 100 years of market data to test our client’s portfolios and readjust them as necessary according to prevailing risks in the market. Schedule a no-obligation chat with our wealth managers to learn more about it.

Fiduciary Services

While this does not apply to all investment managers, there are some out there that provide fiduciary services. Investment managers who are a Registered Investment Advisor (RIA) often have a fiduciary duty to their clients. This means they are obligated to serving their client’s needs in the best way possible. They must suggest options that are the best for the client.

They have to disclose everything to the client so that they can make informed decisions. In comparison, certain non-RIA, such as brokers, don’t have any fiduciary duty and simply follow the suitability standard. This standard of care can lead to a conflict of interest and the brokers prioritizing their needs above the clients’.

Financial Freedom

An investment manager can give you your financial freedom. High-net-worth investors and ultra-high-net-worth families are some of the busiest people out there. They have to look over the vast amounts of their wealth as well as other things in life. Even if they have all the skills for formulating the perfect investment strategy, they lack the time to execute it and monitor it.

That’s why working with an investment manager can be worth it. These professionals can take over the time-consuming aspect of investment management, allowing you to focus on your businesses, retirement, or whatever else you prefer.

Holistic Investment Management Service

Investment management on its own is not enough. It can produce other expenses and costs that need to be managed as well, such as taxes. Consequently, an investment manager provides holistic investment management service. This includes tax optimization to reduce your tax bill or to employ tax-loss harvesting strategies.

It includes minimizing other transactional charges, such as by striking a balance between active and passive management. Discover why this balance is so important from our handy guide on portfolio growth strategies. Likewise, it includes risk reduction, insurance planning, and other services for comprehensive investment management.

Financial Serenity

Most importantly, an investment manager is worth it because they can help you attain true financial serenity. This means you can truly relax and not worry about your financial situation and wealth because it is in the capable hands of your investment manager.

Which are Providers of Investment Management Products and Services?

There are various types of firms out there that provide investment management service and products to high-net-worth investors with $5 million to $500 million in liquid assets. Most of them are registered with the Securities and Exchange Commission (SEC). The three main types of investment companies include:

• Open-End Funds

• Closed-End Funds

• Unit Investment Firms

Choosing the Right Investment Management Service

As important as it is to work with an investment management service, it is even more crucial to find the right investment service. You can find investment management services at private banks too, but those are not always right for high and ultra-high-net-worth investors.

So then, how can you find the right investment management service for your specific needs? Read our complete guide to read about all the signs you need to watch out for, or here are a few factors you can consider.

Credentials

The first thing you need to check is the firm or manager’s credentials. They should hold all the necessary licenses and certifications for the services they are offering. Sometimes, certain financial advisors can only advise you on investment matters and not execute any investments because they lack the right certifications. Therefore, make sure you do a complete background check of the firm to assess their credentials.

Experience

You should also check their experience. Especially for an investment management service, experience matters a lot as there are certain things and certain knowledge that only comes with years of experience. Furthermore, make sure they have the relevant experience, which includes working with high-net-worth investors and offering diverse investment management services.

Clientele

It is also important to consider the type and number of clients the firm has. For starters, as just mentioned, they should deal with affluent clients exclusively as such clients have unique challenges, entirely different from others. Moreover, don’t assess their skills and abilities based on the number of clients that have used their services. Instead, check how many clients they have been able to retain over the years, as that shows client satisfaction and loyalty.

Standard of Care

You can check what standard of care they offer when you do a background check. However, if you don’t, you need to make sure you ask about their standard of care. This can help you avoid any conflicts of interest and ensure that your investment strategy is always aligned with your short and long-term personal goals.

Customized Solutions

The firm should offer customized solutions and investment packages. Many major financial institutions offer a cookie-cutter experience based on superficial questions about your risk tolerance. Such investment companies don’t really help you achieve your goals. That’s why you need to choose the investment manager that understands your life goals and aspirations and formulates personalized financial solutions accordingly.

Understanding of Different Costs and Fees

They should also have a clear understanding of different costs and fees associated with different investment activities. Many financial advisors help you achieve high investment returns, but they come with high costs and expenses as well, which makes your overall portfolio performance ineffective.

The right investment managers will adopt a more holistic approach to your investment management and make sure to maximize your portfolio performance from all aspects. Click here to check out our comprehensive guide on portfolio performance to discover other ways to improve the performance of your investments.

Final Thoughts

Once you’ve got the right investment management service taking care of all your investment needs, you can truly attain financial serenity and security and focus on other goals in life. Hopefully, by now, you know how to choose the right firm. Learn more about it from our extensive guide on choosing the right advisor for investors worth $10 million or more.

Otherwise, you can contact Pillar Wealth Management. We are one of the best private wealth management firms with more than six decades of combined experience in helping affluent clients solve their financial problems. Our experienced wealth managers work closely with our high-net-worth investors to understand their goals and formulate personalized investment plans accordingly. Schedule a no-obligation chat with Pillar Wealth Management today to get started on your personalized investment strategy.

Authors

Hutch Ashoo

Chris Snyder

To be 100% transparent, we published this page to help filter through the mass influx of prospects, who come to us through our website and referrals, to gain only a handful of the right types of new clients who wish to engage us.

We enjoy working with high net worth and ultra-high net worth investors and families who want what we call financial serenity – the feeling that comes when you know your finances and the lifestyle you desire have been secured for life, and that you don’t have to do any of the work to manage and maintain it because you hired a trusted advisor to take care of everything.

You see, our goal is to only accept 17 new clients this year. Clients who have from $5 million to $500 million in liquid investable assets to entrust us with on a 100% fee basis. No commissions and no products for sale.