Money Managers Near Me: What Do They Do? PillarWM

There are several reasons why you need to hire money managers to manage your assets and wealth. For instance, the best money managers will analyze your financial objectives and develop customized financial plans that are in line with your unique financial situation. For more information on choosing the best financial advisor, make sure to read our ultimate guide for investors with $10 million or more.

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Table of Contents

What Money Managers Do: 3 Areas of Expertise
Reasons to Use a Money Manager
How Is a Money Manager Paid?
How to Select a Money Manager
How Do I Find Money Managers?
Should I Meet with Money Managers?

At Pillar Wealth Management, our team of financial advisors offers exclusive money management services to individuals who have liquid investable assets worth anywhere between $5 million and $500 million. We take pride in helping our clients reach financial serenity so that they can spend their life without stressing over their finances. If you are a high net worth or ultra-high net worth individual, feel free to set up a meeting with one of our team members to know how we can help you manage and grow your wealth.

What Money Managers Do: 3 Areas of Expertise

A money manager is basically a financial advisor who handles the asset portfolio of an individual or an institutional investor. Generally, a money manager has expertise in several areas, including researching the latest financial products, choosing the optimal investment options, tracking the performance of investment portfolios, deciding when to sell assets, etc.

In return for a fee, money managers have the responsibility to choose and manage investments for their clients diligently. This includes formulating a suitable investment strategy and purchasing and selling securities to help their clients accomplish their short and long-term financial targets. A money manager is also sometimes referred to as an “investment manager,” “asset manager,” or “portfolio manager.”

But the question still remains – what do money managers do? Well, here is a list of services that a money manager can offer to its clients.

• Investment Management

• Asset Allocation Analysis

• Risk Management

1. Investment Management

Investment management refers to the process of managing investments along with other financial products. Even though many people believe that investment management is all about acquiring and selling assets, it’s not true. In fact, it’s the process of developing a holistic strategy for buying and selling portfolio holdings.

Moreover, investment management includes various other services such as analysis of financial statements, stock selection, tracking current investments, developing and implementing portfolio strategy, and asset allocation. In addition, investment management may also encompass financial planning and advisory services. This means that a money manager won’t merely oversee your investment portfolio but will also ensure that it is aligned with your financial objectives.

Expert money managers also deal with numerous financial assets and securities, including commodities, equities, bonds, and real estate. They might even manage real assets such as precious metals and artwork.

At Pillar Wealth Management, our team has detailed knowledge regarding the numerous available investment opportunities and how they work. Our advisors have expertise in assessing investment portfolios and developing suitable strategies that align investment to match retirement and estate planning. We have also written a handy guide, Improving Portfolio Performance, to help you get more information about the techniques you can use to get the maximum investment performance.

2. Asset Allocation Analysis

Asset allocation is an investment tactic that aims to strike a balance between potential investment returns and risks. It includes the distribution of assets among various categories such as cash, bonds, stocks, derivatives, and real estate. Each category of investments offers a varying level of return and carries a different level of risk. Hence, if a particular asset category’s price rises, the price of another asset category might decrease.

Many individuals believe that this strategy can only result in moderate profits. However, it’s the best tool for most affluent investors to secure their wealth from a major loss in case things become unfavorable in a particular category of assets. All in all, most financial experts agree that asset allocation is one of the best ways for an investor to maximize their portfolio returns. Before we move forward, we highly recommend reading The Art of Protecting Ultra-High Net Worth Portfolios and Estates: Strategies for Families worth $25 Million to $500 Million. This a free hardcover book where we discuss the importance of asset allocation strategies.

3. Risk Management

Risk is an inseparable part of an investment. Almost every investment you make carries a certain degree of risk. For instance, U.S. T-Bill is generally considered to be a zero-risk investment, whereas real estate securities, hedge funds, and cryptocurrencies are high-risk investments.

From a financial perspective, risk management is a process where a money manager will identify, analyze, and mitigate the risk associated with investment decisions. Money managers usually do this by studying and quantifying the chances of losses in an investment and then take steps to lower those chances.

With Pillar Wealth Managements risk management services, you can invest your wealth in a manner that maximizes your returns while minimizing your risks. Our professionals are adept at identifying, assessing, and mitigating risks that can arise due to numerous reasons such as market volatility, inflation, etc. Read this guide to learn about the essential performance and risk mitigation strategies, along with the shifts you need to make to get the highest investment performance.

Reasons to Use a Money Manager

Money managers usually hold a certification, such as CFP or RIA, that qualifies them to provide advice on a range of financial issues, particularly investments. Clients benefit from the expertise of these professionals, who work diligently to satisfy their clients’ wants and needs. These advisors are trained to analyze markets, study potentially profitable company stocks, and create balanced portfolios for their clients.

How Is a Money Manager Paid?

