Choosing an investment advisor to work with can be quite tricky. Investment advisors walk, talk, and act the same; however, the reality is that there are many different types of advisors out there to choose from.
Strategic Partnership: Kinsted Wealth
Call it a little quantitative chemistry, as we partnered with a wealth management firm to add a discretionary manager role. We formed this relationship based on shared values and a belief in delivering services the way we wanted our finances managed.
A constant and steady process
Investment (or portfolio) management can take on a variety of different meanings.
You and your family have a unique set of needs and wants, and your investment portfolio should reflect it. Your portfolio can provide ongoing income during retirement or build for long-term growth so you can enjoy retirement at some point down the road. Investment management is a constant and steady process that should adjust throughout the stages of your life.
Investment management involves the allocation across various assets. This includes equity-type investments such as stocks or fixed income such as bonds to arrive at a portfolio that achieves a targeted rate of return based on a given level of risk tolerance – again, superimposed based on your goals & objectives.
Recently, the investment universe has expanded to allow for allocations across a broader range of assets, including anything from farmland & infrastructure to private equity, allowing for a more diversified portfolio. Further diversification helps reduce specific risk against any individual position or asset class.
Frequently Asked Questions
How do investment management firms earn money?
Investment management firms earn their money from a fee that is paid in return for providing a service. This tends to be a primary point of discussion as everyone is always looking for the lowest price. However, two questions should be asked:
- What is the value you receive for the fee?
- Is there complete transparency regarding the fee (how it’s paid and who it goes to)?
How do I pay the lowest fee possible?
If your primary concern is achieving the lowest fee option, you can expect to receive a lower level of service while you’re there. The problem with fees is that they tend to lack transparency – many hidden or trailer fees usually do not see the light of day. The other issue is that there can be an inherent conflict of interest depending on how the fee is received.
Essential questions to ask are:
· Are your fees based on the number of transactions placed?
· Are your fees based on what you are invested in?