A money manager is usually paid a percentage of the value of the client’s portfolio as an annual fee. The percentage ranges from 0.50% to 2%, depending on the level of personalization provided and the size of the portfolio. The fee could also be a flat fee. A manager may also charge a flat fee or an hourly fee for a particular service. Some managers are paid commissions on the sale of certain products, and some also earn performance fees.

How to Select a Money Manager

1. Decide on the Type of Money Manager You Need

Decide if you need a money manager to help you reach your goals, whether for retirement income or for your investments. A money manager has the knowledge and expertise to work with you to improve your budget and motivate you to stick to a savings program.

A money manager can advise you on how to invest and how to build a retirement plan. They can define an investment strategy to maximize the returns on your investments and minimize the taxes you owe.

2. Review Your Money Manager Options

Most financial professionals are registered as brokers with the SEC, allowing them to buy and sell investment products such as stocks, bonds, mutual funds, and annuities. They must be sponsored by a brokerage firm to pass the exams administered by the Financial Industry Regulatory Authority (FINRA), and most firms would expect them to have earned a bachelor’s degree although it’s not a requirement for a broker.

To be sure that you hire a money manager who has your best interests at heart, look for the CFP designation. A certified financial planner is required to have a bachelor’s degree, complete an education program approved by the CFP Board, pass the Board exam, and accumulate at least 4,000 hours of experience. A CFP is a fiduciary and must abide by a code of ethics.

Other designations, such as CFA (Chartered Financial Analyst) and ChFC (Chartered Financial Consultant) also have demanding education requirements and administer exams to qualify as members.

3. Interview the Best Options

Develop a list of advisors with whom you think you could develop a long-term relationship. Start with your family and friends, coworkers, and anyone in your network who may already have a money manager.

Once you’ve prepared a list of advisors, you can do a background check using FINRA’s BrokerCheck. If the advisor is a CFP, verify their credentials on the CFP Board website. You can check a registered broker’s credentials at the SEC site, investor.gov.

With your shortlist of candidates, you can proceed to contact each advisor to determine if they are compatible with your financial needs.

Ask the advisor to describe their background and experience with various investment vehicles and their overall approach to investing.

Make sure the services the advisor provides match your needs. Similarly, the advisor will want to know as much as possible about the services you’re looking for. Then you can determine if the advisor is a good fit.

How Do I Find Money Managers?

If you believe that you do need the services of a money manager, such as the ones discussed above, you might think, “How do I find money managers?” To make this process easy for you, we have prepared a list of the essential steps you need to follow. However, if you want more detailed guidelines regarding the topic, read our guide on choosing the best financial advisor.

Step #1 – Make a List of Some Names

When searching for money managers, you can definitely get a few names from a phone book. Plus, a quick Google search on the “best money managers near me” will also yield plenty of results. Nevertheless, the best way to start is by getting referrals from friends, family members, and colleagues. You can ask individuals in your circle who have a net worth in millions for names of money manages they have worked with in the past. Once you have collected 3 to 4 names, search them up on Google.

Another great starting point is by using the search tools provided by the major industry associates. For example, you can use the Planner Search tool provided by The Financial Planning Association or the Find an Advisor Tool by The National Association of Personal Financial Advisors to look up money managers who can effectively help you attain your financial goals.

Step #2 – Carry Out a Comprehensive Background Check

When hiring a money manager, make sure you carry out comprehensive research. After all, this is a big decision that requires you to all your wealth to another person. Fortunately, the industry has made this process quite simple for wealthy individuals by making the background of money managers available to search.

When researching money managers, pay special attention to the services they offer and their qualifications. Certain money managers might even be listed on the CFP website or databases such as Financial Planning Standards Board (FPSB). You can use these platforms to get details about their background and credentials.

Other than that, you can even look up your potential money manager on LinkedIn and have a look at their work experience, educational qualifications, and any recommendations they’ve received from their clients. Any books, blogs, or articles that a money manager has authored also boosts their credibility and reliability. Lastly, if the professional claims to have any memberships, you can ask them for their registration number and check if it’s legit. Sign up for a free meeting to learn more about the qualifications and experience of the financial advisors at Pillar Wealth Management.

Should I Meet with Money Managers?

Once you have shortlisted a few money managers, you might be a little confused and think, “Should I meet with money managers?” After all, you might be able to get all the information you feel is necessary on the internet.

Nevertheless, the short and simple answer to your question is yes. After you have identified a couple of money managers, you should make it a point to meet them, either over a video call or in-person, before you officially hire them.

Keep in mind that a money manager will give you financial advice that will make or break your financial goals. Plus, you will have to work with them for several years in the future. Thus, it would be best if you had a comprehensive understanding of how they perform their business and make sure you’re entirely comfortable with their management style and approach. If you want to schedule a meeting with the managers at Pillar Wealth Management, simply visit our website and pick a meeting slot that’s convenient for you!

The introductory meeting you have with your money manager can give you a lot of insight into their personality and help you finalize your decision. But for this meeting to be worth your time, you need to do some preparation. Here’s a detailed guide on how you can prepare for your first meeting with your money manager.

1 – Know Your Current Financial Situation

Being an ultra-wealthy individual, hiring a money manager is one of the most important decisions you can take. The more in-depth information you can provide about your existing financial circumstances, the better financial plans and strategies you can hope to get.

To have a comprehensive understanding of your financial situation, begin by listing down all your liabilities (debts, credit card loans, mortgages, etc.) and assets (liquid assets such as cash, investments in bonds, stocks, gold, real estate, etc.) A clear idea of your financial position will help your money manager construct a comprehensive financial plan for you.

2 – Properly Define Your Financial Objectives

The next step to preparing for your meeting with a money manager is to list your financial goals. Wealthy individuals such as yourself tend to have various financial goals. These often include the desire to spend a comfortable retirement, establish a charitable trust, leave behind a meaningful legacy, invest in a new business, etc.

A money manager can help you attain your financial goals, but first, you need to be clear about them. So, prior to your meeting with a money manager, make sure you have a list of clearly-defined objectives.

3 – Clear Any Doubts That You May Have

You can use the meeting as an opportunity to put forth any questions that you may have for the money manager or about money management in general. Doing so will clear away any doubts and help you decide if the manager is adequately skilled to meet your requirements. If you aren’t sure about the questions you need to ask, you can peruse our guide for investors with $10 million or simply read below.

How Do You Make Money?

Money managers can use a variety of options to charge their clients. You can either opt for fee-only, fee-based, or commissioned managers. Fee-only managers usually charge a flat fee or an annual retainer. In some cases, they might change their clients an hourly fee or a percentage, which is typically one percent of a client’s assets.

Are You A Fiduciary?

A fiduciary money manager will always work in your best interests. Non-fiduciary managers only suggest products that seem “appropriate” — even if they’re not the most suitable or cost-effective for you.

How Will Our Relationship Work?

You need to know how frequently you will meet with the money manager and whether they are available for emails or phone calls outside of scheduled appointments.

4 – Spend less time and effort in planning

With a money manager doing the heavy lifting, you can save time and energy. You’ll reduce the stress of managing your investments on your own. Take advantage of your advisor’s expertise to develop a financial plan that will help you meet your short- and long-term financial goals.

5 – Make well-judged financial decisions

Working with a money manager allows you to benefit from their experience and expertise in all areas of finance. Their advice is aimed at providing the most effective strategies for meeting your financial goals, such as preparing for retirement and making investments to grow your wealth.

6 – Tax Guidance

Growing your wealth also means minimizing your tax burden. A money manager is well equipped to manage your investments so that you pay the minimum amount of taxes.

7 – Invest wisely

Through a money manager’s broad knowledge of the market, you can benefit by making smarter investments based on all the available data and market analytics.

8 – Better than brokers

A money manager not only recommends investments, but they can also advise you on all aspects of your financial situation, from managing your expenses more effectively to writing a will that fully respects your intentions regarding how your wealth is distributed when you die.

A Few Last Words

At Pillar Wealth Management, we have been offering comprehensive money management services to affluent clients for over three decades. Given our vast experience and expertise, we believe that we are the top firm you can choose. So, what are you waiting for? Book a meeting with us and start working on your money management plans TODAY!

Frequently Asked Questions about Money Managers

What does a money manager do?

Money managers provide financial advisory services such as preparing a financial plan and developing strategies for implementing the plan to meet the client’s financial goals.

What are examples of money managers?

Money managers are stock brokers, CPAs, financial planners, banks, investment firms, insurance brokers, financial analysts, and tax attorneys.

Who is the best money manager in the world?

Warren Buffett is often spoken of as the greatest investor today, having been extremely successful over decades, taking a long-term approach and holding on to cash until the right opportunity arises.

What is the difference between a money manager and a financial advisor?

These terms are used interchangeably although a money manager may take a more holistic approach to financial planning, while an advisor may focus more on investments.

Is money management a skill?

Money management is a skill that is built over time, requiring passion and appropriate training and education, then refined with accumulated experience and commitment.

Is a money manager worth it?

Someone with a financial background can manage independently, but hiring a money manager can be worthwhile for someone without enough knowledge to make smart investments or enough time to do it.

Is a money manager free?

Regardless of how the money manager is compensated, the investor pays fees, either directly to the advisor or deducted from their investment account.

What makes a good money manager?

A good money manager focuses on the best interest of the client, not their own. They work hard to help clients meet their financial goals and are transparent about how they work and how they are paid.

How do I become a successful money manager?

Money managers are experts in finance, including the stock market, tax law, business and data analysis, among others, understanding the economy and various sectors such as real estate and technology.

How do I become a smart money manager?

A smart money manager has good money habits, sticking to a budget and savings plan, being aware of how to reduce unnecessary expenses by eliminating impulse buying and not following the latest trend.

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.